Jones Act Waiver Extended 90 Days as Foreign Tankers Remain Eligible for U.S. Energy Trades

The U.S. administration has extended the current Jones Act waiver for another 90 days, allowing foreign-flag vessels to remain eligible to transport certain energy and agricultural commodities between U.S. ports after the existing waiver expires on August 16. The new extension takes effect August 17, 2026, continuing a policy first introduced on March 17 as disruptions tied to the Iran conflict affected global energy supplies and U.S. fuel transportation. The latest version is narrower than the previous blanket waiver. Individual voyages will now be reviewed on a case-by-case basis, with the Pentagon consulting the U.S. Maritime Administration before exemptions are granted. Covered cargo remains focused on energy products and agriculture-related commodities, including fuels, fertilizers and soybean oil. Government data showed approximately 208 exemptions had been used through August 3 during the first four and a half months of the program.

Ship Universe Operator View

Operator Impact Snapshot

Foreign-Flag Access
HIGH

Another 90 days of eligibility

Approved foreign vessels can continue participating in covered U.S.-to-U.S. cargo movements beyond August 16.

Approval Process
HIGH

Blanket treatment is ending

The latest extension moves toward individual voyage review rather than relying on the broader blanket exemption structure.

Coastwise Competition
HIGH

Foreign tonnage remains available

Approved foreign ships can still enter trades normally reserved for Jones Act-qualified vessels.

Cargo Scope
MEDIUM

Energy remains central

The extension continues to focus on energy products and agriculture-related commodities including fertilizer and soybean oil.

Voyage Certainty
WATCH

Approval becomes voyage-specific

A qualifying cargo category does not automatically guarantee that a proposed foreign-flag movement will receive an exemption.

90 Days Length of the new extension
Aug. 17 New waiver period begins
208 Reported exemptions through Aug. 3
Case-by-Case New voyage approval approach
MARAD Consultation added to review process

Policy Structure

Jones Act Waiver Timeline and Operating Rules

The latest extension keeps foreign coastwise participation available while changing the approval mechanism used for individual voyages.

Item Earlier Position Latest Position Operational Detail Status
Initial Waiver Issued March 17, 2026 60-day emergency period Allowed qualifying cargo to move coastwise aboard foreign-flag vessels. COMPLETED
First Extension Started May 18 90 additional days Extended the emergency framework through August 16. EXPIRING
New Extension Announced August 10 Another 90 days The next waiver period begins August 17, 2026. APPROVED
Approval Method Broad waiver treatment Individual voyage review The extension shifts away from automatic blanket treatment for participating foreign vessels. CHANGED
Federal Review Earlier emergency framework Pentagon consultation with MARAD Voyage circumstances will be reviewed before an exemption is granted. NEW
Energy Products Primary waiver category Remain included Fuel and other energy movements continue to sit at the center of the program. ELIGIBLE
Agriculture Cargoes Selected products included Remain within scope Fertilizer and soybean oil are among the agriculture-linked products identified. ELIGIBLE
Waiver Usage March through Aug. 3 About 208 exemptions The total provides an indication of the scale of foreign coastwise participation created by the waiver. ACTIVE
Gulf to West Coast Historically limited tanker flow Foreign capacity expanded movements About 1.59 million barrels reportedly moved from the Gulf Coast to the West Coast during the first 50 days. EXPANDED
Puerto Rico LPG No Jones Act LPG tanker capacity Foreign LPG carriers became usable The waiver enabled bulk mainland U.S. propane movements using international LPG tonnage. OPENED
208
Reported exemptions had been used through August 3. The next 90-day period keeps the mechanism alive, but the approval process becomes more selective as individual voyages come under review.
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Interactive Freight Model

Jones Act Waiver Coastwise Freight Comparator

Compare a Jones Act-qualified coastwise movement with a foreign-flag voyage operating under an approved waiver, including estimated approval delay and administrative costs.

Editable scenario: Freight rates and administrative costs below are illustrative rather than live charter quotations. Enter vessel or cargo-specific assumptions to test the economics of a coastwise movement.
Jones Act Voyage Cost $0
Foreign Base Freight $0
Approval Delay Cost $0
Adjusted Waiver Cost $0
Total Cost Difference $0
Difference Per Barrel $0
Break-Even Foreign Rate $0
Total Cargo Value $0

Estimated Transportation Cost

Jones Act Vessel
$0
Approved Waiver Voyage
$0
Cost Difference
$0
Scenario Result
Calculating...

Foreign Freight Break-Even $0/bbl
This calculator compares user-entered transportation assumptions only. It does not determine Jones Act eligibility or predict whether a foreign voyage will receive a waiver. Actual costs can include charter rates, fuel, insurance, demurrage, port charges, cargo handling, taxes and other contractual expenses.
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