After the lash of the shipping cartel

Between fiscal years 2002 and 2008, ocean freights paid in Puerto Rico increased by USD 200 million, equivalent to 8%, one of the most significant increases registered for that item in decades.

In contrast, during the same period, container traffic decreased by 4%, and by 28% since its peak in 2000.

The difference may be appreciated in the statistical data of the Port Authority and Planning Board but, undoubtedly, it must be a topic for analysis in the federal capital, as those figures were requested by the US Government Accountability Office (GAO), which examines the impact of the coastal trade laws (Jones Law) regarding the economy of Puerto Rico.

The discrepancy between the tariff increase and the reduction in volume took place during the same period in which, according to the Federal Justice Department, at least three of the four maritime transportation companies (Sea Star Lines, Horizon Lines, and Crowley Liner Services) which managed cargo between the continental United States and Puerto Rico agreed to fix the prices for transportation of goods to the island.

These facts are used as arguments by those who advocate the review, modification, and even derogation of coastal trade laws, who understand that the centenary institutional framework regarding maritime transportation is one of many problems that strand the island's economy.

In contrast, a union leader and a representative of the maritime transportation sector sustain that derogating the Jones Law would be more adverse than continuing with it, as the hurdles faced by the sector are tied to other factors such as rigid tariff structures, and a chronic commercial deficit.

See the complete article in its original source (in Spanish)