CONFERENCE RECAP
to establish a port via “letters patent”. The Act requires that any new port must demonstrate financial self-suf- ficiency, strategic trade significance, major infrastructure connectivity, and diversified traffic. “In short,” said Swanson, “ports must not be a burden on the taxpayer and must serve the national interest.” This centralized system gives Ottawa greater control — but also, at times, greater bureaucracy. Swanson recounted a case in which protest picket boats blocked access to a Vancouver terminal. “Legally, they could picket, but they can’t impede navigation,” he said. “It took a lot of back and forth before the Port Authority stepped in. Canadians are a little less willing to use their legal powers to impose things on others whereas Americans are a bit more willing to go the litigious route.” Once created, U.S. ports exist at the intersection of state and federal law. State authorities exercise police powers over land use and commerce, while federal agencies — such as the U.S. Army Corps of Engineers, Coast Guard, and Environmental Protection Agency (EPA) —regulate navigation, infrastructure, and environmental compliance. “The problem,” Goldstein said, “is that there are no bright lines. You get murky shades of gray about where state authority ends, and federal oversight begins. It can make life com- plicated for port operators.” By contrast, Canada’s legal bound- aries are more defined. “In Canada, there’s a clear line: federal parliament regulates ports, and provincial legisla- tures generally do not,” Swanson said. “That clarity can make administration easier, even if it comes with more cen- tralized control.” Navigating cabotage laws The discussion then turned to cabotage laws—rules restricting the movement of goods and passengers
Peter Swanson (middle) and Alan Goldstein accept a speakers thank you gift from Long Beach Commissioner Sharon Weissman.
between domestic ports to locally flagged vessels. Goldstein explained the U.S. approach, rooted in the Jones Act of 1920 and the Passenger Vessel Services Act of 1886. Together, these laws prohibit foreign-flagged vessels from transporting cargo or passengers between U.S. ports. Only ships built, owned, and crewed by Americans can do so. The law serves two purposes: supporting the U.S. shipbuilding industry and ensuring national secur- ity by maintaining domestic shipping capability in times of crisis. Canada’s equivalent, the Coasting Trade Act , mirrors the American model. It bars foreign-flagged ships from carrying goods or passengers between Canadian ports — or even performing work like pile driving, or offshore accommodation — without a special coasting trade permit. “These laws protect domestic indus- tries, enforce safety standards, and pre- serve sovereignty,” Swanson said. “But they also mean higher costs. If a suit- able Canadian vessel isn’t available, a permit can be issued for a foreign ship — but only after proving no domestic operator can do the job.” Goldstein noted that similar debates erupt periodically in the U.S., as
critics argue the Jones Act inflates ship- ping costs. “There’s always talk about repealing or relaxing it,” he said. “But U.S. shipbuilders and unions fight hard to keep it.” Swanson added that Canadians, especially in British Columbia, don’t want the U.S. to change a thing. “If the U.S. repealed the Jones Act, it could devastate our cruise ship indus- try,” he said. Under current law, foreign-flag cruise ships sailing from Seattle to Alaska must stop at a foreign port — typically Victoria or Vancouver — to comply. “That’s why those Canadian stops are vital,” Swanson explained. “In 2024, Vancouver had 327 cruise calls and over 1.3 million passengers, generating $1.1 billion for the local economy. Victoria welcomed nearly a million passengers too. So, yes — Canadians quietly love the Jones Act .” The audience weighs in: Practical realities at the dockside When Goldstein invited audience comments, Fred Felleman, a Port of Seattle Commissioner, stood to speak. “We definitely need Victoria to do busi- ness,” he said. “But we also need to maintain shipbuilding capacity in the U.S. The Jones Act protects jobs, national
October/November 2025 — PACIFIC PORTS — 23
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