Trump Extends Jones Act Waiver For Another 90 Days

President Donald Trump extended the Jones Act waiver for another 90 days on Friday, keeping foreign-flagged tankers eligible to move oil and other commodities between U.S. ports as the war with Iran continues to drive up fuel costs.The extension, confirmed by a White House official who spoke to Reuters, continues what is already the longest waiver in the shipping law's history. Foreign vessels will still need approval for individual voyages due to a restriction introduced in August after earlier blanket exemptions drew opposition from the domestic maritime industry.The 1920 Jones Act requires cargo moving between American ports to travel on U.S.-built, U.S.-owned and U.S.-crewed vessels. Suspending that act allows for a much larger pool of ships.Phillips 66 was among the first to take advantage of the original waiver, shipping roughly 300,000 barrels of Bakken crude from Texas to Monroe Energy's Trainer refinery in Pennsylvania aboard the Malta-flagged HTM Warrior in April.The administration has since tightened the rules. Roughly 300 waivers were granted under the earlier blanket exemptions in March and May, compared with just 48 since the switch to individual approvals in August, according to government figures cited by Reuters.The White House hopes the additional shipping flexibility will help contain gasoline, diesel and fertilizer prices, although previous exemptions have delivered little relief at the pump.U.S. gasoline averaged $3.91 per gallon Thursday, compared with $2.98 before the Iran war began. Diesel stood at $6.10, up from $3.76, according to AAA.Shipping accounts for only a small portion of retail gasoline prices, and critics estimate that relaxing the Jones Act would save consumers mere pennies per gallon.More than 50 Republican lawmakers urged Trump in June to restore the restrictions, citing American maritime jobs and national security concerns.As it stands currently, shippers must prove that suitable American vessels are unavailable before getting approval for using foreign ships. The latest extension keeps that approval process intact.By Julianne Geiger for Oilprice.comMore Top Reads From Oilprice.comFusion's Next Race Is Over Superconducting Tape, Not PlasmaGlobal Power Grid Expansion Surges 50% to Record HighU.S. Oil Rig Count Hold at 463 as Crude Output Hits Another Record