San Juan, Puerto Rico—Resident Commissioner Pedro Pierluisi announced today that, given the increased concerns being expressed by his constituents about the Jones Act in light of Horizon Lines’ withdrawal from the Puerto Rico market, he will convene a forum in Puerto Rico to discuss the situation. For that reason, Pierluisi sent a letter today to the Commissioner of U.S. Customs and Border Protection (CBP) and the Administrator of the U.S. Maritime Administration (MARAD), inviting senior officials from each agency to attend this forum. The Resident Commissioner will also invite representatives from each of the Jones Act carriers that continue to provide service to Puerto Rico. In addition, Pierluisi will invite officials from the local government, business leaders, manufacturers, farmers, economists, and other stakeholders.
According to Pierluisi, this forum will allow for a discussion about whether there are particular products that, as a result of Horizon’s departure, will no longer be available in Puerto Rico, will no longer be delivered on a timely basis, or will only be available at higher cost.
In addition, current law authorizes the federal government to grant an administrative waiver to the Jones Act when such a waiver “is in the interest of national defense.”
“This forum will provide CBP and MARAD an opportunity to offer guidance regarding the legal procedure by which an individual or organization in Puerto Rico can request an administrative waiver from the Jones Act; the level of evidence that would need to be provided in order for the federal government to grant a waiver; and the respective roles of different federal agencies in the waiver process,” said Pierluisi.
The Jones Act requires that all maritime transport of cargo between U.S. ports be carried on vessels built in the United States, owned by U.S. citizens, and operated by U.S. citizen crews. Since its enactment nearly a century ago, the Jones Act has applied to Puerto Rico.
“Whether one is a proponent or a critic of the Jones Act, there can be no doubt that the Jones Act only serves its intended purpose if there are sufficient Jones Act-compliant vessels ready, willing and able to transport cargo between U.S. ports. As should be expected, many of my constituents are concerned that the departure of Horizon Lines will disrupt the marketplace, making it more onerous, time-consuming and costly to bring U.S. domestic products into Puerto Rico. Indeed, numerous businesses and consumers have already reported such disruption. At the same time, the remaining Jones Act carriers have indicated that they intend to increase the frequency and volume of their service to Puerto Rico and have requested meetings with my office to discuss the details of their plans,” said Pierluisi in his letter to CBP and MARAD.
“My constituents have raised important questions and concerns that require thoughtful and detailed answers from subject-matter experts. The forum I will convene is designed to facilitate this dialogue. According to GAO, as of June 2011, Horizon Lines transported products on a weekly basis between Puerto Rico and three U.S. ports: Elizabeth, New Jersey; Jacksonville, Florida; and Houston, Texas. Horizon Lines represented about 30 percent of the market share in Puerto Rico, and provided 38 percent (2,340 forty-foot equivalent units) of the total Jones Act capacity for Puerto Rico. My constituents are concerned about whether the remaining Jones Act carriers can fill the substantial gap left by Horizon’s departure, particularly in light of the fact that Horizon was the only non-barge carrier that provided direct service between New Jersey and Puerto Rico. My constituents want to understand whether these carriers can provide substantially equivalent service or if that service will vary in important respects, including in terms of the timing and cost of delivery,” added the Resident Commissioner.
“It is my hope that the federal government and the remaining Jones Act carriers can provide answers to my constituents’ reasonable questions, and I intend to provide the space and opportunity for this interchange to occur. My office will continue to work with your staffs to make logistical arrangements for the planned forum,” concluded Pierluisi in his letter.
Resident Commissioner will invite federal and local officials, representatives from carriers, and stakeholders on the island
Pierluisi to Convene Forum in Puerto Rico to Discuss Concerns About Jones Act in Wake of Horizon Lines Departure
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