U.S. Extends Jones Act Waiver for 90 Days and Tightens Scope

en.Wedoany.com Reported - On August 10, the U.S. government decided to extend the temporary Jones Act waiver for 90 days, continuing to allow foreign-flagged vessels to transport energy and certain agricultural goods between U.S. ports under qualifying conditions. The new waiver will take effect on August 17, with the previous arrangement set to expire on August 16.

Compared with the previous blanket waiver, this extension tightens the application process. Before a foreign-flagged vessel can operate between U.S. domestic ports, each voyage must undergo individual review, and the U.S. Department of Defense must also verify with the Maritime Administration whether U.S.-flagged vessels compliant with the Jones Act are available to handle the relevant transportation.

The new arrangement primarily applies to energy products such as crude oil, gasoline, diesel, and aviation fuel, as well as agricultural-related goods including fertilizer and soybean oil, while coal and coal-derived products are excluded from the scope. Foreign-flagged vessels that have not received approval for a specific voyage remain prohibited from carrying cargo between U.S. domestic ports.

The Jones Act is part of the U.S. Merchant Marine Act of 1920, which requires that cargo transported between U.S. ports be carried, in principle, by vessels that are U.S.-built, U.S.-owned, and crewed by U.S. nationals. This policy constitutes a time-limited waiver and does not involve any permanent amendment to the Act.

The U.S. government first implemented this round of waivers on March 17 in response to disruptions in international crude oil transportation and rising domestic fuel costs. According to U.S. government data, as of August 3, a total of 208 voyages had received waivers over approximately four and a half months. During the extension period, eligible transportation will be subject to voyage-by-voyage review.