The Trump administration has extended its Jones Act waiver for another 90 days, while introducing voyage-by-voyage reviews and narrowing the range of commodities eligible for the exemption.
The extension takes the total waiver period to 240 days. Under the revised process, the Pentagon must consult with the Maritime Administration before each shipment to determine whether a Jones Act vessel is available and whether the waiver applies to the proposed voyage.
The changes follow opposition from U.S. shipbuilders, shipping companies, maritime unions and senior members of Congress.
The waiver has opened additional petroleum shipping routes from the U.S. Gulf Coast to California that were less commonly served by domestic tonnage. The American Petroleum Institute said the measure could strengthen supply security and help protect consumers from price volatility.
The White House said the waiver had increased domestic deliveries of gasoline, diesel and jet fuel. Supporters have also cited domestic LPG shipments using gas carriers, a vessel type that does not exist in the Jones Act inventory.
Opponents have challenged the economic benefits of the policy. Many economic analysts and organizations supporting the Jones Act have said the effect on consumer prices has been negligible, with most of the economic gains going to refiners and commodity traders rather than end users.
Aaron Smith, president and CEO of the Offshore Marine Service Association, said the waiver had not reduced fuel prices for consumers and had imposed costs on American mariners, vessel operators and shipyards.
The American Waterways Operators also opposed the extension. It said the waiver had not been driven by military needs, had not reduced gasoline prices for U.S. consumers and had allowed foreign vessels, including vessels linked to China and Russia, to take maritime work from Americans. The organization said it would work with the administration to ensure that vessels comply with applicable U.S. laws and that individual voyages meet a legitimate national defense need.
Jennifer Carpenter, president of the American Maritime Partnership, said the new case-by-case review was an improvement over the previous blanket waiver. However, she said the organization remained disappointed by the extension because it had not lowered fuel prices for consumers and had not been used to meet military needs.
Matthew Paxton, head of the Shipbuilders Council of America, welcomed the move to verify domestic vessel availability and restrict eligible cargo. He said any waivers issued during the additional 90-day period should be justified on national security grounds.
