Philly’s fortunes are tied to the Jones Act, a 1920 law mandating that ships moving goods between U.S. ports must be American-built, -owned and -operated. The yard has delivered more than half of all Jones Act oceangoing vessels since 2003, including container ships, product tankers and crude oil tankers. In 2011 the quasi-public Philadelphia Shipyard Development Corp. bought $42 million worth of the yard’s equipment and leased it back to the yard with an $8 million tax deferral. But “given the limited scope of business under the Jones Act, there is no interest from any potential buyers,” according to one person. Maritime executives say many Jones Act vessels have been at sea for over 30 years, well beyond the 15- to 20-year average age of foreign-flagged ships.

Source: Wall Street Journal April 17, 2019 16:52 UTC