Jones Act Waiver: U.S. Oil Industry Told to Prepare

The Trump administration has reportedly informed oil industry participants to prepare for the possibility of a Jones Act waiver that would allow greater flexibility in domestic shipping of crude oil and refined fuels within the United States. According to sources familiar with the discussions, officials have begun alerting companies so they can respond quickly if the policy is implemented.

The Jones Act, part of the Merchant Marine Act of 1920, requires that cargo transported between U.S. ports be carried on vessels that are U.S.-built, U.S.-flagged, U.S.-owned and crewed by American mariners. The law is designed to support the domestic maritime industry and maintain national security capabilities, but it can also limit available shipping capacity in certain situations.

Industry sources say officials are considering whether a temporary waiver could help move oil and petroleum products more efficiently between U.S. regions if supply disruptions or logistical bottlenecks emerge. Because the fleet of Jones Act‑compliant tankers is relatively small, allowing foreign‑flagged vessels to operate temporarily could expand transport capacity.

A waiver could reduce transportation costs and help stabilize supply chains in the domestic fuel market, particularly if energy flows need to be redirected quickly. However, the idea has historically faced opposition from U.S. shipping companies and maritime labor groups, which argue that waivers undermine domestic shipbuilding and maritime employment.