GlossaryEN1 min readUpdated: Jun 25, 2026
Jones Act Trade Shipping
Carriers, shippers, and freight forwarders moving cargo between U.S.
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Source: https://en.wikipedia.org/wiki/Jones_Act
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Carriers, shippers, and freight forwarders moving cargo between U.S. ports must comply with the Jones Act (Merchant Marine Act of 1920): only vessels that are U.S.-built, U.S.-owned, U.S.-flagged, and crewed by U.S. citizens may operate in this domestic trade. The law protects the American maritime industry but pushes domestic sea freight rates well above international market levels. The impact is most acute on supply routes to non-contiguous territories such as Hawaii, Alaska, and Puerto Rico, where Jones Act-compliant tonnage is frequently the only available ocean option. Violations carry substantial civil penalties for both vessel operators and cargo owners; waivers are granted by the Department of Homeland Security.
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