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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Email: mercoglianosal@gmail.com
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Пікірлер: 331
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
Жыл бұрын
Who paid for the error?
@johnbrossack3791
Жыл бұрын
@@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
3 ай бұрын
787 issues ring a bell?
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.
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
Жыл бұрын
Because he would have been booted out of office for going against a Jones Act waiver. Check out my earlier videos on this.
@brendanl9937
Жыл бұрын
Unfortunately, he bent over for the political narrative. At the end of the day he still is a politician.
@84Actionjack
Жыл бұрын
@@wgowshipping Seen them. Where's the answer to the first part? Why was the governor petitioning Biden? Is this a dodge?
@m.s.9744
Жыл бұрын
@@84ActionjackSal dodged your question quicker than Neo dodges bullets😂😂😂
@Desh727
Ай бұрын
@@84Actionjackthe answer was in the video
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
Жыл бұрын
Thanks!
I enjoyed this video very much. So loaded with information. Thank you, Sal!
Having someone from the Cato Institute block you is a real feather in your cap.
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
Жыл бұрын
That frustrates me, too. None of them are researching anything.
@brendanl9937
Жыл бұрын
@@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. KZread surprisingly has become an important resource in getting and receiving quality and professional subject analysis and reporting.
@jimmyrk3
Жыл бұрын
Does John Stossel even qualify as a journalist?
@tedmoss
Жыл бұрын
None of them have ever published completely truthful reports, why start now?
@77thTrombone
Жыл бұрын
@@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.
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.
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
Жыл бұрын
What the Ship (Ep 64) | 5 Initiatives to Revise the U.S. Maritime Industry | Better Call Sal kzread.info/dash/bejne/qHh3mKOBeZPImbQ.html
LOL! I saw that video on a news feed, and the first thing that went through my mind was: “You better call Sal.”
This is exactly what I was hoping for! I made the call and Sal answered. Thanks!
@wgowshipping
Жыл бұрын
Glad I could help!
@QuizmasterLaw
Жыл бұрын
SAME HERE
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.
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!
We have to protect our national treasures, and you, Sal, are one of them! Great video, my friend 🤙
Sal, you are magnificent! You should be on the national news!
@cockula776
Жыл бұрын
Seriously! Better Call Sal should be a thing on TV, and battle cry!
Sal you fucking rule dude. This channel is awesome. Wishing you much continued success.
Jon Stossel is being dishonest?! I am truly shocked...
@Matt-ru5rw
Жыл бұрын
🤣🤣🤣🤣
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.
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
Жыл бұрын
🤣
@bcarrico329
Жыл бұрын
Not a Breaking Bad reference, but I was thinking Kevin O'Leary. The voice is similar.
Talk about the Canadian Bayside railway. American seafoods way around the Jones act.
Wow, i appreciate your take on this. Really eye opening
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.
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.
Breath of fresh air, Sal, nice job!
love your knowledge and how you share it with laypersons like me …thank you
Up yours John and Scott
Great report Sal!
Well done
Where's a junkyard dog when you need one?... Let's call Sal!
Good to know the nuance, thanks!
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
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.
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.
Great vídeo, thanks to the US for rebuilding our industry after the war 🇪🇺🇺🇲
Thanks!
@wgowshipping
Жыл бұрын
Rich...thank you so much. Your support is much appreciated!
Sal you make great points on the video. Keep up the good work!!
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!
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.
Wonderful explanation of the truth
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.
Thanks Sal
Thanks Dr. Sal for your defense.
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
Жыл бұрын
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.
Just saw the Stossel report, had to get here and see Sals comment.
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
Жыл бұрын
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.
Brilliant!
@wgowshipping
Жыл бұрын
You are too kind and generous. Thank you for your support!
Good evening Sal
@wgowshipping
Жыл бұрын
Good morning!
SET THE RECORDS STRAIGHT, SAL.
Lol come on John, give Sal that super thanks!
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
Жыл бұрын
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.
Trouble with Americans is - they often call each other liars. More trouble is - that's often right..🙄🙄
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.
Good rebuttal !!
Thanks, Sal! Why do I suspect John and Scott know exactly what you know?
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.
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
Жыл бұрын
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.
Instead of the Bat Signal, Sal should have the Jones Act Signal
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?!
Glad you addressed this. You should interview him and school him on the Jones Act.
The auto industry had to learn to deal with foreign competition. That's why American cars have improved greatly.
This video reinforces my Disgust for Lobbyists.
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?
this IS Peter Zeihan's fault. Thereto: "PETER ZEIHAN IS WRONG: HERE'S WHY"
I saw this video and immediately thought BETTER CALL SAL!
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.
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.
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.
It's actually a "Sal signnal", not the old "Bat signal"
I remember the acronym GMC being turned into, Government Motors Corporation.
I'm stunned by the lack of research on Stossel's part.
@Matt-ru5rw
Жыл бұрын
Maybe this is more of a feature of his commentary than an exception.
I love videos that point out misinformation.
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
Жыл бұрын
It happened to P+O ferries in the UK.
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
Жыл бұрын
No idea Tom!
@Matt-ru5rw
Жыл бұрын
God doing for us. 🤣🤣🤣
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.
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
Жыл бұрын
I'm sure there was some good money behind that hack report.
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.
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.
Crowley Maritime was the only company that complained when ThE Jones Act was temporarily lifted after hurricane Maria.
Soo.. you're saying Stossel is lying .. right? You should tell him that.
@wgowshipping
Жыл бұрын
I am saying he is wrong.
@Matt-ru5rw
Жыл бұрын
He knows he's lying. That's why he gets paid what he does.
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?
If I’m not mistaken, many of China’s cargo ships are equipped for combat and carry weaponry.
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.
Thanks Sal. I like TimBatSea. I watch him often.
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.
Love that you are hot on it!
please all they want is to have the monopoly of shipping in PR so every thing 3 times more than the mainland
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
Жыл бұрын
Marx would be proud. Take a bow oppressed worker
@Matt-ru5rw
Жыл бұрын
@@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
Жыл бұрын
Yep.
@eurobrowarriormonk7182
Жыл бұрын
@@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
Жыл бұрын
@@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
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.
Last defense and information was the best Campbell University is lucky to have you as a tenured professor. It makes you want to know more about your university
Since there was a disruption in the jones act continuium it was only a matter of time before you made a response
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.
Remember, anything federal they want to get rid of, but also hope the federal government Default and shut down like an old mall.
Sal “Jonesy” Mercogliano is on the case! The problem Stossel has is that he fails to understand “we don’t have fair and equitable trade” or shipping capability to support fair trade. It’s not fair competition so Johnny “Fair Trade” Stossel needs to bone up on the word “fair.” CATO “Unfair Trade Institute” needs to also bone up on “fair” and “trade” leaving our realities of our military providing security to trade for China, EU and many more. Or does Johnny want the pirates to help out shipping? You think most prices won’t go up with Pirates helping themselves?
I've almost always regarded myself as a fervent Stossel viewer, though this video has greatly informed me as to how framing and lack of expertise in a subject matter can sway opinion greatly.
So Mr. Stossel and the Kato Institute think competition always improves things. Tell that to the US iron and steel industry!
Excellent commentary Sal!
@wgowshipping
Жыл бұрын
Glad you enjoyed it!
The whole F-wording problem is not the Jones Act. The whole problem is the over-taxation and over-regulation of our own shipping industry. Do you really think shipping companies would take the risk of building and registering in sh$t holes if they could keep it all right here for a reasonable premium and not a huge, irrational premium?
@wgowshipping
Жыл бұрын
No!
@deshaunjackson8188
Жыл бұрын
That's fair. But it's called a flag of convenience for a reason. Those countries have looser labor laws (no minimum wage) and other very loose laws. It would be a bad look if the U.S had ships with their flag on it who employed sailors for 10 dollars a day. It's not like it would change anything. It would just be bad optics. And sal always likes to leave out the power of unions.
@darelboyer4215
Жыл бұрын
Rather, the whole Mother F-wording problem is the lack of financial accountability by the shippers. That indiviudals are allowed to hide behind limited liabilities and corporate personhood instead of being held personally accountable enables the irrational level of profit seeking that most people hate in big business. It's an accoutnability issue first and foremost; everything else is downstream.
@Adept893
Жыл бұрын
I really do not see how taxation and unions are the boogeyman in this situation. My head is exploding. Let's talk about how much of the GDP growth that has happen in say the last 50 years has been concentrated in a small part of the population. If the economy grows $10 in a year and $7 goes to Sal and you me and anti-union dude have to slip the other $3. This is what happen when income taxes were reduced. This is why you make shit money at a shit job. Because some financial anarchist ( read libritarian )told you at an impressionable age. Taxes are just dead weight loss to the economy. No. Your taxes are even when the go to Nicaragua to build houses are helping keep you safe ( preventing desperate people fleaing their homes and by extension migrating ( a classically destabilizing event throughout history ) ; if your taxes stay here and pay the lady at the DMV ; if the go to pay some of the wages for ship yard workers your tax dollars are strengthening The United States. As Perun lays out in his presentation on the defense industrial base that lasts out this argument in a more conjent fashion. Some portion of this revenue is recovered in taxes (on workers and corporation operating in the US) and services sold to these individual workers. Representing a savings to the government when buying locally (with in US) that is present but hard to quantitate. Basically keeping that money circulating inside the US is a good thing. If forgen ships are built operated and crewed by non-Americans we are giving money away to eather $7 Sal who can afford to gamble (ie. Invest) some of his money in the market and still live better than us on our aforementioned $3 remainder that we split or we are enriching some person or entity ( corporations are not people they can in no way be ' locked up ' when the break the law a fine is just the cost of parking to a sufficiently rich person and im pretty sure you and I are not going to live for 200 years or mergewith a SPAC to have shares sold on a stock exchange) that does not reside in the US and e would have little or no intrest in the people that live there. After the economic benefit of 'offshoreing' generates the gaines are focused on people who are already rich. I raged out on this subject... The next thing that grindes my gears is when some company sits down with one of these think tanks and talks about the workforce. They will usually gently talk about how important they are and maybe how they partner with some school to get feeder system, because they usually gently stat American workers are just not ready to take on the jobs without a lot of training. This is telling me that key PEOPLE are the important part! Each individual worker is a valuabe resource. The problem to my mind is how can that value show up on a balance sheet. How can companies demonstrate that value to 'wallstreet'. So companies downsize and off shore to keep access the the funds they get through the privet markets and by effect of keeping that stock price high or 'stable' protect employees a vested intrest in that company. Or in retirement funds that hold their stock. But the a key factor of that value the workers in not represented. My fear and anger is stoked because we can not even get to this part if the conversation the systematic undervaluation of worker's. Because misguided hate is directed towards Unions are Taxes. The goverment doesn't need to tax high earners at a higher level to make money, they need to do it so that the gains of economic growth are incentivised to be shared across a broader pool of people. Like that fascist lover Henry Ford did when he paid his workers so they could afford buy a model T. It's no different now. Ask your self if saving some money on cheaper shipping or 'lower taxes' is really makeing up for the lost share of GDP growth... P.S. Libritarinas are just financial anarchistists. P.P.S. '$7 Sal ' is in no way related to the wonderful Sal who runs this channel. : p Appologies for my gramer, spelling and tangents
@Matt-ru5rw
Жыл бұрын
Put the libertarian crack pipe down.
We can’t compete with international ship yards. Why? Labor costs? No. Funding? No. The Jones act does contribute because we cannot benefit from new ship builds from countries that can build great ships cheaply. This is free trade and specialization. The Jones act needs to allow ships to be bought overseas.
I'm PRO Jones ACT 100%. It's the only shipping left in The USA. Everyone else are foreigners. Shoot look up who the parent companies of the semi trucks are that run in North America. With the exception of Kenworth and Peterbilt They are all owned by another company overseas.
Ive nva heard of the Jones Act