THE GEOGRAPHY OF TRANSPORT SYSTEMS


Issue Jones Act Market International Market
Vessel ownership US Ownership Any (large shipping companies)
Vessel registration USA Any (flags of convenience)
Shipyard US Located Any (mainly Asia)
Vessel crew US citizens Any (developing countries)
Vessel type Mostly coastal and river Mostly deepsea
Vessel trading privilege Cabotage within USA International shipments
Legal jurisdiction US Federal Court Country of registration
Taxation US corporate taxation system Mostly offshore
Barriers to entry Very high Low
Competition Statutory protection against foreign players Intensive / Oligopolistic

Source: adapted from B.M. Karatzas (2009) "A Primer on Leasing Transactions in the International Maritime Sector", Journal of Equipment Lease Financing, Vol. 27, No. 3, pp. 1-8.

The Jones Act and International Maritime Markets