Summary
Two recent accidents involving U.S. barges have highlighted issues with the American shipping system, which relies heavily on barges instead of modern ships due to an old law known as the Jones Act. This law makes it expensive to build ships in the U.S., pushing shippers to use slower barges for transporting goods between U.S. ports.
Key Facts
- A barge carrying almost 200 containers ran aground in the Bahamas, leading to looting of its cargo.
- Another barge from Alaska to Seattle started taking on water but was stabilized in time.
- Both accidents reveal problems with the U.S. supply chain's reliance on barges.
- The Jones Act of 1920 requires goods moved between U.S. ports to be on U.S.-built ships, which are costly.
- U.S.-built ships are much more expensive than ships built in countries like Japan and South Korea.
- Barge use has increased because it is cheaper to use them than expensive U.S.-built ships.
- The U.S. Virgin Islands are an exception to the Jones Act, allowing modern shipping methods.
