A recent analysis suggests that the number of foreign-vessel journeys not reported in federal Jones Act waiver records is greater than previously thought. At least 15 journeys have been identified that are missing from the U.S. Maritime Administration’s (MARAD) public records.
This information builds on a previous report by Bloomberg Government, which gCaptain covered last week. That report noted at least a dozen domestic voyages undertaken under the emergency waiver that were also absent from MARAD’s records.
Colin Grabow, a research fellow at the Cato Institute and a known critic of the Jones Act, examined vessel-tracking records and data from the National Ballast Information Clearinghouse. He found 14 tanker voyages that showed strong evidence of foreign vessels loading cargo at one U.S. port and unloading it at another, without being recorded by MARAD.
These journeys included seven deliveries to California, three to Puerto Rico, two to Hawaii, plus one each to Marcus Hook, Pennsylvania, and New Haven, Connecticut.
The total cargo capacity for these 14 tankers was around 5.2 million barrels, although Grabow noted that this figure may only represent a maximum and not the actual amount transported.
The evidence for these claims primarily came from changes in vessel draft and port visits. Typically, a tanker arrives at a U.S. loading port with a certain draft, is significantly deeper upon arrival at another port, and then shows a lighter draft when reaching its next destination. This pattern strongly suggests that cargo was loaded and discharged domestically.
An additional potentially unreported voyage involves a Liberian-flagged LPG carrier that arrived in Honolulu on May 22 from Port Neches, Texas.
These findings raise further questions about MARAD’s tracking of ships operating under the emergency Jones Act waiver.
Federal regulations require vessel owners or operators using the waiver to report completed journeys to MARAD within 10 days. MARAD then publishes these reports, which serve as the primary public record of foreign vessels involved in restricted domestic trades.
Last week, MARAD told Bloomberg that it lacks the legal authority to force operators to file these reports. Enforcement of the Jones Act falls under U.S. Customs and Border Protection. According to Grabow, this means MARAD’s published figures should be seen as a minimum, not a full account of waiver activities.
The missing voyages are fueling different arguments in the ongoing debate over the Jones Act.
Grabow contends that these extra shipments demonstrate that the waiver opened up domestic energy routes that were either poorly served or didn’t exist at all under standard Jones Act regulations. Examples include fuel shipments from the Gulf Coast to Hawaii and a significant increase in movements to California and Puerto Rico.
On the other hand, supporters of the Jones Act focus on the lack of reporting and how much foreign vessels were able to participate in domestic trades without being reflected in government records. The President of the American Maritime Partnership, Jennifer Carpenter, called the reporting issues “outrageous” and called for greater oversight from Congress.
A review by gCaptain of MARAD data published on September 16 showed that there were 255 completed movements tied to the original waiver from March 17 and its extension in May. The newly found voyages indicate that this total may not accurately reflect all foreign-vessel activities.
Since then, the administration has adjusted the process. A second 90-day extension that took effect on August 17 requires companies to submit a Vessel Availability Request first, so the government can assess whether a qualified domestic vessel is available before allowing foreign vessels to operate.
The current waiver is set to last until November 15.