The White House restricted a temporary exemption to the Jones Act on August 17, replacing a broad waiver with a case-by-case review process for domestic fuel transport. The original blanket waiver was issued in March after an oil supply disruption linked to conflict in Iran. Under the new rules, the U.S. Department of Transportation’s Maritime Administration (MARAD) has 24 hours to survey shipowners operating Jones Act-compliant vessels before approving foreign-flagged alternatives.
What it means
The shift from a sweeping exemption to individual reviews has sharply reduced the use of foreign-flagged ships for domestic energy cargo. Voyages by these vessels dropped from more than 280 between mid-March and mid-August to just nine since the revised waiver took effect on August 17. Consequently, weekly shipments of energy products from the Gulf Coast to East and West coast ports have fallen by more than 500,000 barrels daily.
September recorded the lowest seasonal arrivals of fuel and oil to the West Coast since 2020. Oil companies are requesting broader exemptions or faster processing under the current system, while maritime interests and shipbuilding allies supported the tighter limits. The Jones Act mandates that goods moved between U.S. ports travel on vessels built, flagged, and crewed in the United States. According to a Bloomberg Government analysis, at least a dozen vessels transported cargo without notifying MARAD since March. White House spokeswoman Taylor Rogers said the waivers have allowed vital energy products and industrial materials to reach U.S. ports faster.
Key facts
- The revised Jones Act waiver took effect on August 17, 2026.
- The current exemption expires on November 15, 2026.
- Foreign-flagged vessel voyages for energy supplies fell from over 280 (mid-March to mid-August) to nine since August 17.
- Weekly Gulf Coast energy shipments to East and West coasts decreased by more than 500,000 barrels daily since mid-August.
- September saw the fewest seasonal fuel and oil arrivals to the West Coast since 2020.
- MARAD has 24 hours to survey compliant shipowners under the new review process.
- The initial sweeping waiver was issued in March following an oil supply crunch caused by the Iran war.
Source: Bloomberg Government analysis and White House statements