this trump card The government is planning to temporarily relax century-old maritime rules while it looks for ways to combat the rising problem. Oil and the price of gasoline during the war. Iran. Officials are considering short-term exemptions that would allow foreign ships to help transport fuel between U.S. ports, according to people familiar with the matter.
A 30-day exemption from the Jones Act would allow foreign tankers to help supply East Coast refineries with fuel from the Gulf Coast and other parts of the United States. Those who spoke about the plan were not authorized to discuss the matter publicly.
What is the Jones Act?
The Jones Act is an important part of U.S. maritime law that has been in place since 1920. It requires that cargo transported between U.S. ports must be carried on ships built, owned and operated by Americans.
The law is actually Section 27 of the Merchant Marine Act of 1920, which was designed to maintain and support the U.S. Merchant Marine. It was introduced after World War I to strengthen the American shipping industry.
Also read: Oil prices top $100 a barrel amid Middle East conflict, Trump to re-examine options: report
Why are laws made?
U.S. Senator Wesley Jones of Washington proposed a law that would give his state a shipping monopoly over Alaska. Congress passed this legislation to support the U.S. shipping industry after World War I.
The law is considered protectionist, meaning it protects domestic businesses. It focuses on maritime trade and cabotage, the transport of goods within the same country.
Under the regulations, cargo transported between U.S. ports must be transported on ships built in the United States and owned and operated by U.S. citizens or permanent residents.
While the law protects the domestic shipping industry, it also increases shipping costs. This particularly affects non-continental U.S. territories that rely heavily on imported goods, such as Hawaii, Alaska and Puerto Rico.
Because only U.S.-built and operated ships can transport cargo between U.S. ports, that means fewer ships are available, which will make shipping more expensive.
Why the government might issue exemptions
The possible waivers come as President Donald Trump considers options to address rising energy prices amid the war with Iran.
On Wednesday, the U.S. government announced it would release 172 million barrels of oil from the Strategic Petroleum Reserve as part of an internationally coordinated effort to release 400 million barrels of oil into global markets.
Allowing foreign tankers to temporarily transport fuel between U.S. ports could help increase supplies to East Coast refineries and ease price pressures.
