Foreign-flagged tankers conducted domestic U.S. petroleum movements worth more than $40 million without appearing in public reports required under the Jones Act waiver process, according to an analysis by Bloomberg Government.
The analysis identified at least 12 vessels linked to owners in China and other countries that transported cargoes from the U.S. Gulf Coast to the East Coast, West Coast and Puerto Rico. The voyages did not appear in the public waiver reports published by the U.S. Maritime Administration (MARAD), which confirmed the activity to Bloomberg.
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The disclosure raises questions over whether MARAD’s public data provides a complete record of foreign-vessel operations permitted in domestic U.S. trades under the emergency waiver. The Jones Act generally restricts cargo movements between U.S. points to coastwise-qualified vessels meeting U.S. ownership, construction and documentation standards.
Operational context
Under the waiver rules, vessel owners or operators, as well as waiver applicants where applicable, are required to report completed voyages to MARAD within 10 days. Reports must identify the vessel and operator, voyage dates, ports, cargo and the national-defense justification for the movement. MARAD is then required to publish the submission within 48 hours of receiving it.
MARAD told Bloomberg that it lacks legal authority to compel companies to comply with the reporting requirement. Enforcement of the Jones Act falls under U.S. Customs and Border Protection, which may impose penalties for violations. CBP declined to comment on the unreported voyages.
Bloomberg identified the movements through a comparison of National Ballast Information Clearinghouse filings with port-call and cargo data from AIS, Vortexa, and IHS Maritime and Trade. None of the voyages identified through that review was included in MARAD’s regular public waiver reports.
The issue affects interpretation of MARAD’s published tally of completed movements. A review of MARAD’s September 16 spreadsheet found 255 completed movements linked to the original March 17 waiver and its May 18 extension, compared with 220 movements recorded in the dataset in mid-August. Reported cargoes include crude oil, gasoline, diesel, jet fuel, renewable fuels, ethanol and ammonia.
What it means for maritime operators
A further 90-day extension took effect on August 17 and is due to run until November 15. Unlike the earlier broad waiver, the current arrangement requires companies to submit a Vessel Availability Request before using a foreign vessel. MARAD then surveys the domestic market for a coastwise-qualified vessel, while the Department of War determines whether the proposed foreign-vessel movement may proceed.
MARAD had published four updates on the latest extension as of September 16, listing three completed movements: two propane cargoes delivered to Puerto Rico and an Eagle Ford crude shipment from Corpus Christi, Texas, to Chester, Pennsylvania. The filings also show that reports may be submitted after the statutory deadline. One propane voyage by Navigator Genesis was listed with a September 10 reporting deadline and a September 14 reported date.
Industry groups offered differing interpretations of the missing voyages. Critics said the findings indicate foreign competition in domestic trades was greater than official figures suggested, while waiver supporters argued that the additional movements demonstrated the waiver had enabled more domestic energy shipments.
The findings underline a reporting gap in the waiver framework: MARAD’s public database remains the principal source for tracking foreign-flag activity, but the agency says it cannot ensure that all required voyage reports are filed.