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Jones Act

U.S. federal law restricting domestic maritime transport of goods and passengers to U.S.-built, -owned, and -crewed vessels.

The Jones Act (Section 27 of the Merchant Marine Act of 1920) requires that any vessel transporting merchandise or passengers between two U.S. ports must be built in the United States, owned by a U.S. citizen, and crewed by U.S. mariners. For charters, the relevant provision is the Passenger Vessel Services Act, which applies the same principle to paying passengers.

Practically, this means a foreign-flagged yacht cannot pick up paying passengers in Miami and drop them in Key West; it must either return to the same U.S. port or include a foreign port of call (typically the Bahamas) between the two U.S. ports. Bareboat charters are exempt from this rule because no one is being paid to transport anyone — the charterer is transporting themselves.

Violations carry significant federal fines. The Jones Act is why so many U.S. yacht charters are structured as bareboat-with-captain-for-hire arrangements.

Examples

  • A foreign-flagged yacht picks up guests in Miami, cruises to Bimini overnight, then returns to Miami — legal.
  • The same vessel picking up guests in Miami and dropping them in Key West — a Jones Act violation.

On CharterXO

CharterXO's booking flow enforces Jones Act-compliant itineraries automatically. Foreign-flagged listings cannot accept point-to-point U.S. bookings.

Related Terms

Bareboat Charter—A charter where the customer leases a yacht without crew or captain and assumes full operational responsibility for the voyage.Certificate of Inspection (COI)—A USCG certificate required for passenger vessels carrying seven or more paying passengers.Charter Insurance—Commercial marine insurance covering a charter vessel, its passengers, crew, and third-party liabilities during paid trips.

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