The US Department of Homeland Security has issued and subsequently extended a broad waiver of Jones Act coastwise trade restrictions, allowing foreign-flagged, foreign-built and foreign-owned vessels to transport specified energy and agricultural commodities between US ports and points.

The waiver was granted on March 17, 2026, following a request from the Department of Defense under section 501(a) of Title 46 of the United States Code. An initial 60-day period was later extended on April 24, with the measure now scheduled to expire at 11:59 p.m. on August 16, 2026.

US Customs and Border Protection confirmed implementation on March 19 and initially identified 659 covered commodity categories. The scope has since expanded to 671 commodity types, including crude oil, refined petroleum products, natural gas, coal, fertilizers and fertilizer inputs. The waiver applies nationwide, including trades serving Hawaii, Alaska and Puerto Rico.

The Jones Act, also known as the Merchant Marine Act of 1920, generally requires cargo transported between two US ports or points to move on vessels that are US-built, US-flagged and owned by US citizens. Its requirements apply across several vessel and cargo segments, including tankers, containerships, dry bulk carriers, tugs and barges.

The administration linked the waiver to disruption in global energy markets following US and Israeli military operations against Iran beginning on February 28. The effective closure of the Strait of Hormuz, through which about one-fifth of global oil and liquefied natural gas supplies transit, contributed to supply-chain disruption and higher energy prices. According to the White House rationale cited in the source material, the waiver was intended to mitigate short-term oil-market disruption.

Companies using the waiver remain subject to procedural conditions. Vessel owner-operators must notify CBP before each voyage, document the cargo and affirm that the shipment is moving under the waiver. They must also report voyage information to the US Maritime Administration within 10 days after completion and explain how the movement served the interests of national defense. MARAD is required to publish those reports through a Department of Transportation website.

Use of the waiver has increased. A cumulative MARAD report dated May 26 listed 63 instances in which the waiver was granted, compared with 30 reported on May 4. However, an independent assessment by the US Navy League’s Center for Maritime Strategy, based on March and April data, estimated that the measure affected gasoline prices by only $0.000157 per gallon.

The waiver has also raised legal and industry questions. The source commentary argues that the narrower authority under 46 U.S.C. § 501(b), which relates to immediate defense requirements, may have been more appropriate than the nationwide authority used under section 501(a).

US carriers and maritime unions have expressed concern that the waiver could reduce cargo volumes for domestic operators, create uncertainty around existing charter parties and place pressure on American maritime employment. Foreign operators may gain commercial opportunities, but other US requirements covering inspections, labour, crew citizenship and customs procedures remain applicable. Debate is therefore continuing over whether the waiver’s breadth and duration are justified by national defence and energy-security needs.