The Jones Act Makes Shipping More Expensive? | Whats Going on With Shipping Reacts | Better Call Sal

Better Call Sal Reaction to John Stossel's The Jones Act Makes Shipping More Expensive.
What's Going on With Shipping
February 28, 2023
In this episode, Sal Mercogliano - maritime historian at Campbell University (@campbelledu) and former merchant mariner - reacts to the recent StosselTV video on The Jones Act Makes Shipping More Expensive.
#supplychain #jonesact #Stossel #shipping #puertorico #lng #tanker #container #shipping
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[@johnbrossack3791]

You hit on a subject near and dear to my heart... Korean companies using sub-contractors for labor or entire fabrication of a product. In the early '00's we did a world-wide bid for ASME Section VIII, CR-MO alloy pressure vessels for a project. A Korean company won the bid and was awarded the contract. That Korean company did NOT reveal to us that they would be using sub-contractors to fabricate these vessels. To keep a really, really long story short, once the vessels were received at the US sites, Positive Material Identification revealed that the welds were not CR-MO, but carbon steel, which made the vessels useless and the vessels had to be replaced. LOTS of $$$ and a big schedule delay. The reason? The Korean prime contractor did not monitor their subcontractor for quality. Buyer beware.

[@williamgibb5557]

Who paid for the error?

[@johnbrossack3791]

@@williamgibb5557 We (the company) did, then turned it over to the lawyers. I never heard what the outcome was, after the new vessels were fabricated in Spain, and Installed, I was assigned to another project. I did have to give a deposition a year later, but that was the end of my involvement.

[@williammoreno2378]

787 issues ring a bell?

[@84Actionjack]

On your opening point: Why did the governor petition Biden to waive the Jones Act if there was plenty of fuel and why did Biden eventually relent?

[@wgowshipping]

Because he would have been booted out of office for going against a Jones Act waiver. Check out my earlier videos on this.

[@brendanl9937]

Unfortunately, he bent over for the political narrative. At the end of the day he still is a politician.

[@84Actionjack]

@@wgowshipping Seen them. Where's the answer to the first part? Why was the governor petitioning Biden? Is this a dodge?

[@m.s.9744]

​@@84ActionjackSal dodged your question quicker than Neo dodges bullets😂😂😂

[@Desh727]

​@@84Actionjackthe answer was in the video

[@allangibson8494]

And the problem is that the US doesn’t have an international merchant marine. It’s gone. There are less than 100 US flagged civilian large ships. The Jones Act has FAILED hard because it does nothing to ensure that ships calling in US ports adequately pay their crews.

[@bradthorne7581]

As soon as I saw this I was looking forward to your reaction. I generally agree with John, but I wanted to hear your expertise

[@wgowshipping]

Thanks!

[@RobDeHaven]

This is exactly what I was hoping for! I made the call and Sal answered. Thanks!

[@wgowshipping]

Glad I could help!

[@QuizmasterLaw]

SAME HERE

[@waltergonzalez3820]

I enjoyed this video very much. So loaded with information. Thank you, Sal!

[@jimsimmons4586]

Sal, you've been critical of the state of the Military Sealift Command, the American maritime fleet, and the (lack of) American shipbuilding capacity. IMO, persuasively. But that leads me to this question: does the Jones Act achieve its goals? To the extent the answer is no, what changes would you recommend?

[@wgowshipping]

What the Ship (Ep 64) | 5 Initiatives to Revise the U.S. Maritime Industry | Better Call Sal kzbin.info/www/bejne/rHWmZ3R-fpWVn7M

[@brianellis3697]

Was just about to send John a link to your Peter Zeihan commentary, since as much as I like John, he totally ignored any history of the act. Thanks for addressing this so fast.

[@kennethfisher7013]

Having someone from the Cato Institute block you is a real feather in your cap.

[@will5286]

Sal-thanks again for a great vid. Most people are ignorant and disinterested about anything beyond their immediate lives and are easily manipulated-I appreciate you voice of clarity-hopefully some will get it. I can't help but draw parallels to the US giving away so much of our economic activity through PPP , NAFTA etc.-result-aggressive China and many American's without the good jobs the help give self-esteem. Corporate interests win again.

[@corvanna4438]

Jon Stossel is being dishonest?! I am truly shocked...

[@Matt-ru5rw]

🤣🤣🤣🤣

[@Thomas-wn7cl]

Many of the parts in "American cars" are foreign. More and more "American" brands are made in Mexico now. Much of the alleged innovation has been cost and quality cutting measures.

[@brendanl9937]

Ugh the lack of investigation by journalists on this subject is extreamly frustrating. Thank you Dr. Mercogliano for your continued and informed discussion on the manner. It's ridiculous in that I'm seeing both Left and Ring wing media sources really showing their lack of professionalism and a strive for clicks instead of publishing truthful and authentic reports.

[@erikjohnson3255]

That frustrates me, too. None of them are researching anything.

[@brendanl9937]

​@@erikjohnson3255 Exactly. This is the primary reason why i'm now longer watching mainstream news anymore including CNN, Fox, MSNBC, etc. It sucks to say, but they dictate the narrative. KZbin surprisingly has become an important resource in getting and receiving quality and professional subject analysis and reporting.

[@jimmyrk3]

Does John Stossel even qualify as a journalist?

[@tedmoss]

None of them have ever published completely truthful reports, why start now?

[@77thTrombone]

@@jimmyrk3 not the way he talks-condescending and spiteful, and I just passed the 3-minute mark where Sal is only a few seconds into stossel's apparent rantcast.

[@charlespratt9766]

Talk about the Canadian Bayside railway. American seafoods way around the Jones act.

[@juggy666]

Another awesome vid, I can't believe I'm now so interested in shipping. Sal, you will always be more Hank Schrader than Saul for me.

[@wgowshipping]

🤣

[@bcarrico329]

Not a Breaking Bad reference, but I was thinking Kevin O'Leary. The voice is similar.

[@PresAlexWhit]

I watched John Stossel's video and after looking up the Merchant Marine Act of 1920, I was led to your channel and learned about it. I subbed and will watch more of your content. Thank you!

[@bernarrcoletta7419]

LOL! I saw that video on a news feed, and the first thing that went through my mind was: “You better call Sal.”

[@marinablueGS]

Sal, you are magnificent! You should be on the national news!

[@cockula776]

Seriously! Better Call Sal should be a thing on TV, and battle cry!

[@campbellpaul]

We have to protect our national treasures, and you, Sal, are one of them! Great video, my friend 🤙

[@TheMitchyb61]

Lol come on John, give Sal that super thanks!

[@anthonyroberts7987]

Once again you contribute so much to our information and knowledge base on this (and other) strategic, fundamental issues. If only stossel and other "journalists" would be so attentive to data and to being truthful. I'm honored to be a Patron of this superb channel!

[@durrenbt]

Sal you fucking rule dude. This channel is awesome. Wishing you much continued success.

[@theknifedude1881]

It’s all about “Clicks”! It’s the same reason Tesla is the brand mentioned if there is an accident. Any and all other brands are ignored. Also the other brands advertise and Tesla doesn’t. Love your channel.

[@ThistleSeed1953]

Love it when Sal's hair bursts into flames! Seems to me that without the Jones act, shipping would be in the same life raft as our ports being without dedicated dredges.

[@m.s.9744]

If the fuel wasn't in short supply and not needed then no one would have purchased it. That foreign vessel would have remained offshore even after the Jones Act was temporarily lifted because no one would paid for fuel they did not need. This is proof that there was indeed a fuel shortage

[@danielch6662]

17:01 Great Britain, France, the Netherlands, Germany, do not have the Jones Act. The US does. Worldwide, 40% of shipyards have closed. In the US, 65% has closed. THE JONES ACT DOESN'T WORK! It makes remote life in remote communities harder and more expensive. Yes, for national security, you might want a shipbuilding, and shipping industry that is local. But it is unconscionable that national security needs for everybody in the country should be financed exclusively on the backs of small remote communities. It doesn't work, and it is unfair that poorer communities should pay for it. Just subsidised it directly from national taxes.

[@wgowshipping]

Transportation to small remote communities is always more expensive, whether it is an island, in the mountains or across the plains. What is your source for the 65%? There is a need for maritime reform, no question. However repealing the Jones Act does not guarantee what you think.

[@tedmoss]

Where's a junkyard dog when you need one?... Let's call Sal!

[@keithpedersen3653]

Because de-regulating the airlines and the railroads has worked so well for the common man ... and making more wealth never costs lives or national security. I'm *so* glad tye US economy depends critically on TSMC and COSCO. I'm *so* glad someone else has a bugger boat.

[@anonymousAJ]

25:30 "Why didn't you get a long-term contract to get a reliable supply of gas or whatever you needed to run your plants?" That's a financial solution to a physical problem. If they don't have enough ability to bring molecules of fuel into the region, the contract is obviously no solution.

[@anonymousAJ]

Would you admit the Jones Act does make US shipping more expensive, but argue that we benefit in terms of reliability and security Is that a fair summary?

[@wgowshipping]

It is impossible to argue that using nearly anything American does not make it more expensive. But the question is what do you get with those savings? I stated that we need to revise our maritime laws. I just don't think a repeal is the solution.

[@robertdavis7341]

Great report Sal!

[@darioman69]

Up yours John and Scott

[@iainsanders4775]

Trouble with Americans is - they often call each other liars. More trouble is - that's often right..🙄🙄

[@kavemanthewoodbutcher]

The more I watch/listen through Dr. Capt. Mercogliano the Magnificent, the more i realize this guy is an oak. Strong, solid, reliable, and incredibly good at throwing shade.

[@juliusjames6229]

Wow, i appreciate your take on this. Really eye opening

[@DduarteCT]

Great vídeo, thanks to the US for rebuilding our industry after the war 🇪🇺🇺🇲

[@pinkladybikermamma3603]

SET THE RECORDS STRAIGHT, SAL.

[@ajobdunwell2585]

Puerto Rico has had power problems for a long time. I lived in Fajardo 20 years ago and the power would go out regularly, they would shut down the local pump station for a few hours every day to take some of the load off the grid. The hotels on the island have backup generators and water.

[@richberkowitz7416]

Thanks!

[@wgowshipping]

Rich...thank you so much. Your support is much appreciated!

[@kathleenriveraspencer4136]

love your knowledge and how you share it with laypersons like me …thank you

[@chriscodrington5464]

Breath of fresh air, Sal, nice job!

[@AllNighterHeider]

Thanks Sal

[@MichaelMcCausland-pg6qs]

Well done

[@calparsons2502]

Good rebuttal !!

[@QuizmasterLaw]

this IS Peter Zeihan's fault. Thereto: "PETER ZEIHAN IS WRONG: HERE'S WHY"

[@andypreiser5919]

Sal you make great points on the video. Keep up the good work!!

[@jeffbangkok]

Good evening Sal

[@wgowshipping]

Good morning!

[@databang]

Good to know the nuance, thanks!

[@MichaelMcCausland-pg6qs]

Wonderful explanation of the truth

[@HandymanKurt]

Just saw the Stossel report, had to get here and see Sals comment.

[@GranpaTruck]

Why doesn't John look at domestic trucking?Or trucking in Canadacrossing the border? The last Land Line Magazine figures i saw state 65% of over the road truckers are foreign born nationals, working 70 hours a week for no overtime and benefits for less then minimum wage so he can have free shippimg. Sal you are 100% right on this. Waving the Jones Act would open the flood gates to a business led takeover of the interstate shipping routes utilizing indentured servants from overseas.

[@anonymousAJ]

18:00 The fact that we subsidize interstate highway systems (and other land transportation) is the big detriment to US maritime The libertarians have a good answer for that one: stop the subsidy Ludwig von Mises talked about how interventionism creates problems, and the proper solution is to stop the intervention but governments use the problems to justify further interventions (a particularly nerdy but I think apt term is "iatrogenic escalation", iatrogenic from the medical context where the purported treatment causes the disease)

[@Matt-ru5rw]

You gonna start measuring skulls also? Mises and the Austrian school are dupes and morons who came up with Billionaire talking points and the mises institute is subsidized by the kochs. Libertarians are some of the most blind people on the planet.

[@breft3416]

Thanks, Sal! Why do I suspect John and Scott know exactly what you know?

[@markodeen4105]

It's actually a "Sal signnal", not the old "Bat signal"

[@benjaminzabriskie5729]

Sal, You need to make the podcast rounds and explain to folks just how diluted our maritime position is. Multiple other nations are building Naval, and shipping capacities with the express purpose of weakening our national security. Libertarian's should appreciate more then anybody how the jones act supports American security by creating a simple requirement that should create security; can you imagine the amount of bureaucracy that would be required to do this if the American market wasn't doing it. Keep up the good work and fighting for our national security

[@tedmoss]

This goes along with the idea of being careful what you wish for; other countries will end up paying the bill for maritime security and they won't like it.

[@anthonyroberts7987]

Brilliant!

[@wgowshipping]

You are too kind and generous. Thank you for your support!

[@seanpruitt6801]

THANK YOU, I watched this video and it made my blood boil. The comment section was saying “this is why you should never trust the government 🤓” it makes me so upset.

[@jeffshriber6120]

The problem I have with this argument for the Jones act, is the USA doesn't not make merchant ships in America anymore, and haven't since 1950. So althoe the Jones act was created in 1920 to protect American workers, it actually hurts us, because we can't deliver merchandise in American ports by any ships is because we don't have American made ships to do it so anything else is forbidden due to the Jones act. So we can either start making American made ships and have them American owned, or use American flagged regardless of where they were made. Shipping in American rivers, lakes, Baltimore ect is 12 percent more efficient then trucks and very very efficient due to hydrodynamics.

[@amariner5]

Thanks Dr. Sal for your defense.

[@galvint2]

Instead of the Bat Signal, Sal should have the Jones Act Signal

[@mattguey-lee4845]

People forget that stuff has to compete on the global market. If we repealed the Jones Act then all commercial ship building in the US would go overseas. i agree to your point that the US needs some commercial ship building to help move military supplies in a time of war. Also imagine the Staten Island Ferry being run by a Filipino company.

[@SteamCrane]

It happened to P+O ferries in the UK.

[@johnkubik8559]

The first most efficient to carry liquids in the country is pipelines, the second is by ship, the third is by rail and the fourth by trucks. For some reasons the pipelines building is a big no no, the ships under Jones act are not some kind of NGO rescue ships, they just carry fuel whithin the US. Foreign ships might found it a lot more profitebal to brink fuel to devestated areas, charging the NGO for it. It still has nothing to do with the Jones Act.

[@jeromewelch7409]

Thank you Sal you came through brother…. Perhaps it's not too late congress just passed the Chip-act $50 billion perhaps we can do a ship act for $50 billion…. localization is coming?!

[@QuizmasterLaw]

I saw this video and immediately thought BETTER CALL SAL!

[@LumpyinAZ]

I'm stunned by the lack of research on Stossel's part.

[@Matt-ru5rw]

Maybe this is more of a feature of his commentary than an exception.

[@mrjumbly2338]

Love that you are hot on it!

[@captiannemo1587]

Ha, I saw that video… the comments section was full of idiots… was going to send it but you already got there.

[@anonymousAJ]

26:00 Is he just now figuring out what lobbyists do? No, Stossel has been pretty critical of lobbyists in many industries. I'm pretty sure he knows the deal

[@Matt-ru5rw]

I'm sure there was some good money behind that hack report.

[@erikjohnson3255]

Jennifer and her crew at AWO are great advocates for the Jones Act. I worked with them when ringing in Subchapter M for Towing vessels.

[@recycle343]

Thank you for your work, it's interesting how you got started, where would you be if the evergreen did not go aground and you started this channel. where would we be.

[@wgowshipping]

No idea Tom!

[@Matt-ru5rw]

God doing for us. 🤣🤣🤣

[@stefanratkiewicz]

This video reinforces my Disgust for Lobbyists.

[@tim1398]

Corporations will happily throw the country under a bus, all day, every day, to make a little extra profit. We see it all the time. Regulation is needed.

[@pif4347]

If I’m not mistaken, many of China’s cargo ships are equipped for combat and carry weaponry.

[@mgv00]

Glad you addressed this. You should interview him and school him on the Jones Act.

[@MR2Davjohn]

Thanks Sal. I like TimBatSea. I watch him often.

[@kevinjones6924]

Stupid name??😳😳😳 I used to like you Sal! 🤣😅😂 Great video Sal!

[@mikegallegos7]

I remember the acronym GMC being turned into, Government Motors Corporation.

[@robertwazniak9495]

That ship off PR is a carpet bagger. The same type of person that charges $5000 for a generator the day after a hurricane when the day before it was $500.

[@assertivekarma1909]

Another impressive episode. Besides subsidies, or domestic tariffs/quotas, we could always add a law that if war occurs, whereby we were unprepared to respond with necessary industrial capacity, especially against a country we allowed to take over our manufacturing/skilled industry, that anyone who supported such policies will be fined/taxed to impoverishment, and their of-age family members will be automatically drafted to the front lines of said conflict.

[@sevrent2811]

The big fact we have to deal with, is that U.S commercial shipbuilding is severely atrophied. Totally not enough for the needs of the country. and its unlikely we'll be able to get it running again to fulfill our needs. Why not buy foreign ships second hand, and have US crews and flags on them? otherwise will we just have to deal with a paltry sealift/commercial shipping for the foreseeable future?

[@robpeters5204]

I believe New York won’t permit a Pipeline is because of the water table being destroyed especially the northern part closer to the Canadian border.

[@thishominid871]

7:10 that fact that all regulated industries pay officials for favorable regulations does not make it a good thing.

[@jeebus6263]

Safe Legal and Rare, just like Sal :)

[@joseruiz7822]

the 190 shipped docked offshore wasn’t the foreign carriers fault. It was the inability of the ports to work the ships and clear up the que.. the ports weren’t able to clear the backlog because their terminals were full, their terminals were full due in part to the rail’s inability to move to the inland points.. defending the jones act is terrible. Lol using “dedicated” in leu of “monopoly” is total BS. I’d love to talk about this topic.

[@denitaly96]

please all they want is to have the monopoly of shipping in PR so every thing 3 times more than the mainland

[@drewkossen9324]

Since there was a disruption in the jones act continuium it was only a matter of time before you made a response

[@jimjackson1087]

The basic concept of the law is to protect labor unions in the US . The truth is the law inhibits innovation in the US maritime industry, discourages long term investment in the industry, all to protect wages and government tax revenue.

[@Danno1983]

Ive nva heard of the Jones Act

[@RobertSzasz]

The "efficiency" they talk of is the ability to exploit workers and conduct unsafe operations. It's how much money owners can extract, not how much useful work gets done.

[@eurobrowarriormonk7182]

Marx would be proud. Take a bow oppressed worker

[@Matt-ru5rw]

​@@eurobrowarriormonk7182 If that is all you got then you aren't very bright. I'm not a lefty at all but Bing a middle aged American if you can't see that corporations exploit workers in all sectors then your blind or willfully ignorant. And if you think any Billionaire doesn't have their hand out for that good guvment money then you're just a sucker.

[@Matt-ru5rw]

Yep.

[@eurobrowarriormonk7182]

@@Matt-ru5rw where did say people do not have their hand out. thats exactly my point midwit. I see a lot of workers exploiting employers . dont worry you have no reason to argue. Your worldview has already won but the results will just be more of the same. more and more poverty as the marxist worldview works its magic.oh and corporations are government created entities. Thing is america is corrupt, immoral and marxist through and through and its not just the billionaires . its all the way from the top to the bottom. like i said you already won. so enjoy the victory

[@eurobrowarriormonk7182]

@@Matt-ru5rw america will not survive. Deadliest combination of 50 years of marxist propoganda and dumber than a bag of shit. Marxist propoganda works the best when a people have rejected God and no longer have morals. It works of the principle of greed and envy. this class act here who is thoroughly indoctrinated and probably sings the national anthem and thinks he believes in freedom. sad

[@anonymousAJ]

You were very critical of Cato (fair enough) but what industry do you imagine is bankrolling them? It seems obvious that the pro-Jones Act side is motivated at least in part by special interests (i.e. they benefit financially by excluding foreign competition) It does not seem so obvious to me that the anti-Jones Act side is motivated by special rather than general interests It seems as though the Cato folks oppose the Jones Act because they think it's too costly for the nation, not because they will be enriched at the expense of the public in the event that it is repealed Or do you know something about their donors that I don't?

[@Matt-ru5rw]

I'm guessing oil and gas companies so they can ship it even cheaper and make more profit.

[@anonymousAJ]

@@Matt-ru5rw Cheaper shipping of oil and gas = cheaper energy for the ordinary person

[@maryistulsafox]

Remember, anything federal they want to get rid of, but also hope the federal government Default and shut down like an old mall.

[@emaw5425]

Two things 1. I appreciate your insight into the history of shipping and the Jones Act. Information is important. 2. How many wrestlers will Campbell qualify for the NCAA Men's Wresting Tournament?

[@leehanna4929]

So Mr. Stossel and the Kato Institute think competition always improves things. Tell that to the US iron and steel industry!

[@iannarita9816]

Last I looked neither Japan nor the Republic of Korea (South Korea) were members of NATO. Also about NY and natural gas,why not use rail?

[@who2u333]

I love videos that point out misinformation.

[@lenwhatever4187]

people will lie to make money... the bigger the money, the bigger the lie. Not one of these businesses cares for the US or any other country. They would be just as happy for the US to totally fail as to prosper so long as they can make a bit more. US car manufactures had trouble because their cars lasted too long... to compete they had to lower the quality to sell them cheaper. A car half-life used to be 20years (half of a years models were still on the road 20 years after they were made) Now that is closer to 7 years. Todays 10 year old car is a "push, pull or drag your old car in for $1500" car. I wonder which model is better for our environment.

[@petermargie]

Were you yelling at the computer the first time you watched Stossel’s segment? 🤣 Have you heard from John Stossel?

[@wgowshipping]

Yes and No!

[@drgnfr20]

Media spin is out of hand these days I really wish we could get some sort of integrity in news. I think if you knowingly and maliciously spread falsity you should no longer be able to call your show news.

[@mikemanning3025]

Once again Professor I M., ya did your research before opening, with FACTS, on subject at hand!!! It really awful on digestion to listen to politically centered, biased gobbledygook coming from these 2 yes men, especially the "bearded one" w/ the sing song crap!! I'd have to be well paid, as I would presume these characters are, to spout such one-sided.B.S. Boy, sure had to edit myself after hearing those two. By way, the gal was difficult two, don't get me wrong! THANKS SAL, for another fine rundown on topic at hand, Mike from Delaware

[@MichaelMcCausland-pg6qs]

Boom Boom Boom we have a way around