Jones Act Fuel Waiver Faces Nov. 15 Deadline


   
Miguel E. Andujar
DTN Refined Fuels Market Reporter

   DAVENPORT, FL (DTN) - A Jones Act waiver allowing certain foreign-flagged 
vessels to transport petroleum products between U.S. ports is due to expire 
Sunday (11/15), potentially reducing shipping flexibility for gasoline, diesel 
and jet fuel moving from the U.S. Gulf Coast to East Coast and West Coast 
markets.

   The Jones Act generally requires cargo transported between U.S. ports to be 
carried aboard vessels built, owned and registered in the United States and 
meeting U.S. crewing requirements. Under the current waiver, foreign-flagged 
voyages undergo individual reviews to determine whether qualified domestic 
vessels are available.

   The Department of Homeland Security has already extended the waiver twice, 
after issuing it the first time in March. It remains to be seen if the Trump 
administration will extend the grace another time.

   The last approval was for 90 days beginning August 17, according to guidance 
issued by U.S. Customs and Border Protection (CBP). Under the current 
authorization, eligible petroleum cargoes must be loaded aboard participating 
vessels by 11:59 p.m. ET on November 15.

   A White House official told media on Thursday (11/12) that no decision has 
been made on the matter. If a further waiver is approved, industry sources say 
the extension would preserve the stricter case-by-case, individual-voyage 
review introduced during the August extension that required vessel-availability 
checks through the Maritime Administration and Department of Defense before 
loading.

   CBP acknowledged a DTN inquiry regarding the November 15 deadline and a 
possible extension but did not provide additional information by publication 
time. No further extension has been confirmed through official agency 
announcements.

   First issued March 17, the waiver has provided additional transportation 
options for petroleum shipments between domestic ports, contributing to 
increased waterborne movements from the Gulf Coast during the spring, according 
to the Energy Information Administration.

   In an August 17 analysis of April and May shipping activity, EIA reported 
that Gulf Coast petroleum shipments to the West Coast reached 190,000 bpd in 
April, up from less than 30,000 bpd in January and February. The increase 
included gasoline blending components, finished gasoline, jet fuel and crude 
oil, and expanding flows beyond the renewable diesel shipments that had 
previously dominated the route.

   A similar increase occurred along the Gulf Coast-to-East Coast route, where 
petroleum shipments reached a record 1.2 million bpd in April, approximately 
11% above the previous high. Gasoline blending components accounted for a 
record 620,000 bpd, while distillate shipments reached 220,000 bpd, EIA 
reported.

   Although total waterborne movements to the East Coast declined 12% in May, 
crude shipments along the route increased to a record 180,000 bpd. The figures 
cover the entire East Coast - rather than New York Harbor alone - including 
Florida, which relies heavily on waterborne fuel shipments from the Gulf Coast 
due to its limited petroleum product pipeline connections.




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