Congress Urged to Extend Jones Act Waiver for Two Years

A RealClearMarkets article by James Carter argues that Congress should authorize a two-year suspension of the Jones Act rather than continue the current short-term waiver. The Jones Act, enacted in 1920, generally requires vessels carrying goods between U.S. ports to be American-built, American-owned, American-flagged, and American-crewed. The law is intended to preserve a domestic maritime industry that can support the country in an emergency. The article contends that these restrictions also limit shipping options for U.S. buyers and sellers, and that the temporary waiver offers evidence of what additional options might mean for domestic cargo movements.

The article cites an October 15 analysis by the Cato Institute, reporting that foreign-flagged vessels had completed more than 300 voyages under the waiver and carried over 80 million barrels of cargo since March 17. Deliveries to the West Coast, Alaska, and Hawaii reached 20.7 million barrels in about seven months, exceeding the previous full-year record of 16.1 million barrels set in 2024. The article says that earlier record included tanker and barge deliveries, 98 percent of which were renewable diesel. These figures are presented as evidence of increased movement during the waiver period; they do not establish that Congress will extend or broaden the relief.

The piece highlights Puerto Rico as another example of potential logistics effects. In less than seven months, foreign vessels delivered 10.1 million barrels of petroleum products from the mainland, described as roughly four times the island’s average annual mainland deliveries from 2004 through 2025. Mainland propane shipments reached 1.2 million barrels, more than three times the combined total for those preceding 22 years. The article further states that there are no Jones Act-qualified tankers capable of carrying bulk propane, illustrating how vessel availability may affect whether suppliers can reach customers. For contractors and procurement teams serving Alaska, Hawaii, Puerto Rico, or other shipping-dependent markets, these examples may inform logistics assessments, but they remain the article’s account of activity under a temporary waiver.

The central procurement implication is uncertainty over duration. The article says the waiver has been issued and extended in 60- and 90-day increments and is scheduled to expire November 15, 2026. It argues that short extensions make it harder for businesses to arrange the multiyear contracts used to secure vessels, supplies, and terminal access, and advocates a two-year suspension to give businesses more time to develop routes, shipping agreements, and distribution investments. That outcome is prospective: the article is an advocacy piece, not an enacted change or a procurement announcement. Government contractors should distinguish the proposed suspension from current law, verify applicable requirements and waiver status when making sourcing decisions, and avoid assuming that foreign-flagged shipping options will remain available beyond the stated expiration date.

• The existing waiver is scheduled to expire November 15, 2026; treat that date as a near-term logistics planning consideration.
• James Carter of RealClearMarkets advocates that Congress authorize a two-year suspension; this is a proposal, not enacted policy.
• The Jones Act was enacted in 1920 and generally sets U.S.-built, U.S.-owned, U.S.-flagged, and U.S.-crewed requirements for vessels moving goods between American ports.
• The article cites more than 300 voyages and over 80 million barrels carried by foreign-flagged vessels under the waiver since March 17, based on an October 15 Cato Institute analysis.
• West Coast, Alaska, and Hawaii deliveries reached 20.7 million barrels in about seven months, above the prior full-year record of 16.1 million barrels set in 2024.
• The article reports 10.1 million barrels of mainland petroleum deliveries to Puerto Rico in less than seven months and 1.2 million barrels of mainland propane shipments.
• The article says there are no Jones Act-qualified tankers capable of carrying bulk propane; assess vessel availability and supply-chain exposure without assuming the waiver will continue.
• A longer suspension could, if enacted, give businesses greater certainty to consider routes, multiyear shipping and supply agreements, and terminal access; these outcomes are not guaranteed.
• Procurement teams should confirm current legal and waiver requirements before changing sourcing assumptions, contract terms, or logistics plans.