U.S. President Donald Trump extended for 90 days the authorization allowing foreign vessels to transport oil and certain other goods between U.S. ports in violation of the requirements of the Jones Act. Bloomberg reports, writes UNN.
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At the same time, the executive order signed by Trump narrows the scope of this exemption. From now on, each individual voyage will be considered separately following requests from shipbuilding companies and their allies in the U.S. Congress.
Before deciding whether to waive the requirements of the Jones Act, the Pentagon must consult with the U.S. Maritime Administration regarding the availability of vessels flying the U.S. flag, owned by American owners, and operated by American operators. Federal law generally requires the use of such vessels.
From now on, the authorization will also apply to a significantly narrower list of goods, with the primary focus on energy products.
The Jones Act and the transportation of energy products
The list of goods that may be transported under the extended exemption includes gasoline, jet fuel, crude oil, petroleum, liquefied natural gas, soybean oil, and fertilizers.
The Jones Act, enacted in 1920, requires goods transported between U.S. coastal ports to be carried on U.S. vessels. At the same time, exceptions to its requirements allow foreign vessels to be used in certain cases.
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According to experts, representatives of the oil industry viewed the extension of the exemptions positively. They believe such decisions helped increase supplies of U.S. oil and fuel to regions that traditionally depended on imports transported on foreign tankers.
The U.S. administration said that extending the authorization should help prevent disruptions in supply chains and contain price increases.
The extension is necessary to ensure that our armed forces and key industrial sectors maintain uninterrupted access to vital resources. The data show that the exemption led to a significant increase in domestic supplies of such essential goods as gasoline, diesel fuel, and jet fuel