Trump Extends Jones Act Waiver to 90 Days, Allowing Foreign Ships to Move Oil Between US Ports

President Donald Trump on Friday extended a Jones Act waiver for 90 days, allowing foreign-flagged vessels to transport oil and other commodities between US ports, marking the longest waiver in the law's history.

This also marks the longest waiver in the history of the century-old shipping law.

What the Jones Act Waiver Means for Energy Markets

The Jones Act requires goods transported between US ports to be carried on ships built, owned, and crewed by Americans. The waiver aims to lower gasoline, diesel, and fertilizer prices, which have risen due to the war with Iran, by increasing shipping flexibility and easing bottlenecks.

A White House official told Bloomberg that the extension will take effect Monday and last at least until mid-February.

The US government issued a comprehensive waiver in March, one month after the US went to war with Iran. In August, the government extended the waiver but required case-by-case approval, according to Reuters. That requirement remains under the latest extension.

Tracking Data Shows New Domestic Routes and Barrels Shipped

The Cato Institute, which advocates for repealing the Jones Act, said Maritime Administration voyage data reveals new domestic routes. Cato noted the data is not comprehensive, so actual cargo volumes may be higher.

As of November 10, Cato's tracker recorded 343 voyages involving 255 vessels, including 84 transits through the Panama Canal. The data also shows approximately 91.9 million barrels of oil were transported.

According to AAA, the national average diesel price on November 13 was $6.064 per gallon, about 46 cents below the all-time high of $6.5276 per gallon set on September 22.