Alaska forest products trade flows for 1982 were studied to determine the effects of the Merchant Marine Act of 1920 (the Jones Act). Information was collected from timber producers, forest product industries, and waterborne shippers in Alaska, British Columbia, and the Pacific Northwest. Trade flows were simulated, using a partial equilibrium model based on resource rents, with and without the Jones Act restrictions. Results indicate that $4.77 million in additional costs were incurred in 1982 because of the Jones Act. These effects appeared small, however, relative to the wholesale value of trade. Further, the Jones Act cost differential was not a major factor in market determination, although low-value products and longer trade routes were more sensitive to cost changes. Primary movements of logs and chips and lumber imports from the Pacific Northwest showed the greatest potential for cost savings after relaxing the Jones Act.
Jackson, K.C.; McKetta, C.W. 1986. Impacts of the Jones Act on the Alaska forest products trade. Gen. Tech. Rep. PNW-GTR-196. Portland, OR: U.S. Department of Agriculture, Forest Service, Pacific Northwest Research Station. 39 p