More regulatory capture.
"We used to pay just over $4,000 to ship a 40-foot freezer container to Dubai,” says Novak, who says exports made up about 70 percent of his sales. “In a matter of three years, shipping the same container now costs $11,500. How do you tell your customer on the other side that your shipping costs have almost tripled? It wiped us out.”
Novak believes businesses have difficulty surviving in Hawaii largely due to the high shipping costs. For that, he blames The Jones Act, also known as The Merchant Marine Act of 1920.
“I’m sure there was some good intention and purpose for (The Jones Act) back then. But I would like to know one good reason that it is a good thing for Hawaii and its people today,” he says.
Under the act, vessels that transport cargo or passengers between two U.S. ports must be U.S. flagged, U.S. crewed, U.S. owned and U.S. built. Those rules apply to any ship that brings cargo to Hawaii from the U.S. West Coast – the main lifeline of goods for the Islands.
Foreign carriers cannot compete under those rules, and opponents say the lack of competition drives up the cost of shipping and contributes to Hawaii’s high cost of living."
http://www.hawaiibusiness.com/keeping-up-with-the-jones-act/
"We used to pay just over $4,000 to ship a 40-foot freezer container to Dubai,” says Novak, who says exports made up about 70 percent of his sales. “In a matter of three years, shipping the same container now costs $11,500. How do you tell your customer on the other side that your shipping costs have almost tripled? It wiped us out.”
Novak believes businesses have difficulty surviving in Hawaii largely due to the high shipping costs. For that, he blames The Jones Act, also known as The Merchant Marine Act of 1920.
“I’m sure there was some good intention and purpose for (The Jones Act) back then. But I would like to know one good reason that it is a good thing for Hawaii and its people today,” he says.
Under the act, vessels that transport cargo or passengers between two U.S. ports must be U.S. flagged, U.S. crewed, U.S. owned and U.S. built. Those rules apply to any ship that brings cargo to Hawaii from the U.S. West Coast – the main lifeline of goods for the Islands.
Foreign carriers cannot compete under those rules, and opponents say the lack of competition drives up the cost of shipping and contributes to Hawaii’s high cost of living."
http://www.hawaiibusiness.com/keeping-up-with-the-jones-act/