Jones Act Waiver Cost Industry $2.6bn in Delayed Investment, AMP Says

U.S. maritime operators have reported more than $2.6 billion in delayed investment in new vessels and shipyard expansion after nearly eight months of Jones Act waivers — and the industry's main coalition wants the exemptions to end on November 15. The American Maritime Partnership (AMP) made that case to President Donald Trump in a letter sent to the White House on Election Day, November 3, arguing the emergency measure has failed its own test: the maximum estimated effect on retail gasoline prices is less than half a cent per gallon.

"The waiver responded to an extraordinary energy disruption, but after eight months, the record is clear: continuation of the waiver threatens to curtail your ambitious agenda to unleash investment that will restore American maritime dominance," AMP President Jennifer Carpenter wrote in the letter.

The Trump administration first issued the waiver on March 17, responding to energy market disruptions caused by the war with Iran. The measure allows foreign-flagged vessels to carry certain cargoes between U.S. ports — traffic normally reserved for qualified American vessels under the Jones Act. The administration extended it twice, most recently in August, pairing the renewal with new review requirements.

What changed in August?

The August revision requires the Maritime Administration to determine whether qualified U.S.-flagged vessels are available before any foreign ship can be authorized to move domestic cargo. AMP concedes the narrower process has reduced foreign-vessel activity while keeping essential cargo moving. The coalition still argues the waiver itself is doing lasting damage.

AMP's board speaks for a broad cross-section of the domestic industry: vessel operators, shipbuilders, dredging companies and maritime labor organizations. Its leadership includes representatives from Crowley, Matson, Kirby, TOTE, Pasha Hawaii and the American Waterways Operators.

How much did consumers actually gain?

By AMP's reading of published analyses, almost nothing. The organization says no study has demonstrated a reduction in retail fuel prices attributable to the waiver, with the ceiling of any measurable effect at under half a cent per gallon.

The coalition argues foreign vessels in domestic trades cannot fix the real drivers of energy prices — disrupted global shipping routes, constrained inventories and refining economics. Foreign interests, not American carriers, have captured much of the benefit, AMP claims. More than 28% of reported waiver voyages involved vessels or companies directly linked to China, according to the letter, which names COSCO specifically and flags foreign crews on domestic routes, including Russian mariners.

The investment figures carry the weight of the argument. Beyond the $2.6 billion in delayed vessel and shipyard commitments reported by industry participants, AMP cites more than $700 million in planned Jones Act dredging vessel investments deferred amid waiver uncertainty. Both figures come from industry reports cited by the organization. Shipowners and lenders, AMP argues, need confidence in long-term domestic cargo demand before committing capital to assets that stay in service for decades.

Is the waiver's legal basis still intact?

Lawmakers and labor are asking the same question. Nine maritime labor organizations recently raised concerns about compliance with federal reporting requirements, immigration laws and the national defense justification for foreign-vessel movements, as gCaptain reported last week. Congressional lawmakers have questioned whether a prolonged waiver remains consistent with the national defense authority it was issued under.

AMP maintains that letting the current waiver expire would not tie the administration's hands in a genuine emergency. Existing authority under 46 U.S.C. 501(b) permits targeted waivers when national defense needs cannot be met by available U.S. vessels — a narrower tool than the blanket exemption now in force.

What happens on November 15?

The decision rests with the White House. Under current Customs and Border Protection guidance, cargo moving under the existing waiver must be loaded before 11:59 p.m. Eastern Time on November 15. For AMP, the deadline is a chance to prove the administration's shipbuilding agenda extends to the domestic market that sustains it.

"Let American mariners carry American cargo. Let American shipyards build the vessels America needs. Let American investment strengthen American maritime power," Carpenter wrote.

If the waiver lapses, U.S.-flag operators and shipyards regain exclusive access to coastwise trades, while foreign carriers that have moved waiver cargo since March lose that window — and the August review process at the Maritime Administration becomes the sole pathway for any future foreign-vessel authorization.