JONES ACT CARRIERS BACK PROPOSED LEASE FINANCING RULES

JONES ACT CARRIERS BACK PROPOSED LEASE FINANCING RULES    Shipping lines operating in the U.S. domestic trades support rules proposed by the U.S. Coast Guard allowing foreign financial institutions organized in the United States to own U.S.-built barges or vessels in the Jones Act trades, provided they are bareboat-chartered to U.S. citizens for at least three years.
   The Maritime Cabotage Task Force, a group of carriers formed to address Jones Act issues, said lease financing reduces the borrowing costs for vessels operated in the domestic trades.
   The Coast Guard issued the proposed regulations in response to a change in the law contained in the Coast Guard Authorization Act of 1996.
   “While the new law revised the U.S. ownership standard in a very narrow context, the new law did not repeal the basic U.S. ownership requirement for vessels operated in the U.S. domestic trade,” the task force said.