US Extends Jones Act Waiver with New Vessel Availability Test
The US has extended an emergency Jones Act waiver through November 15, 2026, while introducing a voyage-by-voyage review intended to give coastwise-qualified vessels an opportunity to carry eligible domestic cargo before foreign tonnage is authorized.
US Customs and Border Protection said the Department of Homeland Security approved the second extension of the waiver, which was initially issued on March 17 at the request of the Department of War. The extension takes effect on August 17 and remains available until 11:59 p.m. Eastern Time on November 15. Covered cargo must be loaded before that deadline.
From August 17, companies seeking to use a foreign-flag vessel must file a Vessel Availability Request with the Department of War and the Maritime Administration before starting the voyage. The submission must identify the vessel and operator, planned voyage dates, loading and discharge ports, cargo type and quantity, shipment frequency, and the national-defense basis for the transportation.
MARAD will then survey the market to establish whether a coastwise-qualified vessel is available. US-flag operators will generally have 24 hours to respond. The Department of War will consider the survey results when deciding whether the proposed foreign-flag movement qualifies under the waiver.
If suitable coastwise-qualified tonnage is available, the domestic vessel will be offered the opportunity to perform the transportation. The revised procedure therefore replaces the waiver’s broader application with a voyage-specific review that tests US vessel availability before foreign capacity can be used.
The Jones Act, formally Section 27 of the Merchant Marine Act of 1920, generally requires cargo moving between US points to be carried by vessels that are US-built, US-owned and qualified for coastwise trade. Navigation requirements may be waived in certain circumstances connected to national defense.
The original waiver followed disruption to global energy markets linked to the Middle East conflict and shipping interruptions in the Strait of Hormuz. The administration had previously extended the measure, but the latest revision represents a more substantial effort to direct eligible shipments toward the domestic fleet while retaining foreign vessels when US tonnage is unavailable.
CBP also updated the list of products potentially eligible from August 17. It contains more than 32,000 Harmonized Tariff Schedule entries, including categories covering ethanol and soybean oil. MARAD records cited in the source show that foreign vessels have already carried three ethanol shipments and one cargo of crude degummed soybean oil under the waiver.
MARAD’s latest completed-movements spreadsheet records 220 reported voyages since March. Cargoes included crude oil, gasoline, diesel, jet fuel, renewable diesel, ethanol, ammonia and other energy products.
Foreign-vessel operators must continue notifying CBP about authorized movements and supplying vessel, cargo, carrier and port details. Vessel owners, operators and waiver applicants must also report completed foreign-flag voyages to MARAD within 10 days.
The availability test follows criticism from US maritime interests that foreign ships could receive domestic cargo even when Jones Act tonnage might be able to undertake the work. Under the revised process, MARAD will assess the domestic market before each proposed voyage.