The Jones Act requires that all goods transported by water between U.S. ports be carried in U.S.-flag ships, constructed in the United States, owned by U.S. citizens, and crewed by U.S. citizens and U.S. permanent residents.
The Coast Guard is proposing changes in regulations to clarify the requirements for rebuilding Jones Act ships at U.S. shipyards.
The proposed changes stem from a bitter dispute over the rebuilding of a Matson Navigation ship in a yard in China. Groups including the Shipbuilders Council of America complained that the amount of work being done exceeded Coast Guard limits of the amount of foreign rebuilding that can be done while still keeping the ship qualified for Jones Act service.