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 August 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 Waiver Is Hurting Americans
U.S. Maritime Administration data reveal that foreign vessels transported approximately 1.4% 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 Waiver Did Not Bring Down Prices or Increase Domestic Supplies
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 one 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.
Who Benefits from the Waiver?
MARAD records confirm that around 26% 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 Real Story Is American Jobs
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 cancelled 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.
This Would Never Fly in Other Modes
Laws similar to the Jones Act also exist in other modes of domestic transportation. Imagine the Administration waiving aviation cabotage laws and allowing foreign airlines like Lion Air or Aeroflot to fly domestic routes instead of U.S. airlines. Unthinkable, and rightly so – so why outsource American maritime jobs to foreign entities?
The statutory basis for the Jones Act waiver is over. The waiver is harming, not helping, Americans. Put America First and end the Jones Act waiver today.
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