US waives shipping regulation to ease fuel, fertilizer deliveries

By Jarrett Renshaw

WASHINGTON, March 18 (Reuters) – President Donald Trump’s administration on Wednesday announced a 60-day waiver of the Jones Act shipping law, temporarily allowing foreign-flagged vessels to move fuel, fertilizer and other goods between U.S. ports to combat price increases and supply disruptions from the Iran conflict.

White House spokeswoman Karoline Leavitt said the waiver represents “another step to mitigate the short-term disruptions to the oil market as the U.S. military continues meeting the objectives of Operation Epic Fury.”

The waiver, a rare exception to the century-old law, underscores the administration’s urgent response to a crisis that has sent gasoline prices sharply higher and disrupted critical fertilizer supplies for U.S. farmers.

The American Maritime Partnership, a Washington‑based advocacy group representing U.S. ship operators, said it was “deeply concerned” that the 60‑day broad waiver would be misused in a way that displaces U.S. workers and companies, arguing the exemption is intended only for immediate threats to military operations.

The group said the law sets a high bar for such waivers and warned they should not be used to reward foreign operators or undermine American maritime jobs, and pledged to closely monitor its implementation.

Relaxing the Jones Act allows coastal refiners and fuel distributors to access a larger pool of ships, including foreign-flagged vessels, to move gasoline, diesel and other petroleum products between ports.

While analysts caution the move is unlikely to significantly lower pump prices, it signals a pragmatic shift by Trump, who has long championed U.S. shipbuilding and maritime labor unions, key supporters of the Jones Act.

Brett Erickson, a managing principal at Obsidian Risk Advisors, said the Jones Act waiver – along with other efforts – will not have meaningful impact on prices.

“We’re completely at the mercy right now of Iran, and as long as they have a credible threat to maritime shipping across the Strait of Hormuz, we’re in a quagmire right now,” he said.

High energy prices carry significant political risks for Trump and fellow Republicans, who have long argued that their policies would keep fuel affordable for American consumers.

U.S. gasoline prices have surged since the start of U.S. and Israeli attacks on Iran on February 28. The conflict has effectively closed the Strait of Hormuz, the outlet for around a fifth of global oil and liquefied natural gas supplies.

The conflict has also disrupted fertilizer supplies, a major concern for U.S. farmers.

Under the Jones Act, goods shipped between U.S. ports must be carried on vessels that are U.S.-built, U.S.-flagged and mostly U.S.-owned. Maritime industry unions support the requirement, which sharply limits the number of tankers available for domestic shipments.

The administration’s waiver is one of several emergency measures being employed to counter the economic fallout from the Iran conflict, including releases from the Strategic Petroleum Reserve and adjustments to sanctions policy, as Washington seeks to stabilize markets ahead of domestic political pressures.

(Reporting by Jarrett Renshaw, Gram Slattery and Jonathan Saul, editing by Richard Valdmanis, Chizu Nomiyama and David Gregorio)