White House set to extend Jones Act waiver, sources say
USO•The Trump administration is set to extend a waiver allowing some foreign-flagged ships to transport commodities between U.S. ports, four industry sources said. The waiver could come as early as Thursday and would require case-by-case voyage reviews; gasoline averaged $3.91 per gallon and diesel $6.10.
1. Case-by-case reviews
The administration is set to extend the Jones Act waiver in coming days, four industry sources said. The extension would require individual voyages to undergo case-by-case review rather than granting foreign ships blanket exemptions, two sources said; one source said it could come as early as Thursday.
2. Fuel prices and waivers
The administration last extended the waiver in August, through November 15. A White House official said no decision had been made. The Jones Act requires cargo moving between U.S. ports to be carried on ships built in the United States, owned by U.S. companies and crewed by American workers.
3. Price figures
The waiver aims to lower fuel prices by increasing shipping flexibility and reducing transport bottlenecks, but analysts and industry experts have said it would likely reduce gasoline prices by only pennies per gallon. About 300 waivers were provided under blanket exemptions in March and May, compared with about 48 under the more limited exemptions from August. Gasoline averaged $3.91 per gallon on Thursday, versus $2.98 before the U.S.-Iran war; diesel was $6.10, up from $3.76.
