Trump extends Jones Act waiver for U.S. oil and fertilizer shipping
The White House is extending temporary shipping flexibility for domestic energy and commodity movements as the administration seeks to ease transport constraints and lower fuel costs. The move gives companies and traders 90 more days to carry oil and other goods between U.S. ports on foreign-flagged vessels.
Highlights
- President Donald Trump extends the Jones Act waiver by 90 days, allowing oil and fertilizer shipments on foreign-flagged vessels within the U.S.
- The waiver extension aims to reduce fuel costs by giving energy companies more flexibility when U.S.-qualified shipping capacity is limited or costlier.
- Energy and commodity traders gain an extra 90 days to use foreign-flagged ships, preserving flexibility and potentially affecting freight rates and delivered prices.
Waiver extension and policy scope
As first reported by Bloomberg, President Donald Trump is extending by 90 days a waiver of requirements under the century-old Jones Act for shipments of oil and other commodities around the U.S. A White House official, speaking on condition of anonymity before the decision is public, says the step renews a policy aimed at reducing fuel costs.The Jones Act normally requires cargo moved between U.S. ports to travel on vessels that are American-owned, American-flagged and American-operated. The waiver allows energy companies and traders more time to use foreign-flagged ships for those domestic routes.
Implications for energy and shipping markets
The extension is likely to support greater flexibility in coastal transport for oil, fertilizer and other commodities, particularly for companies seeking alternatives when U.S.-qualified vessels are limited or more expensive. By widening access to shipping capacity, the administration is aiming to ease logistical pressure across domestic supply chains.The decision also highlights the continued tension between protecting the U.S. maritime industry under the Jones Act and lowering transportation costs for energy and commodity markets. For traders and producers, the additional 90-day window preserves an operational tool that can affect freight choices and delivered prices.
Previously, we examined oil price divergence as U.S. inventories rose and tensions around Iran and shipping risks persisted.