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Thanks to the regulatory relic known as the Jones Act….. – Publications – AEI

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AEI Thanks to the regulatory relic known as the Jones Act….. …. Shipping something to Hawaii from the West Coast can easily cost 2-3 times the cost of sending the same cargo to Australia. That cost is reflected in almost everything Hawaii residents buy in brick and mortar stores. That was the case for the Kauai-based Koloa Rum Company. Koloa Rum’s President and CEO Bob Gunter reported that when he needed to send a container of rum to Australia, he needed to first send it to Los Angeles. The Hawaii to L.A. leg cost him ,900. From Los Angeles to Sydney, Australia cost him only ,900. That’s what we learn from the Hawaii Public Radio article and radio segment “The Hidden Cost of Shipping Your Holiday Package.” You might be a protectionist …. if you think that the Jones Act increases

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AEI
Thanks to the regulatory relic known as the Jones Act…..

…. Shipping something to Hawaii from the West Coast can easily cost 2-3 times the cost of sending the same cargo to Australia. That cost is reflected in almost everything Hawaii residents buy in brick and mortar stores.

That was the case for the Kauai-based Koloa Rum Company. Koloa Rum’s President and CEO Bob Gunter reported that when he needed to send a container of rum to Australia, he needed to first send it to Los Angeles. The Hawaii to L.A. leg cost him $5,900. From Los Angeles to Sydney, Australia cost him only $1,900.

That’s what we learn from the Hawaii Public Radio article and radio segment “The Hidden Cost of Shipping Your Holiday Package.”

You might be a protectionist …. if you think that the Jones Act increases American prosperity by protecting the domestic shipping industry from foreign competition and thereby raises shipping costs for American firms above market rates by a factor of 2-3 times.

Thanks to the regulatory relic known as the Jones Act…..
Mark Perry

Mark Perry
Mark J. Perry is concurrently a scholar at AEI and a professor of economics and finance at the University of Michigan’s Flint campus. He is best known as the creator and editor of the popular economics blog Carpe Diem. At AEI, Perry writes about economic and financial issues for American.com and the AEIdeas blog.

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