The U.S. government has extended the Jones Act waiver for another 90 days, amid ongoing concerns over oil and gas supplies stemming from the effects of the Iran war. The decision comes as fuel markets remain volatile, with supply disruptions still affecting various parts of the global energy landscape. Proponents of the waiver argue that it can help alleviate bottlenecks in transportation and reduce delays, ultimately easing upward pressure on delivered prices.
The original 60-day waiver granted in March was set to expire May 17, but the new extension begins May 18. The reason for the extension appears straightforward: supply and price disruptions had not fully eased, and even a modest reduction in transportation bottlenecks can make a significant difference when fuel markets are volatile.
The Jones Act, enacted in 1920, requires cargo moved between U.S. ports to travel on vessels that are U.S.-built, U.S.-owned, and U.S.-crewed. In theory, this framework supports national security, maritime jobs, and a domestic shipbuilding base. However, it also limits the number of vessels eligible to move coastwise cargo, which can leave key lanes exposed when demand spikes or when geopolitical events disrupt energy and freight flows.
The extension comes as talks to end the war appear uncertain, with the U.S. maintaining a blockade of the Strait of Hormuz, the key waterway for oil and other commodities moving from Persian Gulf nations to global markets. This highlights the ongoing impact of the Iran conflict on the global energy landscape.
Forty international vessels have used, or will use, the waiver, according to the White House. However, this also means cargo that would normally be reserved for Jones Act-compliant tonnage may instead move on foreign-flagged vessels, reducing business opportunities for U.S.-flag operators and weakening pricing power in coastwise trades.
The American Waterways Operators trade group called the decision
The extension highlights the need for a more flexible maritime system.
