The Trump administration has extended the emergency waiver for the Jones Act for another 90 days. This extension comes with stricter rules on using foreign-flagged vessels for domestic shipping. A new requirement states that U.S.-flagged shipping options must be checked before approving each individual voyage.
U.S. Customs and Border Protection announced that the Department of Homeland Security has approved this second extension of the waiver, which was first issued on March 17 at the request of the Department of War. This latest extension will start on August 17 and lasts until November 15.
During this extension, any cargo needing coverage must be loaded onto a vessel before the waiver ends at 11:59 p.m. Eastern Time on November 15.
The biggest change is in how approvals for foreign-flagged voyages will be handled.
Starting August 17, companies that plan to transport cargo on foreign-flagged vessels must submit a “Vessel Availability Request” to both the Department of War and the Maritime Administration (MARAD) before the voyage begins.
This request must include specific details such as the vessel and operator names, voyage dates, ports for loading and unloading, types and amounts of cargo, shipment frequency, and an explanation of how the transport serves national defense interests.
MARAD will conduct a market survey to check if a coastwise-qualified vessel is available to transport the cargo. Generally, U.S. operators will have 24 hours to respond to this survey.
The Department of War will use the survey results to decide whether the foreign-flagged voyage falls under the waiver. If a suitable coastwise-qualified vessel is found, that vessel will be given the chance to handle the transportation.
This change essentially turns what used to be a broad emergency waiver into a process where each voyage is evaluated individually, allowing domestic operators to compete for the cargo before foreign vessels are approved.
The Jones Act, which is Section 27 of the Merchant Marine Act of 1920, typically requires that cargo transported between U.S. locations must be carried by vessels that are U.S.-built, U.S.-owned, and qualified for coastwise trade. However, federal law allows for navigation laws to be waived under certain national defense circumstances.
The initial waiver was issued due to disruptions in global energy markets caused by conflicts in the Middle East and issues affecting shipping through the Strait of Hormuz.
Previously, the administration had extended the waiver once, while gradually tightening its usage rules. These latest adjustments represent a significant effort to prioritize domestic shipping options while still allowing foreign vessels as a fallback when U.S. tonnage is not available.
CBP has also released an updated list of products that may qualify under the waiver starting August 17. The list includes over 32,000 Harmonized Tariff Schedule entries, which cover items like soybean oil and ethanol.
These commodities have already been transported on foreign-flagged vessels under the waiver, as reported by MARAD to gCaptain.
Reports indicate three ethanol shipments, including two of undenatured ethanol and one of denatured ethanol, and a shipment of crude degummed soybean oil.
One report about a 134,971-barrel ethanol movement between Galveston and Houston mentioned that Valero had communicated with the White House and CBP and received assurances that ethanol shipments for gasoline blending between Texas hubs were within the waiver's intent.
Another report concerning soybean oil explained that the cargo was a renewable feedstock used for producing renewable diesel.
MARAD's data shows the waiver has been used extensively since March. The latest records detail 220 reported voyages involving cargoes such as crude oil, gasoline, diesel, jet fuel, renewable diesel, ethanol, ammonia, and other energy products.
Foreign vessel operators utilizing the extended waiver will still need to inform CBP about authorized movements and provide details about the vessels, cargo, carrier, and ports involved.
Additionally, federal law mandates that vessel owners or operators and waiver applicants must report information about completed foreign-flagged voyages to MARAD within 10 days after the journey ends.
The new availability evaluation comes after criticism from U.S. maritime interests concerned about how broad the waiver was and their worries that foreign vessels were being allowed to transport domestic cargo, even when Jones Act-compatible vessels could do the job.
The revised approach puts MARAD directly involved in making these decisions before a voyage starts, requiring them to assess the availability of domestic options and providing coastwise-qualified operators a brief chance to offer their vessels.
The waiver continues to be based on national defense considerations. MARAD points out that DHS can waive navigation laws at the request of the Secretary of War when they deem it necessary for national defense to avoid negative impacts on military operations.
In summary, the waiver will remain available through mid-November, but with a significantly higher barrier for companies looking to use foreign ships for U.S. domestic shipping.