Seven maritime labor unions have opposed the idea of waiving the Jones Act temporarily, which would allow ships carrying energy and agricultural supplies to move more freely between U.S. ports. The unions believe that a temporary rule change will not help reduce gas prices in the country at a time of war with Iran.
Under the Jones Act, goods shipped between U.S. ports must be transported through vessels that are U.S.-owned, U.S.-flagged, and U.S.-built. However, these requirements limit the number of available vessels.
While labor unions display strong support for the Jones Act, the Trump administration is considering waiving it for a short period to tackle logistical challenges. Press secretary Karoline Leavitt said on Thursday:
“In the interest of national defense, the White House is considering waiving the Jones Act for a limited period of time to ensure vital energy products and agricultural necessities are flowing freely to U.S. ports.
“This action has not been finalized.”
Sources close to the matter told Reuters that an announcement of a 30-day waiver could be expected soon, “aimed at combating spiking fuel prices and other disruptions since the start of the U.S.-Israeli war on Iran.”
Analysts have said that only a few concrete options remain to control oil prices amid an ongoing war, where Iran continues to target oil tankers in the Strait of Hormuz, through which one-fifth of the world’s oil supply flows.
The Jones Act waiver is intended to expedite deliveries and reduce shipping costs. However, the maritime unions opposed the idea, saying that crude oil prices influence gasoline prices, and not shipping costs.
They wrote in a letter that “foreign-flag operators that avoid paying U.S. taxes, rely heavily on low-wage labor, and operate under regulatory regimes that circumvent international labor and vessel safety standards in direct conflict of America’s national security and economic interests.”
On the other hand, the American Farm Bureau Federation asked the Trump administration for a Jones Act waiver to enhance domestic transport supplies, warning that shipping disruptions could increase the prices of fertilizer.
Patrick De Haan, an analyst with fuel price tracker GasBuddy, stated that a Jones Act waiver could help slow the increase in regions that depend heavily on imports, such as the Northeast and the West Coast. However, the major price influence will come from the events taking place in the Middle East.
