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Waiver under pressure
A new Navigistics Consulting report has intensified pressure on the Trump Administration’s 150 day Jones Act waiver, arguing that the measure has failed to cut fuel prices, failed to meet a military necessity test and shifted domestic cargo to foreign flag tankers.
The report, released through the American Maritime Partnership, reviewed the initial waiver period using MARAD data covering 659 commodities and 78 voyages. It said none of the voyages addressed an immediate adverse effect on military operations.
Foreign ships gain domestic cargo
Navigistics said Jones Act tankers, ATBs and barges were available for 58 of 67 qualifying waiver voyages, equal to 87%. The report also said 23.1% of waiver vessels were built in China, while 18.5% were under Chinese control.
That finding gives the waiver a sharper political edge. A policy presented as an energy security measure is now being challenged by maritime groups as a transfer of U.S. domestic cargo to foreign competitors.
Fuel price argument weakens
The report found no credible evidence of pump price relief during an 11 week review from March 23 to June 1. It also noted that only about 6.5% of U.S. gasoline moves on Jones Act vessels.
Navigistics compared selected routes and found that foreign flag shipping was not always cheaper. On New Orleans to Port Everglades gasoline movements, foreign rates were listed at $0.097 per gallon against $0.091 for Jones Act transportation.
Exports complicate shortage case
The report also said the U.S. exported about 731 million barrels of petroleum during the waiver window, with crude, diesel and jet fuel exports above prior year baselines.
Jennifer Carpenter, president of the American Maritime Partnership, said the waiver was not delivering for consumers and was handing cargo to foreign fleets at the expense of U.S. shipyards, carriers and mariners.
The current extension is set to expire on August 17.
