The White House is considering extending its waiving of the Jones Act, set to expire on 16 August, with some limitations, but has yet to make a final decision on the matter.
"There are still ongoing discussions as the administration continues to monitor how the waiver is being used," a White House official told Argus on 4 August.
The potential for a geographically restricted waiver was discussed as a prospective limitation to the Jones Act waiver in mid-July and is now being discussed alongside a cargo limitation, according to a Jones Act market participant.
Another adjustment currently under consideration by the White House is the potential for a more limited Jones Act waiver that would require a determination of non-availability of Jones Act vessels, two people familiar with the matter told Argus.
Opposition to renewing the waiver has been mounting. House Republicans urged President Donald Trump to restore the Jones Act at the start of July while news that the waiver would be extended once again surfaced in mid-July, prompting backlash among the US domestic maritime industry.
"A law intended for genuine emergencies is instead being used to benefit energy market participants, while American consumers and mariners bear the cost," Jennifer Carpenter of the American Maritime Partnership, a coalition of domestic maritime interests, said.
There has been a slight uptick in Jones Act tonnage requirements for mid-to-late August, driven by the uncertainty over whether the waiver will expire, a shipbroker familiar with the situation told Argus. Jones Act-compliant tonnage has largely been sidelined from the market since the waiver was issued on 17 March, to the benefit of foreign-flagged vessels.
"If there are any further announcements, they will be made directly by the president or the administration," the White House official added.
