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Flag Work

Is it true that on cargo vessels under US flag, only US citizens work?

I heard that all crew on cargo vessels under US flag are US citizens. I don't know if this information is correct, but I have hard time believing it. I mean what about the "profit-earning capacity" of the US merchant-fleet? Or has this something to do with the strong unions in the US. THX for any information

This IS true. All ships with a US Flag (registered in the US) must meet the criteria of the Jones Act (officially known as the Merchant Marine Act of 1920). One part of this Act states that US flagged vessels must be:
1.) built in the United States (a certain percentage of the hull at least; occasionally unfinished hulls are sent overseas for completion, and still concerned US built.)
2.) Owned by a US company
3.) Crewed by US citizens (100% officers, 75% of the crew. Most companies I have come across use 100% Americans as crew too - it is easier for communications and staffing.)

The reason that a ship would bother to do this is also contained in maritime laws: In order for a commercial vessel to go from one US port to another US with out a stop in an international port, the vessel MUST be US flagged. This is why Alaskan cruise ships stop in a Canadian port on the way up the coast. (They aren't US flagged.) There are VERY steep fines for violating this law.

A ship does not have to be US flagged to enter US waters. There are many ships that have crews who are not Americans, and you are correct - typically the pay for the international sailors is lower than the pay on a Jones Act vessel.

The Jones Act also had other important impacts on the US marine industry, including allowing sailors to be compensated if injured on a vessel - similar to workman's comp. (This was actually the primary purpose of the act.)