The administration of US President Donald Trump is considering extending an exemption from maritime shipping requirements to facilitate domestic oil and fuel supplies amid a global energy crisis. This is reported by Bloomberg, writes UNN.
Details
This refers to a temporary relaxation of the requirements of the Jones Act of 1920, which obliges cargo to be transported between US ports only by American-made vessels, under the American flag and with American crews. The current exemption, introduced on March 18, is valid for 60 days and expires in May.
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According to sources, the decision to extend has not yet been made. At the same time, officials are consulting with industry representatives, trying to determine further policy.
During the exemption, it has already been applied or is planned to be applied by more than 40 tankers. This allowed about 9 million barrels of oil to be delivered to various regions of the United States, including California, Florida, and Alaska.
Reason – energy crisis
The need to extend the benefits is linked to disruptions in the global market due to the war with Iran and the de facto blockade of the Strait of Hormuz, through which about a fifth of the world's oil supplies usually pass.
Over the past two months, prices have risen sharply: Brent crude has risen by almost 36%, and the average price of gasoline in the US by 35% to $4.74 per gallon.
Discussion around the law
Proponents of extending the exemption believe that it will help stabilize prices and increase supplies. Critics of the Jones Act have long stated that it makes transportation more expensive due to restrictions on the use of foreign vessels.
At the same time, its defenders emphasize that these rules are necessary to support American shipbuilding and national security.
Oil industry representatives have already urged the administration to decide as soon as possible, as companies are planning logistics for supplies after the current exemption expires.