Trump’s Jones Act Waiver Helped Avert Fuel Shortages Across These Key US Regions
The Department of Homeland Security has issued the broadest Jones Act waiver since at least the 1950s, just weeks after the US-Iran conflict erupted. The measure has allowed foreign-flagged vessels to transport fuel, crude oil, fertilizer, and other essential goods between US ports, bypassing domestic shipping restrictions to mitigate supply chain disruptions across various U.S. regions.
The Jones Act, a century-old law requiring goods transported between U.S. ports to be carried aboard U.S.-Built, US-owned, and US-crewed vessels, was immediately waived in the early days of the U.S.-Iran conflict by the Trump administration.
As of Friday, the waiver has entered its 135th day, suggesting that the administration is continuing to protect domestic supply chains and curb energy prices by temporarily easing maritime protectionist restrictions.
A recent Reuters report stated that the Trump administration was considering another extension of the waiver.
The Cato Institute’s Jones Act Waiver Tracker shows that nearly 50 million barrels have been moved since the waiver took effect on March 17.
The tracker indicates that the waiver sharply expanded domestic fuel movements, allowing foreign-flagged vessels to supply regions where limited U.S. shipping capacity, high transportation costs, and vessel shortages had constrained trade.
After 135 days, waiver shipments to the West Coast totaled 13.9 million barrels, equivalent to 108% of the region’s projected full-year baseline. Puerto Rico received 5.02 million barrels, equal to 134% of its normal annual pace, while New England’s 1.25 million barrels represented an increase of 215%. Gulf Coast shipments were 426% above the projected baseline, albeit from a much smaller historical base.
The data suggest the waiver is unlocking trade routes that were previously uneconomical or unavailable under Jones Act restrictions.
The largest effects are being seen in isolated or import-dependent markets, particularly the West Coast, Puerto Rico and New England, while the impact on the well-supplied Lower Atlantic remains marginal. Cargoes have included gasoline, diesel, jet fuel, renewable diesel, propane and ammonia.
Without the waiver, import-dependent markets such as those in California would likely have faced severe fuel shortages, with gasoline prices potentially surging well above $10 per gallon. The quick action by the Trump administration and the Energy Department appears to have mitigated supply disruptions in those regions where fuel shipments expanded the most.
Recall that suspending the Jones Act was one of six policy options identified by JPMorgan’s head of commodity research, Natasha Kaneva, for how the Trump administration could contain energy costs at the pump. The latest shipment data suggest that this option has played a material role in stabilizing vulnerable regional markets.
Tyler Durden
Fri, 07/31/2026 – 17:20