The Merchant Marine Act of 1920, also known as the Jones Act, regulates maritime commerce in the United States, specifically between American ports. One requirement of this law, now 105 years old, is that all goods transported by water from one U.S. port to another must be carried by ships that were constructed in the United States and which fly the American flag. This practice of shipping between U.S. ports - shipping between two points in the same country is called "cabotage" - was, of course, a much different proposition in 1920 than it is today.

Now, the law is causing problems, not least of which is in Alaska, in part because of the size of the Great Land.

“Alaska is facing an acute energy shortage,” Myers told a State Senate Transportation Committee. “The Alaska Department of Natural Resources has projected shortfalls in the Cook Inlet natural gas supply beginning in the very near future.”

The Railbelt grid provides electricity to more than 75% of the state’s population. Over 70% of that electricity is generated with natural gas, primarily from Cook Inlet. There are concerns that current production in the inlet could start to experience shortfalls by 2027.

Thankfully, Alaska is rich in liquid natural gas. Getting it to consumers is the hard part. The North Slope reserves, for example, are plentiful but far removed from population centers, and a proposed pipeline project has struggled to find financial backing. It would also take time to complete.

Interesting, that Alaska, one of the most energy-rich states in the union, should have problems with a shortage of natural gas, but Anchorage - home to over half of the state's population - is dependent on Cook Inlet gas, as there is no direct pipeline from the North Slope fields to the city.

“As such, various utilities are now discussing liquefied natural gas imports to solve the crisis,” Myers said. “Alaska is in a unique quandary in which it prides itself on its oil and gas resources yet is unable to utilize its own natural gas from the North Slope gas fields.”

The simplest, most cost-effective solution would be to transport liquid natural gas from more remote parts of the state to Alaska’s population centers by sea. The problem is that there are no Jones-Act-compliant tankers capable of transporting the fossil fuel at scale, making it illegal for Alaska to ship its own gas to its residents.

Supporters of the Jones Act cite national security exigencies for preventing shipping between U.S. ports from being dominated by foreign vessels. The solution could be as easy as a congressional waiver.

This is a great example of a law that has largely outlived its usefulness.

See Also: An Open Letter: President Trump, Will You Come to Alaska?

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In 1920, the American merchant fleet carried 30,000 deadweight tons, or 30 percent of the world total. Today, the American merchant fleet carries about nine percent of the global deadweight tonnage. Shipping in 1920 was a very different picture, globally, than now.

Alaska's immediate problem could be resolved by a waiver to the Jones Act. It's been done before. A better solution would be to repeal the Jones Act and let cargo be carried between U.S. ports by ships of friendly trade partners.

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