Jones Act Waiver Doesn't Mean It's Open Season for U.S. Ports

Holland & Knight's alert on a 60-day Jones Act waiver as a result of supply chain disruptions stemming from the conflict in Iran was cited in a Lloyd's List article detailing what the waiver covers and gauging 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 look into them now.

READ: Jones Act Waiver Doesn't Mean It's Open Season for U.S. Ports (Subscription required)