SIMIC

As it has done in the past, the American Maritime Partnership (AMP), representing the domestic maritime industry, said any calls for waivers of Jones Act provision are unjustified.

"The cost of gasoline is primarily driven by the price of crude oil and the processing of gas, which is spiking. The Jones Act is not a cost driver for increased gas prices, representing an average of less than one cent per gallon of the overall cost of gasoline. Of note, not a single Jones Act waiver has even been requested this calendar year," said Ku'uhaku Park, President of the AMP.

"The cost of gasoline is primarily driven by the price of crude oil and the processing of gas, which is spiking," said Mr Park.

The Jones Act requires that goods transported by water between two points in the United States is carried on ships that are US built, crewed, owned, and registered.

Limited waivers of Jones Act requirements are sometimes issued by the Department of Homeland Security in times of crisis - like after major hurricanes or during the Colonial Pipeline cyberattack and shutdown in 2021 - usually when there is no Jones Act fleet capacity available.

Waivers allow cheaper foreign ships to transport energy products between two points in the United States, but the standard for obtaining them is high and typically reserved for national security purposes - not cost savings.

AMP was responding ExxonMobil statement highlighting its efforts to boost US oil and gas supplies and refining capacity. The statement also a mentioned emergency "provisions" such as waivers of the Jones Act as one short term solution.

"In the short term, the US government could enact measures often used in emergencies following hurricanes or other supply disruptions - such as waivers of Jones Act provisions and some fuel specifications to increase supplies," said ExxonMobil.