White House suspends the Jones Act for 60 days. Analysts see a gas price impact of 3 cents | Fortune
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White House suspends the Jones Act for 60 days. Analysts see a gas price impact of 3 cents | Fortune
"The Jones Act requires that goods hauled between U.S. ports be moved on U.S.-flagged vessels. Passed in 1920, this law aims to protect the American shipping sector - but it's also faced criticism over the years for slowing the delivery of goods, including critical aid during time of crisis."
"Among other things, the Jones Act mandates that ships carrying cargo and passengers between U.S. ports must be built in the United States and owned by Americans - effectively prohibiting foreign-flagged ships from this domestic trade. The vessels are also required to carry U.S. crews."
"The law can be waived in the 'interest of national defense,' the U.S. Maritime Administration notes, either through the Homeland Security or Defense Department. The Jones Act also was intended to ensure that the U.S. had its own merchant fleet in case of war."
The Jones Act, officially the Merchant Marine Act of 1920, requires goods transported between U.S. ports to use U.S.-flagged vessels built and owned by Americans with U.S. crews. Originally enacted to rebuild America's merchant fleet after World War I, the law protects the domestic shipping industry but has faced criticism for increasing shipping costs and slowing goods delivery during crises. The Trump administration announced a 60-day waiver of Jones Act requirements to counter rising oil prices and cargo disruptions stemming from the U.S.-Israel conflict with Iran. The law can be suspended under national defense provisions. However, analysts question whether this temporary waiver will meaningfully reduce consumer fuel costs.
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