The Trump administration said Monday it would extend by 90 days its Jones Act waiver that allows non-American ships to transport energy products and other commodities between U.S. ports while supplies remain constrained by the war in the Middle East, according to the White House.
The latest extension, which takes effect Aug. 17, comes as the petroleum supply chain remains strained because of the ongoing hostilities with Iran.
But the new waiver allowing the foreign-flagged ships to move cargoes between U.S. ports is narrower than the administration’s previous waivers of the century-old shipping law as it now requires government review of each voyage. That change comes after pressure from domestic shipbuilders and their allies in Congress, who have warned that the waivers allow foreign ships to erode the U.S. maritime industry.
The White House has credited the waiver for helping to temper the surge in U.S. energy prices during the Iran war by allowing more fuel to flow to import-reliant states like California. Data from the U.S. Maritime Administration shows that shippers have invoked the waiver more than 200 times since March.
