Late last week, the White House announced it has issued a 90-day extension to the Jones Act waiver, which was initially put in place for 60 days on March 18. The new extension will commence at 12 AM ET on May 18.
The Jones Act is a law that regulates shipping between United States ports and requires that any cargo shipped between U.S. ports must be transported on ships that are: built in the U.S.; owned by U.S. citizens; flagged, or registered, in the U.S.; and mainly comprised of crewmembers that are U.S. citizens or permanent residents.
“New data compiled since the initial waiver was issued revealed that significantly more supply was able to reach U.S. ports faster,” wrote White House spokesperson Tayor Rogers in a social media message. “This waiver extension provides both certainty and stability for the U.S. and global economies. The Trump Administration has taken several actions to mitigate short-term disruptions to the energy markets, and this extension will help ensure vital energy products, industrial materials, and agricultural necessities are maintained.”
What’s more, a CBS News report cited the White House as saying more than 40 tankers have used, or will be using, the Jones Act waiver, in turn, increasing the availability of transporting goods between U.S. ports by more than 70%, and also leading to more than 9 million barrels of U.S. oil to get to domestic ports.
When the extension to the Jones Act waiver was initially introduced in March—soon after energy prices saw sharp spikes, spurred on by the joint strikes launched by the United States and Israel on Iran, in an initiative geared halting Iran’s development of nuclear weapons—the Department of Energy Secretary Chris Wright said that by temporarily waiving the Jones Act, President Trump is ensuring that oil and other energy resources flow to Americans across the country even during times of disruption.
“This will help to ease short-term price impacts in the oil market as we work every day to lower prices,” noted Wright at the time.
Feedback to waiving the Jones Act for 60 days was not well received by a coalition of U.S.-based maritime labor unions in March—including: American Maritime Officers; American Radio Association; International Organization of Masters, Mates and Pilots; Marine Firemen’s Union; Marine Engineers’ Beneficial Association; Maritime Trades Department, AFL-CIO; Sailors’ Union of the Pacific; Seafarers International Union; and the Transportation Trades Department, AFL-CIO—in a joint statement issued yesterday.
“America’s maritime labor unions are deeply concerned about the Administration’s broad Jones Act waiver, which undermines our national security, weakens military readiness, and hands critical maritime work to foreign vessel operators,” it noted. “Jones Act waivers are intended to meet a strict legal standard and are traditionally granted only in narrow, clearly defined national security emergencies where U.S.-flag capacity is unavailable. Maritime labor has supported narrowly tailored Jones Act waivers in the past when they were obviously justified in the national interest, but this sweeping action does not meet that standard.
This decision will not provide meaningful relief at the gas pump. It has been plainly shown that the primary driver of gasoline prices remains the global cost of crude oil, and multiple analyses demonstrate that domestic shipping accounts for less than one cent per gallon. Any marginal savings will not reach consumers but will instead reward foreign shipping interests at the expense of American workers. Maritime labor calls on the Administration to reverse course and work with stakeholders on real solutions that address energy costs without sacrificing American jobs, national security, or the long-term strength of the U.S. maritime industrial base.”
