The Merchant Marine Act of 1920 (P.L. 66-261) is a United States Federal statute that regulates maritime commerce in U.S. waters and between U.S. ports. Section 27, also known as the Jones Act, deals with cabotage (i.e., coastal shipping) and requires that all goods transported by water between U.S. ports be carried in U.S.-flag ships, constructed in the United States, owned by U.S. citizens, and crewed by U.S. citizens and U.S. permanent residents. The purpose of the law is to support the U.S. merchant marine industry, but agricultural interests generally oppose it because, they contend, it raises the cost of shipping their goods, making them less competitive with foreign sources.

The Merchant Marine Act of 1920 is one of three congressional laws commonly referred to as the "Jones Act". Formerly, it was found at 46 U.S.C. Section 688, et seq. and was recently codified in October, 2006 at 46 U.S.C. Section 30104 et seq. The purpose of the Jones Act was to recognize the importance of a strong merchant marine system for national defense, and the growth of foreign and domestic commerce by protecting the mariner. Dating back for many centuries, the shipping industry has long been accepted as vital to the economic existence of countries. It was always important that when a seaman was injured far from home, it was the duty of the ship owner to repatriate the injured worker.

The Jones Act is the best known of the nation’s cabotage laws. By calling for movements of water-borne cargoes between U.S. ports by vessels that are American-crewed, -built and –owned, it has enhanced important U.S. security interests and generated many economic benefits.

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The Merchant Marine Act of 1920 is a United States Federal statute that regulates maritime commerce in U.S. waters and between U.S. ports. It is a cabotage law which also contains provisions regarding seamen's rights.

Outside of the US and Caribbean, the same style of laws that make up the "Jones Act" are called "cabotage laws". Many countries are very strict with these laws that dictate that you cannot embark and disembark within the same country without having visited a foreign country in between. Advance notice for special permits are required for some countries, and they are not guaranteed in advance. Particular information and documentation may be required by the authorities.

The Maritime Cabotage Task Force (MCTF) is dedicated to educating America on the economic, national security, environmental and safety benefits of the Jones Act and other U.S. cabotage laws so that domestic waterborne commerce remains a pillar of our national existence.

Speaking at the SIU’s affiliated training facility on Labor Day, the president stated, “It’s important for presidents to embrace the Jones Act.” He also pledged to continue backing the Jones Act, a law that requires cargo moving between domestic ports to be carried on ships that are crewed, built, owned and flagged American.

During all this, there has been one constant (besides change itself) which has allowed ship owners and operators to deal with the vagaries of waterborne commerce — the Jones Act. Enacted in 1920, the law (actually Section 27 of the Merchant Marine Act of that year) simply requires that cargo moving between U.S. ports be carried in ships which are U.S.-owned, U.S.-built and U.S.-crewed.

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