GlossaryEN1 min readUpdated: Jun 25, 2026
Jones Act (US Maritime Law for Domestic Shipping)
The Jones Act—Section 27 of the Merchant Marine Act of 1920—requires that cargo shipped between two U.S.
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Source: https://en.wikipedia.org/wiki/Jones_Act
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The Jones Act—Section 27 of the Merchant Marine Act of 1920—requires that cargo shipped between two U.S. ports travel on vessels built in the United States, registered under the U.S. flag, owned by U.S. entities, and crewed predominantly by U.S. citizens or lawful permanent residents. The law effectively bars foreign carriers from U.S. domestic maritime trade, known as cabotage. International freight forwarders and shippers commonly respond by routing cargo overland, transshipping through foreign ports, or absorbing the premium rates charged by Jones Act-compliant carriers. The Act is a perennial subject of policy debate: supporters cite national security and the preservation of domestic shipbuilding capacity; critics point to the significantly higher freight costs borne by non-contiguous territories such as Hawaii, Puerto Rico, and Alaska.
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