The most expansive suspension of the Jones Act in decades raises immediate operational and legal questions for vessel owners.

The Situation

U.S. Customs and Border Protection (“CBP”) published a bulletin (the “CBP Bulletin”) yesterday confirming the issuance of a 60-day waiver of the Jones Act, authorizing foreign-flagged vessels to transport oil, liquefied natural gas (“LNG”), fertilizer, and coal between U.S. ports. Previously, White House Press Secretary Karoline Leavitt described the measure as a step to mitigate short-term disruptions to the oil market resulting from activities in the Strait of Hormuz.

The Jones Act: Waiver Conditions

The CBP Bulletin confirmed that the limited waiver was issued pursuant to 46 USC Section 501(a), and that it would expire under its terms at 11:59 EDT on Sunday, May 17, 2026.  The Jones Act provides for two types of waiver requests to the Department of Homeland Security (“DHS”), one, under 46 USC Section 501(a) by the Secretary of Defense relating to what it considers “necessary in the interest of national defense to address an immediate adverse effect on military operations”, and one under Section 501(b) by a determination by the President that such a waiver “is necessary in the interest of national defense”.  Section 501(a) requires the Secretary of Defense to provide certain U.S. House committees with a “written explanation of the circumstances requiring such waiver . . . including a confirmation that there are insufficient qualified vessels to meet the needs of national defense without such waiver” within 24 hours after it makes the request to DHS.

Scope and Mechanics of the Waiver

The proposed waiver differs from prior suspensions in several ways:

• Commodity scope: Earlier waivers addressed specific products on defined routes, usually petroleum products being transported on the East Coast and to Puerto Rico, while the announced waiver would apply to oil, LNG, fertilizer, and coal cargoes being transported nationwide.
• Fleet-wide authorization: Rather than requiring vessel-by-vessel applications to CBP, this waiver appears to authorize a class of voyages.
• Duration: At 60 days, this suspension is among the longest in the statute’s modern history.

Practical Effect

Industry experts and analysts are questioning whether the waiver will reduce U.S. fuel prices and point to several structural factors that could limit its impact:

• Jones Act tankers carry a small percentage of U.S. gasoline by volume.
• A significant share of Jones Act tanker capacity is committed under long-term charter agreements, with pricing for those charters already set and reflected in the supply chain.
• The international tanker market is constrained. 
• Analysts estimate consumer savings on the East Coast are minimal, at best, and may be offset by cost increases in Gulf Coast markets.

Legal and Regulatory Considerations

Prior Jones Act waivers have been grounded in discrete needs such as post-hurricane relief logistics, Strategic Petroleum Reserve releases, and direct military supply chain support. Reporting on White House press issuances indicate a broader application.

Any administrative or judicial challenge to the waiver likely would focus on whether sufficient circumstances exist to support the finding of defense necessity given the continued availability of domestic Jones Act tonnage. We are closely monitoring the market for litigation and/or Congressional oversight that may affect implementation.