Hawaii is typically at the top, or close to the top, of the cost of living indices for U.S. states. Some have argued that the Jones Act is a big driver of Hawaii’s cost of living, but an examination of the facts shows otherwise.

The Jones Act — enacted in 1920 after World War I — requires that all goods transported by water between U.S. ports, including those in the mainland and Hawaii, be carried on U.S.-flagged vessels that are built in the U.S., owned by U.S. citizens, and crewed by U.S. residents. Why? Because Congress recognized that our national security was dependent on a U.S. merchant marine consisting of vessels and skilled seafarers that could be relied upon to move military equipment and personnel overseas in time of war.

This policy has been proven right time and again, in WWII, Korea, Vietnam, and the more recent engagements in the Middle East. But national security benefits are not all that it ensures. Just two weeks ago, we witnessed the reliability and dependability of the dedicated Jones Act carriers that quickly adapted operations to ensure a reliable lifeline of goods to Hawaii was maintained in the midst of an approaching hurricane.

Critics of the Jones Act claim that the higher cost of U.S.-built ships and U.S. crews compared to foreign counterparts are major contributors to Hawaii’s high cost of living despite the fact that the cost of ships and their crews account for only a small fraction of the cost of moving goods between the mainland and Hawaii.

But what critics fail to mention is that foreign carriers are not subject to the same labor, environmental and safety standards, or subject to U.S. taxes. According to the U.S. Department of Transportation, these additional requirements would likely erase any cost advantage a foreign vessel operator might have if replacing U.S. carriers in serving Hawaii.

Furthermore, it is questionable whether a foreign operator would provide the same quality of service provided by the current Jones Act operators in terms of port coverage, direct sailings, fast transit times, and dedicated and customized equipment.

Current U.S. providers of regularly scheduled services to Hawaii from the mainland have invested over $2 billion in recent years in highly fuel efficient and environmentally friendly vessels and in marine terminal upgrades designed to serve Hawaii for at least the next 30 years, all while their ocean freight rates are essentially at the same level as they were a decade ago.

All of this begs the question: What are the causes of Hawaii’s high cost of living if not the Jones Act? Not the price of consumer goods. Look at the prices for the type of goods carried to Hawaii by the American vessel operators today. An April 2020 survey of prices of 200 consumer goods covering groceries, household goods, apparel, building materials, and automobiles, found no substantial difference in costs between major stores in Hawaii and California. The prices were reported online by major retailers operating in both Honolulu and Los Angeles such as Costco, Target and Walmart as well as Kelley Blue Book data on automobile prices. The survey was done online to ensure “apples to apples” comparisons of exactly the same items as sold in both Honolulu and Los Angeles stores on the same date.

The data shows that the average of the prices of the five different categories was 0.5% higher in Honolulu than in Los Angeles — virtually nil.

Hawaii does have a high cost of living — but the Jones Act is not to blame. Government data shows that the cost of housing, utilities, and medical services are the primary culprits. A dedicated fleet of American ships, reliably delivering the goods that the people of Hawaii depend on, ensures supply never falls below demand. An examination of the facts illustrates that the only cost of the Jones Act might be one without it.

John Reeve is co-author of the American Maritime Partnership’s recent study on the Jones Act’s impact on Hawaii.