Trump extended for 90 days the authorization for foreign vessels to transport oil to U.S. ports
Kyiv • UNN
Trump extended the exemption from the Jones Act, which regulates maritime transportation between U.S. ports. The waiver applies to a broad range of energy products and other goods.
U.S. President Donald Trump has extended for another 90 days a waiver from the Jones Act that allows oil and other goods to be transported between U.S. ports on foreign-flagged vessels. The measure is aimed at reducing fuel costs, Bloomberg reports, writes UNN.
Details
The more than 100-year-old Jones Act stipulates that cargo between U.S. ports must be transported on vessels owned by American owners, flying the U.S. flag, and operated by American companies.
According to a White House official, the new authorization will take effect at midnight Monday New York time. This will avoid a gap between the expiration of the previous waiver and the start of the new one.
The decision was made amid concerns within the U.S. administration about high energy prices due to the war in Iran.
At the same time, Trump did not expand the scope of the exemptions. In August, he narrowed them by introducing a check for the availability of U.S. vessels for each individual voyage.
Shipment volumes
According to government data analyzed by the Cato Institute, since March, when Trump first suspended the restrictions, foreign vessels have made about 338 voyages. In particular, they transported oil from Texas to Pennsylvania and propane to Puerto Rico.
California received the largest volume of additional supplies. According to a White House official, the state received an additional 23 million barrels of petroleum products compared with the same period last year, versus 8 million barrels a year earlier.
Overall, since the waiver was introduced, an additional 90 million barrels of products, primarily petroleum products, have been transported between U.S. ports. The current authorization allowed around 13 million barrels to be transported, more than one-third of which was gasoline and approximately 28% crude oil.
Criticism of the decision and its benefits
The extension of the waiver drew criticism from U.S. shipbuilders and their allies in Congress. They believe the easing undermines requirements intended to support domestic shipbuilding.
Oil and chemical companies, meanwhile, say the authorization helps transport crude oil, fertilizers, and other goods between U.S. ports more quickly and cheaply.
Products covered by the waiver include gasoline, jet fuel, crude oil, liquefied natural gas, soybean oil, and fertilizers.