A federal judge has dismissed a lawsuit attempting to free Hawai'i from a federal cabotage law that critics have long said inflates the cost of living and doing business in the state.

Five local businesses and former business operators filed the lawsuit in October against the federal government, claiming they were injured by the Jones Act, an 89-year-old law protecting America's fleet of commercial ships.

Part of the plaintiffs' argument was that the law is unconstitutional because it negatively affects Hawai'i's economy more than other states'.

Hawai'i District Judge David Ezra ruled that the plaintiffs have no standing to sue the government over impacts of a law that are shared by the general public.

Ezra also pointed out that none of the plaintiffs demonstrated that the Jones Act put them out of business or was threatening to put them out of business.

The judge dismissed the case with prejudice, meaning the plaintiffs are barred from making the same claim in the future.

The suit, filed by local attorney John Carroll, attempted to have all Hawai'i companies negatively impacted by the Jones Act represented in the case, which also sought damages.

The Jones Act requires that all cargo moved between two U.S. seaports be shipped on vessels that are built in the United States, owned by a U.S. citizen or company and manned by a U.S. crew.

The law is intended to protect domestic shipping and ensure a capable merchant marine in times of war.