Jones Act Has No Effect on Cost of Living in Hawaii, Study Says

Economists from Boston-based Reeve & Associates and Hawaii-based TZ Economics have released a joint report that concluded that the Jones Act has no significant impact on the cost of living in Hawaii.

The report, “The Impact of the Jones Act on Hawaii” released today by the American Maritime Partnership (AMP), found that freight rates in the U.S.-Hawaii trade lane have declined in real terms over the last 10 years, while the Jones Act has delivered positive and substantial economic contributions. This includes job creation, new infrastructure investments, and a reliable pipeline for critical consumer and industrial goods moving to and from the Islands.

A number of recent studies and articles have questioned the value of the Jones Act to Hawaii. Their claims of negative impact are not supported by the facts and ignore the examples of the positive role of the Jones Act, AMP said. In response, Reeve and TZ produced a fact-based analysis of recent developments in the U.S.-Hawaii liner shipping market in order to determine how and to what extent shipping services provided in that market impact the people and economy of Hawaii, AMP said…


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