The temporary waiver of the US Jones Act is widening employment options for international tankers as increased domestic energy movements expose capacity gaps in the coastwise-qualified fleet, according to Intermodal’s weekly market report.

Intermodal senior analyst Nikos Tagoulis said the exemption has been extended for another 90 days under a stricter framework. The measure preserves priority for coastwise-qualified vessels, while permitting foreign-flagged tonnage only when suitable domestic vessels are unavailable.

The process includes a Maritime Administration availability survey. Applicants must submit information covering the vessel, voyage and cargo to the relevant US authorities, which assess domestic availability and eligibility. Operators are also required to report completion of the voyage within 10 days.

The extension comes amid a marked increase in waterborne energy flows between US regions. US Energy Information Administration data cited by Intermodal showed combined tanker and barge shipments from the US Gulf Coast, or PADD 3, to the West Coast, or PADD 5, reached 190,000 barrels per day in April. That compared with less than 30,000 bpd in January and February, while volumes remained elevated in May.

The cargo mix also expanded beyond renewable diesel to include gasoline components, finished gasoline, jet fuel and crude oil.

Gulf Coast movements to the East Coast, or PADD 1, reached a record 1.2 million bpd in April, mainly consisting of gasoline blending components and distillate fuels. Crude shipments to the East Coast subsequently rose to a record 180,000 bpd in May. Intermodal partly linked the increase to Florida’s reliance on Gulf Coast refineries, which makes coastal vessel availability important for regional fuel supplies.

The waiver offers relief when coastwise-qualified tonnage cannot meet demand. Without access to foreign vessels, domestic cargoes may face higher freight costs, delays or alternative routing. Allowing international ships to participate on a voyage-by-voyage basis could enable movements that would otherwise be uneconomic or difficult to arrange.

However, Intermodal noted that the volumes remain modest and that some Gulf Coast cargoes may replace imports into other US regions. The overall impact on international tanker demand will therefore depend partly on which existing trades are displaced.

Route length is another factor. Gulf Coast-to-East Coast voyages are comparatively short and allow rapid vessel turnaround. West Coast movements require longer transits through the Panama Canal and may involve substantial repositioning, increasing ton-mile demand and keeping vessels occupied for longer periods.

Product tankers, particularly MRs, are expected to be the main beneficiaries, while increased crude movements could create additional cargo opportunities for Aframaxes. Intermodal said the wider significance may lie in providing international vessels in the US Gulf with another employment option, influencing positioning and prompt availability across the Atlantic Basin.

As the waiver remains temporary and approvals are issued for individual voyages, any additional tanker demand continues to depend on policy decisions.