A container truck is seen traveling down the road at the Port Authority of Guam in Piti on Jan. 29, 2025.
Photo by Frank San Nicolas/The Guam Daily Post
HAGÅTÑA (The Guam Daily Post) — In one of the latest attempts to reduce shipping costs to Guam, Sen. Jesse Lujan has urged congressional leaders to consider proposed amendments to the 2026 National Defense Authorization Act that would result in waivers to the Merchant Marine Act of 1920.
Commonly known as the Jones Act, it requires that only U.S.-built, U.S.-owned, U.S.-flagged, and U.S.-crewed vessels transport goods between U.S. ports.
Officials, especially in the outlying states and territories, have argued for years that that law is antiquated, protectionist and substantially drives up the costs of goods.
Lujan’s strategy is twofold. First, he is suggesting an amendment be included in the FY26 NDAA to authorize the secretary of Defense to seek waivers from the Jones Act for goods that impact national defense and military readiness on Guam.
He has also requested that a feasibility study be done to determine the implications of a permanent waiver of the Jones Act for Guam and another feasibility study on the overall impacts of an air cabotage exemption for Guam and the Commonwealth of the Northern Mariana Islands.
The air cabotage exemption would allow foreign carriers to fly between Guam and the CNMI and the U.S. mainland.
“Currently, a foreign carrier is limited to one U.S. port of entry. Hence, an exemption could result in carriers from Korea, the Philippines, or Japan picking up passengers in Guam and taking them to the (U.S.) mainland. The competition would encourage price reductions,” Lujan said.
Lujan said these are initial attempts to address the cost of goods and airfare, which impact all our island residents, including the military service members who are deployed on Guam.
“We will continue this advocacy despite the heavy opposition we are certain we will face from unions and other parties,” Lujan said.
Opposition to the Jones Act has been growing in Congress in recent years. One of the most recent measures was introduced in May by Rep. Ritchie Torres of New York.
Under the legislation, called the Noncontiguous Energy Relief and Access Act, oil and other energy products transported to Hawaii, Alaska, Guam and Puerto Rico would be exempt from Jones Act restrictions.
According to a statement on Torres’ website, Rep. Ed Case of Hawaii and Delegate James Moylan of Guam are co-sponsoring the legislation.
“Alaska, Hawaii, Guam and Puerto Rico face some of the highest energy costs in the United States, largely due to limited supply chains and restrictive shipping regulations,” Torres said.
Torres argued that the Jones Act “often forces these regions to import energy resources from foreign countries, as there are not enough qualified vessels available to carry U.S.-produced energy products.”
“In Guam, an exemption to the Jones Act could significantly reduce shipping costs. In Alaska, despite its vast oil and natural gas resources, energy cannot be efficiently shipped to other regions due to the shortage of compliant vessels,” Torres added.
“This legislation aims to lower energy costs for families and businesses in noncontiguous states and territories, expand opportunities for U.S. energy companies and improve access to critical energy infrastructure,” Moylan said in a statement on the Torres website.
“Together, we are working to provide much-needed relief to residents in Guam and other regions by addressing the challenges created by the Jones Act,” Moylan added.
Lujan has written to the chairmen of the U.S. House and Senate Armed Services Committees, Rep. Mike Rogers and Sen. Roger Wicker, to request the NDAA amendments.
The House of Representatives begins discussions on the FY2026 NDAA this week, Lujan said.
