The Jones Act and the Douglas-fir Region Softwood Lumber Industry in Perspective
Because of the Jones Act, foreign flagships cannot be used for intercoastal shipment of lumber in the United States. As a result, British Columbia producers have a transportation cost advantage in competing with west coast U.S. producers for east coast markets. In the context of the total competitive environment between the two areas, however, other factors--especially stumpage price differences--may override this advantage. If exempted from the Jones Act, Pacific Northwest softwood producers would have to prepare for assembly of cargo and development of east coast markets to take full advantage of lower-cost foreign flag vessels. Evaluation of the impact of the Jones Act should be within the context of the Act's objectives, the need for waterborne as opposed to other transportation modes, and the market forces which determine competition with British Columbia.
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Document Type: Journal Article
Affiliations: Principal Economist, Pacific Northwest Forest and Range Experiment Station, Portland, Oregon
Publication date: 01 October 1975