Overview
The administration has extended a temporary waiver of the Jones Act for 90 days, permitting foreign-flagged ships to transport oil and other goods between U.S. ports, a White House official said on Friday. The extension continues the case-by-case approval process that was added in an earlier modification of the policy.
History of the Measure
The waiver was first issued as a blanket exemption in March, issued one month after the start of the U.S. military action referred to in the announcement as the war on Iran. In August, the waiver was altered so that movements by foreign-flagged vessels between domestic ports would be allowed only after individual approvals. That case-by-case requirement remains in force under the latest 90-day extension.
Scope and Scale
According to the White House, since the waiver took effect in March an additional 90 million barrels of petroleum - primarily refined products - have been moved between U.S. ports. The administration provided a breakdown of that total: 27 million barrels of gasoline, 26 million barrels of crude oil, and 6 million barrels of renewable fuels have been shipped domestically under the waiver.
Intended Purpose and Legal Context
The Jones Act requires that cargo carried between U.S. ports travel on vessels that are U.S.-built, U.S.-owned and crewed by American mariners. The temporary waiver is aimed at expanding available shipping options and reducing transport delays in order to help lower prices for gas, diesel and fertilizer - categories that the administration says rose as a result of the war on Iran.
Notable Point
The White House described this extension as the longest waiver in the history of the Jones Act.
Limitations of the Public Record
The announcement provided the volume figures and the administrative approach to approvals, but did not include further operational details about the case-by-case review process or indicate whether additional extensions will follow after the new 90-day period.