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Jones Act Support Confirmed with Recent Executive Order

Jones Act, M&A, Private Equity, And Joint Ventures
January 28, 2021

President Biden’s executive order signed on January 25, 2021, not only flagged his support and commitment to the Jones Act, and a strong United States merchant fleet, but he also, when discussing the order, signaled the importance of the Jones Act “for America’s clean energy future and the development of offshore renewable energy.”

Domestic shipping industry leaders expressed their appreciation of President Biden’s support of the Jones Act, which imposes strict ownership and control requirements on owners and operators of vessels that provide any part of the transportation of merchandise by water between points in the United States.

In addition, with the passage of the National Defense Authorization Act for Fiscal Year 2021 and particularly Section 9503 thereof, the Jones Act now also applies to the carriage of goods to installations, such as offshore wind facilities, attached (permanently or temporarily) to the seabed of the United States continental shelf.

With the application of the Jones Act to the offshore renewable energy sector, industry stakeholders will now need to navigate a law adopted one hundred years ago with a very different industry in mind.

If you have any questions regarding the above, please contact your relationship partner at Seward & Kissel LLP.

The opinions expressed are those of the author(s) and do not necessarily reflect the views of the firm or its clients, or any of its or their respective affiliates. This article is for general information purposes and is not intended to be and should not be taken as legal advice.


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