Trump Orders 60-Day Waiver of Jones Act Requirements in a Bid to Ease Rising Fuel Prices
President Trump on Wednesday authorized a 60-day waiver of the Jones Act that will temporarily allowing foreign-flagged vessels to transport oil, natural gas and other commodities between U.S. ports as part of an effort to limit energy market disruptions and moderating fuel costs that have soared on the continuing conflict in the Middle East.
The Jones Act, formally known as Section 27 of the Merchant Marine Act of 1920, requires that cargo moving between U.S. ports be carried on ships that are U.S.-built, owned, flagged as well as crewed by U.S. citizens. The restriction has historically led to higher domestic shipping costs compared with international transport.
White House press secretary Karoline Leavitt said in a social media post Wednesday that the waiver is intended to “mitigate the short-term disruptions to the oil market” as U.S. military operations continue in the Middle East. She added that the action would allow “vital resources like oil, natural gas, fertilizer, and coal to flow freely to U.S. ports” during the waiver period.
The administration has framed the decision as part of a broader effort to address rising energy prices tied to geopolitical tensions. U.S. gasoline prices have risen sharply in recent weeks as global crude oil prices have surged. The move follows other administration actions aimed at containing fuel costs, including a planned release of oil from the Strategic Petroleum Reserve.
According to RBN Energy, the small size of the U.S.-flagged fleet, combined with high charter rates and shipping costs, constrains how crude oil and refined products move between U.S. coasts. The firm added that a temporary Jones Act waiver could ease some of these logistical constraints, but its impact on retail gasoline prices is expected to be modest, given that shipping costs account for just a small portion of fuel prices.
Jones Act waivers have been issued periodically in response to emergencies, including major hurricanes and supply disruptions affecting critical energy infrastructure. Federal law allows such waivers when deemed necessary in the interest of national defense.
Reporting by Allegra Fradkin, afradkin@opisnet.com; Editing by Jeffrey Barber, jbarber@opisnet.com