US Extends Jones Act Shipping Waiver

The Donald Trump administration has extended a shipping waiver for 90 days, allowing foreign-flagged vessels to transport oil, fuel, and fertilizer between US ports until mid-August. This decision is a response to supply disruptions and elevated fuel prices caused by the Iran war, which has significantly impacted global crude oil supplies, particularly through the Strait of Hormuz. The waiver temporarily suspends restrictions of the 1920 Merchant Marine Act of 1920, which normally requires domestic waterborne transport to use US-flagged, -built, and -owned ships. While the United States — United States Department of Defense initially requested the waiver to meet national defense needs, the extension aims to provide certainty and stability for the United States and global economies. The move has been praised by oil industry representatives but criticized by Merchant Marine Act of 1920 supporters, including the Offshore Marine Service Association and its president Aaron Smith, who argue it undermines American shipbuilding and maritime investment.