OSV Operators Await Changes to Jones Act
Operators of Offshore Service Vessels (OSV) supporting the offshore energy production industry are awaiting changes to recent Jones Act rulings from U.S. Customs and Border Protection.
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The Jones Act is a maritime law, which states (among other things) that only ships built in American shipyards and that are owned and crewed by Americans have the right to transport cargo between U.S. ports. Recently, U.S. Customs and Border Protection (CBP) approved waivers that allowed certain foreign vessels to transport and install oilfield equipment in U.S. waters. Last summer, CBP announced plans to modify 20 rulings in order to restore the original intent of the Jones Act, which is to protect the U.S. maritime industry from foreign competition.
The CBP said it recognized the fact that “allowing foreign-flagged vessels to transport merchandise from one U.S. point and install that merchandise at another point on the condition that it merely be accomplished on or from that vessel would be contrary to the legislative intent” of the Jones Act.
Under the modified rulings, foreign vessels will still be able to install oilfield equipment, but they will no longer be allowed to transport the equipment from U.S. ports to the installation site. The previous rulings allowed foreign vessels to carry equipment to offshore oil and gas facilities as long as the same vessel installed it.
Maritime laws like the Jones Act are unusual because they are based on common law rather than statutory law. Unlike statutory law, which is enacted by the legislature, judges determine common law. So as judges interpret and clarify maritime laws differently than their predecessors, the application of these laws changes over time.
The ongoing change in maritime laws is particularly evident in the most frequently contested aspect to the Jones Act the special rights it gives to seamen who are injured while in service to a vessel. If you’re a seaman who has been injured while in service to a vessel, engaging an experienced maritime lawyer or Jones Act lawyer is the only way to ensure you’re being represented by someone who is knowledgeable about all the changes to the laws affecting your case.
