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JONES ACT IN THE US

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GIRNE AMERICAN UNIVERSITY

LOGISTIC&TRANSPORTATIONLECTURER: UMUT MEHMET

YÜRÜYEN PRESENTER:HASAN HUSAMETTİN ŞAĞBAN LECTURE:SEA TRANSPORTATION POLICY TOPIC :JONES ACT AND CABOTAGE SHIPMENTS IN THE

US

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OIL SPILL RESPONSE AND THE JONES ACT

Deepwater Horizon Confusion on Use of Foreign-Flag Vessels

• Much press on need to waive Jones Act to use foreign-flag vessels

• Jones Act was waived for Exxon Valdez spill based on national defense waiver

• Section 1117 of the Coast Guard Authorization Act of 1996 authorized the Coast Guard to approve temporary and emergency use of foreign-flag oil spill response vessels (OSRVs)

• After much confusion, Coast Guard determined on June 16, 2010 that there were insufficient U.S.-flag OSRVs available and on June 18 published a fact sheet

OIL SPILL RESPONSE AND THE JONES ACT(continued…)

The Jones Act and Coastwise Laws• The coastwise merchandise statute (commonly

known as the Jones Act), provides that no merchandise shall be transported between “points” in the United States embraced within the coastwise laws (loaded and unloaded), unless the vessel is coastwise qualified

• Customs and Border Protection has ruled that skimming and transporting oil is the transportation of merchandise

• The Jones Act applies to “coastwise points” in waters shoreward of the U.S. territorial sea (3 nautical miles) boundary

• The Outer Continental Shelf Lands Act extends the Jones Act to artificial islands, installations, and other devices permanently or temporarily attached to the seabed of the Outer Continental Shelf (OCS) for the purpose of exploring for, developing, or producing resources of the OCS

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OIL SPILL RESPONSE AND THE JONES ACT(continued…)

National Defense Waivers

• A Jones Act waiver may be granted by the Secretary of the Department of Homeland Security (DHS) when the Secretary deems it is necessary to the interests of “National Defense”

• DHS consults with the Maritime Administration, Department of Energy, and Department of Defense

• Historically, waivers only granted due to catastrophic or extreme circumstances such as hurricanes, oil spills, or an immediate energy shortage

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OIL SPILL RESPONSE AND THE JONES ACT(continued…)

Federal On-Scene Coordinator (FOSC) Determination of a Shortage ofU.S.-Flag OSRVs

• In times of emergency, FOSC may allow foreign-flag OSRVs to operate in U.S. waters on a temporary basis for the purposes of “recovering, transporting, and unloading in a United States port” oil recovered from or near U.S. waters as long as: o there is a determination that there are not

enough U.S.-flag OSRVs to sufficiently perform the oil spill response operations, and

o the country of the foreign-flag OSRV must extend the same privileges to U.S.-flag OSRVs

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WORKERS’ COMPENSATION

State Workers CompensationFederal Workers CompensationLongshore Act CompensationJones Act

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Workers Compensation

No FaultUsually 2/3 wagesCourse and Scope of EmploymentPermanent Partial Disability AwardsNo Pain and SufferingNo Lawsuit for Benefits

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Jones Act StatusSubstantial Connection to a

Vessel of Sufficient Nature and Duration

Vessel in Navigation

Performs a Function that Helps to Accomplish the Mission of the Vessel

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On the Job Injury

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Jones Act vs. Workers Comp

Must sue to get benefitsMust prove negligence or

unseaworthinessFull Wage Loss, Past and Future,

RecoverablePain and Suffering RecoverableMaintenance and Cure RecoverableRight to Jury Trial

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Seaman Causes of Action

Negligence (Jones Act)

Unseaworthiness

Maintenance and Cure

Attorney’s Fees

Damages for Failure to Pay Maintenance and Cure

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THANK YOU FOR LISTENING