The US administration has extended the Jones Act shipping waiver for another 90 days. White House Deputy Press Secretary Taylor Rogers said the decision aims to preserve the US military’s and key industries’ uninterrupted access to critical resources.
The extension took effect days before the existing waiver was due to expire on August 16. Rogers said the measure had led to a significant increase in domestic shipments of essential products such as gasoline, diesel and jet fuel.
Rogers said the Donald Trump administration would continue taking steps to protect and strengthen the US economy and national security.
The new scope covers seven products
The new measure creates a narrower waiver than the previous arrangement. Voyages by foreign-flagged vessels will be reviewed individually.
The waiver will apply to vessels carrying a more limited group of commodities. The group includes gasoline, jet fuel, crude oil, naphtha, liquefied natural gas, soybean oil and fertilizer.
Initial measure began on March 18
After tensions with Iran led to supply shortages and rising oil prices, the US administration granted a 60-day waiver under the Jones Act for the first time on March 18. The waiver was continued through subsequent extensions.
Requirements of the Jones Act
The 1920 Jones Act requires vessels used for maritime transportation between US ports to be built in the United States, fly the US flag and have crews composed mostly of US citizens.
The government can grant temporary waivers during major crises such as hurricanes, wars or energy supply problems to allow goods to be transported more quickly. This enables foreign-flagged vessels to carry cargo between US ports under certain conditions.
