Senior White House, Energy, Transportation and Interior officials met this week to debate whether to prolong a waiver of the century-old Jones Act that bars foreign-flag vessels from carrying goods between U.S. ports. The temporary suspension—first issued on March 17 and currently due to expire on August 16—allows non-U.S. tankers and cargo ships to move fuel, fertilizer and other commodities coast-wise, boosting domestic shipping capacity as oil markets react to renewed U.S.–Iran hostilities. Sources told Reuters on July 15 that President Trump is receptive to a geographically limited extension that would continue to shield energy-sensitive regions such as New England and Puerto Rico from supply shocks while addressing criticism from maritime unions and shipbuilders who say the waiver undercuts national-security shipping assets. Crude prices have hovered near $80 a barrel since Iranian forces exchanged missile strikes with U.S. assets in the Strait of Hormuz last week. For global-mobility managers the decision matters because the waiver also eases constraints on the small passenger ferries and offshore supply vessels that support rotational workforces in the Gulf of Mexico and Alaska. Operators using foreign-crewed vessels have been able to reposition them within U.S. waters without complex coast-wise endorsements, cutting crew change times by up to three days. A lapse in the waiver would force companies back onto pricier, limited U.S.-flag tonnage or require rerouting via foreign ports. Trade agencies and logistics firms should watch for a decision before month-end; legal counsel advise securing Certificates of Documentation for any foreign vessels that might remain in coast-wise service past August 16. Even if the administration grants a third extension, sources say it may carve out sensitive cargoes or impose reporting requirements to mollify Congress.
Source: Reuters via MarketScreener
