Jones Act waiver extended for US energy shipments

President Donald Trump on Monday extended for 90 days a waiver allowing foreign ships to carry oil and other commodities between US ports, with the renewed relief focused more narrowly on energy transport.

The extension came shortly before an earlier waiver was due to expire in mid-August. The relief also calls for reviews of whether US vessels are available before deciding if the waiver applies to individual voyages.

White House spokeswoman Taylor Rogers said the extension was intended to ensure the US military and key industries maintain uninterrupted access to critical resources. She said administration data showed the waiver had increased domestic deliveries of gasoline, diesel and jet fuel.

Cato Institute analysts Colin Grabow and Scott Lincicome estimated that more than 54 million barrels of energy products have moved between US ports on more than 200 voyages since March, when an earlier waiver was introduced.

The 1920 Jones Act requires cargo moved by water between US ports to be carried on vessels that are US-built, US-owned and registered under the US flag. The measure was intended to support American shipbuilding.

The Trump administration first granted a 60-day waiver in March and extended it in late April as economic fallout from the conflict involving Iran persisted.

Oil and gasoline prices in the United States have risen during the war involving Iran, and negotiations on ending the war and reopening the Strait of Hormuz have stalled.