The Merchant Marine Act of 1920, known as the Jones Act, restricts coastwise shipping between US ports to US-flagged vessels. On March 17, 2026, the Trump administration granted a temporary 60-day waiver (expiring May 17, 2026) to allow foreign-flagged vessels to transport certain commodities, primarily to address energy supply disruptions linked to the Iran conflict. The waiver was requested by the Department of Defense under Section 501(a) of the Act, which requires a finding that it is necessary for national defense due to an adverse effect on military operations.
Key details of the waiver:
- Duration: 60 days from March 17, 2026, to May 17, 2026, at 11:59 p.m. EST.
- Scope: Covers approximately 659 commodities, including energy products, fertilizers, and coal.
- Conditions: Transportation must occur within the waiver parameters and comply with specific notification, reporting, and documentation requirements.
- Implementation: Foreign vessels remain subject to normal entry/exit rules, and carriers must file Form 1302 for inward cargo declarations, specifying the waiver context.
The waiver reflects tensions between the Jones Act's protectionist goals and national security needs. Stakeholders must verify eligibility, plan voyages within the waiver period, and adhere to CBP and MARAD reporting obligations. The long-term impact on the US coastwise fleet and the future of waiver authority remain uncertain, raising policy questions about balancing domestic industry and security objectives.
Compliance steps include:
- Verifying waiver eligibility for cargo and routes.
- Providing advance notification to CBP.
- Filing required reports with MARAD within 10 days of voyage completion.
- Maintaining meticulous records.
- Reviewing contracts to assess risk allocation.
Given the significant penalties for Jones Act violations, entities considering foreign-flagged vessels must strictly adhere to waiver conditions and seek legal counsel to navigate compliance requirements.
