The main driver of domestic shipping costs in the U.S. is the Jones Act cabotage requirements and in particular the U.S. domestic ship build requirement.  That is all vessels used in commerce in the U.S. must be constructed in the U.S. The cost of building an oceangoing ship in the U.S. is now five times that of comparable ships in South Korea or Japan. Unless that changes, the cost structure – and the high domestic Jones Act freight rates – won’t become competitive. The addition of a third shipping company – i.e., Saltchuk Resources Inc. / TOTE Inc. – employing expensive U.S. built ships (they are proposing to build four new containerships at Philly Shipyard Inc.) won’t reduce the cost structure in the trade.