By VOICES Staff
Hawaii Congressman Ed Case is once again trying to weaken the Jones Act with a set of bills that claim to lower costs for Hawaii families. The real winners of Case’s bills wouldn’t be Hawaii’s families. Foreign shipping companies and countries like China, which already dominate global maritime trade, would take advantage. Without the Jones Act, these entities could control the lifeline of goods to Hawaii, dictating prices and prioritizing profits over service reliability.
The Jones Act and Hawaii’s Economy
Hawaii relies on a stable, reliable supply chain to receive over 90% of its goods by ship. The Jones Act ensures that this supply chain is served by American-owned, American-built, and American-crewed vessels that operate under U.S. laws and regulations. Without it, Hawaii would become vulnerable to foreign-controlled shipping companies with no obligation to serve the state reliably, especially in times of crisis.
This can be life and death, with barge transportation between islands being essential to disaster recovery after the Maui fires. The dedicated, ocean-going fleet is an integral partner to connecting Hawaiian businesses with markets on the mainland, as well as imports into the state.
The numbers prove the importance of the Jones Act to Hawaii:
- $3.3 billion in economic activity: The Jones Act maritime industry supports thousands of jobs in Hawaii and contributes billions to the local economy.
- 13,000 American Jobs: Jones Act carriers, directly and indirectly, employ thousands of Hawaii residents in maritime, logistics, and port operations.
- 20 specifically designed U.S. vessels currently provide regularly scheduled shipping services between the U.S. Mainland and Hawaii, employing talented mariners from Hawaii.
The Myth of Lower Costs
Case argues that the Jones Act increases the cost of living in Hawaii, but the facts tell a different story. Independent studies have debunked the claim that the Jones Act significantly raises consumer prices. For example, a comprehensive study by Reeve & Associates and TZ Economics found that the law does not have a significant impact on consumer prices in the state.
The study revealed that 71% of 200 consumer goods surveyed had identical prices in Hawaii and California, indicating that shipping costs under the Jones Act do not adversely affect retail prices.
In contrast, enabling foreign-flagged vessels into Hawaii’s domestic trades could have disastrous consequences. These ships operate under lax labor and safety standards, and their foreign owners are not accountable to U.S. regulations. Inconsistent service, price gouging, and supply chain instability could become the new reality for Hawaii’s businesses and families.
A Smarter Approach for Hawaii
The people of Hawaii deserve policies that strengthen, not weaken, their economic future. That future depends on a strong, secure, and reliable American maritime industry—one that the Jones Act continues to grow and support.
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