Maritime unions: Jones Act waivers wouldn’t ease pain at the pump

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With the Strait of Hormuz effectively closed, Americans are already feeling pain at the gas pump. President Trump, who yesterday authorized the Department of Energy to release 172 million barrels from the Strategic Petroleum Reserve, is reportedly also considering issuing temporary Jones Act waivers that would allow oil and gas shipments between U.S. ports to be carried on foreign-flagged vessels.

Among those urging him to authorize those Jones Act waivers is Senator Ted Cruz.

American maritime unions and the Transportation Trades Department, AFL-CIO (TTD) have written President Trump opposing the waivers.

In their letter they say that waiving the Jones Act would do nothing to reduce gasoline prices.

“In fact,” they write, “the primary driver of gasoline prices is the cost of crude oil, not domestic shipping costs.

“Several studies have shown the impact of domestic shipping on nationwide fuel prices is negligible, and any marginal savings would be unlikely to reach consumers. A Jones Act waiver would instead create opportunities for foreign-flag operators that avoid paying U.S. taxes, rely heavily on low-wage labor, and operate under regulatory regimes that circumvent international labor and vessel safety standards in direct conflict of America’s national security and economic interests.

“At a time when the Administration is working to strengthen our nation’s shipyards and expand the international U.S.-flag fleet under the recently unveiled Maritime Action Plan (MAP), a Jones Act waiver would undermine these core policy objectives. The Jones Act is foundational to maintaining a strong merchant marine, sustaining maritime employment, supporting shipbuilding capacity, and preserving the domestic industrial base essential to national security. Waiving this law when U.S. vessels are available would outsource American jobs and weaken the long-term resilience of the maritime industrial base. While we genuinely share the collective goal of lowering energy costs for consumers, such waivers would do little to achieve that outcome while harming American workers and domestic industrial capacity.”

• Read the full text of the letter HERE