The White House is considering another extension of the waiver allowing foreign ships to transport cargo between US ports as the renewed conflict with Iran raises concerns about energy prices and supply disruptions, two sources familiar with the discussions told Reuters.The Trump administration is considering whether to expand a waiver with geographic restrictions that allows foreign-flagged ships to transport cargo between U.S. ports as officials seek to preserve a tool they say has helped ease supply pressure, while addressing criticism from maritime industry groups and Republican allies.The White House met earlier this week with the departments of Energy, Transportation and Interior to consider options ahead of a possible decision before the end of July, Reuters reports.A White House official said no decision has been made on issuing a third waiver extension, noting that the current waiver does not expire until August 16.“President Trump’s decisive action to waive the Jones Act has helped prevent supply chain shortages across the country. The administration is regularly monitoring how the waivers are being used,” the official said.
What is the Jones Act and why does it matter?
The Jones Act, formally known as the Merchant Marine Act of 1920, requires that any cargo transported between two US ports be carried on ships that are built in the US, owned by US companies, registered under the US flag and operated primarily by US citizens or permanent residents.With tensions with Iran disrupting oil shipments through the Strait of Hormuz, the U.S. may need to quickly move more crude oil, gasoline, diesel or LNG between domestic ports. The Jones Act limits those shipments to a relatively small fleet of U.S.-qualified vessels, which can increase shipping costs, slow the movement of fuel and contribute to higher prices.Jones Act waivers temporarily allow foreign-flagged ships to carry cargo between U.S. ports, increasing available shipping capacity. The extended rebates are generally seen as a measure designed to limit price increases by improving the energy efficiency of moving around the US.Before the Middle East war, the Jones Act was waived under the Biden administration through 2022, but it was only a single-ship waiver.