The Fifth Circuit Court Upholds Ruling Against Great Lakes Dredge & Dock Company

The U.S. Fifth Circuit Court of Appeals has recently made a significant decision in the ongoing battle between Great Lakes Dredge & Dock Company (GLDD) and U.S. Customs and Border Protection (CBP) regarding the interpretation of the Jones Act.

In a ruling that upheld CBP’s position, the court addressed GLDD’s challenge to a loophole that allows foreign-flagged vessels to conduct initial scour protection installation for offshore wind projects. This decision has raised concerns about the enforcement of the Jones Act, a federal law that regulates maritime commerce in U.S. waters.

The Dispute and Ruling

The dispute stemmed from CBP’s 2021 letter ruling, which initially seemed to support Jones Act-compliant vessels by considering rock transported to the Outer Continental Shelf (OCS) as “merchandise” under the Act. However, a revised ruling shortly after allowed foreign vessels to perform the first installation of scour protection without violating the Jones Act.

GLDD, in response, argued that this reversal created a regulatory loophole that could undermine U.S. maritime interests. The company, known for building the first Jones Act-compliant subsea rock installation vessel for offshore wind projects, sought to challenge CBP’s ruling, claiming it violated federal law and posed a threat to its market position.

Industry Implications

While the court dismissed the case on technical grounds, the ruling has raised concerns within the U.S. offshore wind sector. With President Trump’s executive order pausing offshore wind leasing and calling for a review of existing projects, the future of offshore wind development in federal waters remains uncertain.

Despite these challenges, GLDD remains committed to its long-term strategy in the U.S. offshore wind market. The company is set to deliver the Acadia, the nation’s first Jones Act-compliant subsea rock installation vessel, in late 2025. This vessel will play a crucial role in transporting and depositing rock for wind turbine foundations.

Looking Ahead

The ruling’s implications could have far-reaching effects on U.S. maritime companies investing in Jones Act-compliant vessels for the emerging offshore wind sector. While GLDD has secured contracts for the Acadia with major players in the industry, the full impact of the Fifth Circuit’s decision remains uncertain.

Despite regulatory hurdles, opportunities exist for specialized Jones Act-compliant vessels in the offshore wind market. GLDD’s continued commitment to the sector and its projects with Equinor and Ørsted demonstrate the potential for growth and success in this evolving industry.