President Trump is taking our advice with a bold step to make it less costly for oil, natural gas, gasoline, jet fuel, diesel, and fertilizer to reach U.S. ports. He has waived the infamous Jones Act for 60 days.
The Jones Act is an outdated 106 year-old maritime law that raises costs for U.S. consumers by requiring that any ship traveling between two U.S. points be U.S. manufactured, owned, and crewed.
If the threatened shutdown of the Hormuz Strait persists, the waiver might provide a valuable tool for mitigating price increases in the U.S. The Trump move covers coal, oil, natural gas and many other energy derivatives.
The 60-day waiver is far longer than previous ones which have averaged a week or so and only covered oil. The Trump waiver also covers oil, coal, natural gas and almost all other energy derivatives.
The broad scope of a 60-day waiver applying to multiple commodities could create real momentum for permanent Jones Act repeal, which until now has been blocked by maritime unions and U.S. shipbuilders.