India Gets Rid of its “Jones Act”

India has been liberalizing its cabotage laws over the past decade and now appears ready to end them completely:

Splash: India is planning to completely remove its cabotage laws which will allow foreign registered and flagged ships to work along its coast without obtaining a permit from the country’s Directorate General of Shipping.

This is seen as a massive move by the Narendra Modi-led government as the only ships currently allowed to work on local routes for carrying cargo are registered in India. Foreign ships can work along the coast only with an appropriate permit. When it came into force, the law was intended to protect domestic shipowners.

According to local media, this is seen as the biggest reform yet in the shipping sector but also a topic that will undoubtedly rile up Indian fleet owners.

The US’s Jones Act continues to raise shipping costs, increase fuel usage and harm the environment. We should follow India’s example.

Reminds me that there is no such thing as development economics.