(WASHINGTON) — A 60-day Jones Act waiver was issued at the start of Operation Epic Fury under a statutory provision (46 USC 501(a)) designed to address military logistics needs. It was subsequently extended until Aug. 17. Now that President Trump has signed an agreement ending the conflict, the statutory basis for the waiver is null. It’s time to end the Jones Act waiver now, the American Maritime Partnership (AMP) said in a prepared statement Monday.
U.S. Maritime Administration (MarAd) data reveal that foreign vessels transported approximately 1.4 percent of total U.S. petroleum consumption during the first 90 days of the Jones Act waiver – most of that cargo that could have been moved by American vessels, pipelines, trains, or trucks. Voyages conducted under the waiver have taken opportunities from American workers in favor of foreign vessels that do not comply with U.S. tax, immigration, labor and other standards.
The primary driver of fuel cost volatility is the price of crude oil, which swung dramatically between the start of Operation Epic Fury and the interim peace deal signed by President Trump on June 17 – surging from roughly $70 to a peak of $118 per barrel and now decreasing as the Strait of Hormuz reopened. The Jones Act waiver did not reduce costs for Americans.
Since March, the United States has exported more than 1 billion barrels of petroleum products, including crude products from California to Asia. To put it in perspective, only 25.5 million barrels moved domestically under the waiver. Meanwhile, gasoline shipments delivered under the waiver account for roughly 21 hours of U.S. gasoline demand.
MarAd records confirm that around 26 percent of waiver voyages were conducted by vessels owned or subsidized by China, including a Chinese-flagged vessel operated by COSCO Shipping (designated by the U.S. government as a Chinese military company) transporting asphalt between Louisiana and Connecticut.
Waivers undermine domestic investment, the same maritime capabilities the Trump administration and Congress have pledged to rebuild through measures like the Maritime Action Plan.
The Jones Act waiver gives work to foreign vessels and foreign mariners instead of Americans. Every waiver extension creates additional uncertainty for American shipowners, American mariners, and American shipyards.
AMP members continue to report canceled contracts and lost business opportunities as foreign vessels take domestic cargoes from Americans. The Federal Reserve recently warned that maritime investments are being paused because of uncertainty surrounding the Jones Act waiver.
– American Maritime Partnership
