The US government is extending the temporary waiver of the so-called Jones Act for an additional 90 days. This allows foreign vessels to continue being used for certain transports between two US ports. The previous exemption would have expired on August 16.
The Jones Act is a US regulation for domestic maritime shipping that is more than 100 years old. Simplified, goods transported between two US ports must normally be carried by ships that were built in the US, are owned by US owners, and are operated by American crews.
This very regulation is being relaxed again due to tight supply conditions. The background includes disruptions to global oil supplies due to the conflict with Iran as well as high fuel prices in the US. The focus is particularly on gasoline, diesel, kerosene, and other goods that are critical for the economy and supply chains.
However, the extension is now being applied more narrowly. Foreign shipping companies do not receive blanket authorization for any domestic US transports. Each voyage will be reviewed individually going forward. Among other factors, it will be relevant whether a suitable US vessel is available and whether the exemption is necessary for reasons of national supply or defense.
The relaxation is already being used extensively. According to US government data, approximately 208 exemptions were granted within roughly four and a half months by August 3. This shows that this is not merely a theoretical emergency rule.
For the American maritime industry, this topic remains politically sensitive. US shipping companies, shipyards, and maritime associations view the exemptions critically because foreign vessels gain access to a market that is normally expressly reserved for US ships. Energy companies, on the other hand, welcome the additional transport capacity.