The US government is extending the exemption from the Jones Act for a further 90 days. However, it applies only to selected energy and raw materials shipments.
This means that foreign vessels may continue to transport certain goods between US ports. According to the White House, the measure is intended to ensure supplies to the military and key industrial sectors. The new regulation is more narrowly defined than previous exemptions. It applies, amongst other things, to goods such as petrol, diesel, crude oil, petrochemical products, natural gas and fertilisers.
Before granting an exemption for a single voyage, the US Department of Defence must also consult the Maritime Administration. The aim is to check whether a vessel meeting the requirements of the Jones Act is available.
The extension of the exemption is intended to ensure “that our military and key industries continue to have unhindered access to vital resources”, explained Taylor Rogers, White House spokesperson.
Old law rendered ineffective by the Iran War
The Act, passed in 1920, stipulates that transport between US ports must, in principle, be carried out by ships that were built in the US, are US-owned and are crewed by US nationals.
The government first granted an exemption in March and extended it in April. This was prompted by rising energy prices as a result of the war with Iran and the blockage of shipping through the Strait of Hormuz.
According to the AAA motoring organisation, the average price of petrol in the US stood at around $4.01 per gallon on Monday. That was 87 cents more than at the same time last year.
The White House attributes the relaxation of restrictions to date to an increase in shipments between US ports. A government official put the increase at up to 50 per cent. Shipments of petrol, diesel and aviation fuel have reportedly risen.
