Holland & Knight Alert on 60-Day Jones Act Waiver and Possible FMC Engagement Cited in Lloyd's List

A recent Lloyd's List article cited a Holland & Knight alert about a 60-day Jones Act waiver as a result of supply chain disruptions stemming from the conflict in Iran. The alert detailed what the waiver covers and gauged industry reactions.

The U.S. Department of Homeland Security announced the temporary waiver following a request from the U.S. Department of War, and the move aims to address short-term shipping disruptions while the U.S. military continues operations in the Middle East. The Jones Act requires goods shipped between U.S. ports to be transported on U.S.-built, U.S.-flagged and predominantly U.S.-crewed vessels; the waiver allows foreign-flagged vessels to carry 659 types of commodities, including oil, gas and fertilizer products, in the U.S. domestic market.

Lloyd's List referenced Holland & Knight's alert when noting guidance on the waiver does not specify restrictions on locations or routes, meaning the temporary lift applies to points in all U.S. states, Alaska and Hawaii included. The Firm was also cited as highlighting the increasing involvement of the Federal Maritime Commission (FMC) in maritime policy matters, such as recent investigations of flagging practices of foreign registries. Holland & Knight attorneys cautioned that although the FMC historically has not touched Jones Act waivers, these developments suggest it could consider if there is a role it should be playing in the regulatory considerations.