New waiver limits exempt cargo to energy, fertilizer, soybean oil
President Donald Trump on Monday extended for 90 days a waiver allowing foreign ships to transport goods, including oil, fertilizers and other fossil fuel products, among U.S. ports.
The extension, which takes effect August 17, suggests the U.S. might be preparing for continued price pressures as the Strait of Hormuz, a primary waterway for shipping oil and natural gas, remains effectively closed because of the war.
Trump first waived the Jones Act on March 17 so that it would be easier to transport oil and refined fuels among ports, reducing price pressures after the start of the war with Iran.
Unlike previous extensions, the Pentagon will consult with the Maritime Administration to decide which voyages are exempt from the 1920 law containing the Jones Act.
The waiver applies only to energy cargo and agriculture-related commodities, such as fertilizers and soybean oil.
Taylor Rogers, a White House spokeswoman, said the administration extended the waiver “to ensure our military and key industries maintain uninterrupted access to critical resources.” Rogers added that the waiver has increased domestic deliveries of gasoline, diesel and jet fuel.