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Jones Act of 1920 slows clean-up of BP oil spill in Gulf and Louisiana coast

A Coast Guard boat collects oil from the Gulf of Mexico absent help from Europe's world-class ships.
A Coast Guard boat collects oil from the Gulf of Mexico absent help from Europe's world-class ships.
( AP Photo/Dave Martin)

The clean-up of the largest environmental disaster in history has been hampered by a 90-year-old law known as the Jones Act of 1920. The Act is preventing the world’s best clean-up ships and experts from helping to eradicate the oil spilled in the Gulf of Mexico following the explosion and collapse of a drill operated by British Petroleum (BP).

The Standard, a Belgian newspaper, has called out the situation claiming that, if given a green light, European companies working alone could have the oil cleaned-up in four months.

If they were able to work with American firms, the clean-up time would be lowered to three month. Currently BP is estimating a nine month clean-up given the fact they can only work with American companies because of the Jones Act.

The Jones Act of 1920 was passed by Congress to help rebuild the United States shipping business following World War I. It requires that all work-ships in US waters to have been built in the USA and that the crew be US citizens.

Mexico, Canada, Norway, and Belgium have all offered to help BP in the clean-up efforts. However their boats are not American-made and their experienced crews and experts are not US citizens. Over 7,000 meters of containment boom from Canada and Mexico and 10 sets of containment arms have been withheld from the clean-up because of the law. Experienced Dutch, Belgian, and Norwegian crews and their clean-up vessels have also been turned down.

The Jones Act can be overridden with a Presidential waiver, as it was to allow foreign ships to help reopen oil shipping lanes following Hurricane Katrina. Department of Homeland Security Michael Chertoff issued the temporary waiver without formal request.

However the White House says nobody has for the waiver in the case of the BP Spill and the White House does not see a need, according to White House Spokesman Robert Gibbs,

“If there is the need for any type of waiver, that would obviously be granted,” said Gibbs. “But, we've not had that problem thus far.”

Louisiana Governor Bobby Jindal is looking for all the help he can get as he sees the devastation the spill has had on the environment, jobs, the fishing industry, and tourism.

As we have seen with the dealing with the Canadian government in the addition of a second bridge connecting Detroit to Windsor, Ontario, governors are prohibited from entering into any agreements with foreign governments. Whether asking for a financing agreement to split bridge tolls or requesting Belgium clean-up vessels, the governors are not able to consummate any deals as only the federal government has that right.

Business perspective

From a business perspective the Jones Act of 1920 is a challenge for owners to review their own policies and procedures. In general, most procedures that have been in place, without change, for five years should be reviewed in light of new technology. It is almost certain that 90 year old policies need some tweaking – if not a major review.

Waiting for disasters to happen causes reactionary actions. The time to review these potentially outdated policies or procedures is when there is not an emergency. A simple governance or review committee could handle antiquated policies and procedures
 

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Detroit Business Development Examiner

Rick Weaver is an accomplished business executive with a wealth of experience in retail, market analysis, supply chain enhancement, and process...

Comments

  • Fred M. 1 year ago
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    THis is like Katrina all over again. A major disaster followed by finger pointing and no results. There is alot of help available and we should be taking it >>>> not turning it away.

  • Frank - Detroit Day Trader Examiner 1 year ago
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    With respect, I heard of the Jones Act of 1917 making Puerto Ricans U.S. citizens, but not a 1920 Act. I have also heard of separate Jones Act with reference to international shipping and the U.S. Where may I find this 1920 Act that you refer?

  • Ivy 1 year ago
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    FOX Noise and the Heritage Foundation have been at it again, making stuff up to scare and/or enrage people.

    The Jones Act (Merchant Marine Act of 1920) only regulates ship travel between U.S. ports. Bush waived it after Katrina to move oil from one American port to another. But the Jones act says nothing about bringing in foreign vessels for emergencies so there's no need for a waiver. In fact, they have been bringing in foreign rigs.

    Google "Media Matters: Fox & Friends misleads on international aid to Gulf spill" for the rest of the story.

  • Rick Weaver 1 year ago
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    Frank, The Jones Act of 1920 is also known as the Merchant Marine Act of 1920. Jones was a very active legislator and has several laws creditted to him.

  • Rick Weaver 1 year ago
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    Ivy, The Jones Act of 1920 had several parts, including the transport provisions you mention. It also covered disability payments for Merchant Marines AND SHIPS WORKING IN AMERICAN WATERS. It is this final piece that comes into play here as the clean up would be "ships working in US waters".

    By the way, this is not a Fox News or Heritage generated topic. It was first raised by The Standard of Belgium after Belgium clean-up ships were turned down by the US Coast Guard because of the Jones Act of 1920.

  • Tom T. 1 year ago
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    The Standaard (which actually has two "a"s in it, is hardly a publication tied to the right wing.

    THe Jones Act is protectionism at its worst. The Obama administration still has not waived it.

  • Lyman Duggan 1 year ago
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    Several Cleanup Vessels now enroute to the Gulf from Foreign Countries to help in this effort according to letter BP to US Coast Guard.

    www.deepwaterhorizonresponse.com/posted/2931/BP_Response_to_FOSC.657315.pdf

  • Lyman Duggan 1 year ago
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    Several Foreign Clean-up Ships apparently en route to the Gulf to assist. Letter is from BP to USCG but unable to post the URL here. I have posted elsewhere on Linkedin

  • sandy 1 year ago
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    3 months of oil gushing is BP's fault and 6 months is Obama's beause he would not sign a simple waiver

  • RL 1 year ago
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    Regardless of what the exact rules are to the Jones act,the
    simple fact is that we need a leader, doing something is almost always better than being too scared to do anything.
    The foriegn ships should and could be allowed to help us
    if the President would only let them.

  • Bonnie Finley 1 year ago
    Report Abuse

    How can this be! We need all the help we can get. I am amazed how many people do not know anything about this. The Media can elect a president but cannot give you information they don't want you to
    know! Something is terribly wrong...

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