In March, the Department of Homeland Security waived the Jones Act at the Defense Department’s request after the Strait of Hormuz closed and energy prices spiked. It is the broadest waiver since 1950 and covers roughly 670 categories of energy and agricultural goods. The waiver allows foreign-built, foreign-flagged and foreign-crewed ships to carry cargo between American ports. It was extended in April, then extended again Aug. 17.
Every one of the foreign-flagged ships is taking work that would otherwise go to an American-built ship. The Shipbuilders Council said Chinese-built vessels and Chinese-affiliated operators are picking up business in American coastal trade under the waiver.
The Boilermakers, in conjunction with other trade unions, filed a Section 301 trade case in March over this issue.
The waiver was granted on national defense grounds. According to the American Waterways Operators, military need for this waiver has not been proved, which is the legal standard, and the waiver hasn’t decreased the price of gasoline.
“The longer the waiver runs, the easier it gets to argue the law was never needed,” said Director of Government Affairs Bridget Martin. “That argument is already being made.”
For more information:
- The May letter signed by over 120 maritime leaders on the waiver’s impact, urging Congress to reject any extension.
- The AFL-CIO Metal Trades condemn this month’s extension.
- Read the American Waterways Operators statement.
- More details on the waiver from the publication MarineLink, with the full timeline.
