BlockBeats News, March 18th: U.S. President Trump announced today that he will temporarily waive a century-old maritime law, the Jones Act, to reduce the transportation costs of oil, natural gas, and other commodities within the United States. This is his latest measure to address the energy price surge triggered by the Iran War. Trump has authorized foreign-flagged vessels to transport a range of commodities between U.S. ports in the next 60 days.
The Jones Act requires that goods transported between U.S. ports must be carried by vessels flying the U.S. flag, built-in-the-U.S., and U.S.-owned. This waiver exempts certain goods from these requirements, allowing foreign vessels to temporarily transport various products. The exemption covers coal, crude oil, refined oil products, natural gas, liquefied natural gas, fertilizers, products primarily derived from refined oil, and other energy derivatives.
However, some analysts believe that due to the significant scale of supply chain disruptions, the expected impact of this waiver is limited. This war has already caused what the International Energy Agency called the “largest supply disruption in the history of the global oil market.” Trump has also vowed to send the U.S. Navy to escort oil tankers through the Strait of Hormuz and promised to introduce a reinsurance plan to reduce costs, but specifics of the proposals are scarce.
