White House Plans Maritime Law Suspension to Combat Surging Fuel Prices
Washington, Thursday, 12 March 2026.
The administration plans to waive a century-old shipping law to reduce fuel costs, though experts warn current global tanker rates could actually make foreign shipping more expensive.
Navigating a Century-Old Maritime Bottleneck
On Thursday, March 12, 2026, the Trump administration instructed U.S. oil companies and shipping groups to prepare for a temporary waiver of the Jones Act [2]. The planned 30-day exemption is currently under development and aims to broadly facilitate the movement of energy commodities and fertilizer between U.S. ports [1]. By allowing foreign tankers to transport goods—such as moving oil from the Gulf Coast to East Coast refineries—the White House intends to alleviate surging energy costs [1]. These price spikes have been severely exacerbated by the ongoing war in Iran, which drove Brent crude prices to $119.50 per barrel earlier this month on March 3, marking the highest level since the 2022 Russian invasion of Ukraine [3].
The Illusion of Cheaper Foreign Freight
While the administration’s premise relies on the assumption that foreign tankers are generally cheaper [1], current maritime market dynamics tell a more complex story. According to Sam Norton, CEO of Overseas Shipholding Group, substituting a foreign-flagged tanker for a Jones Act vessel could actually increase fuel delivery costs under present conditions [5]. Freight rates for international oil tankers are calculated using the Worldscale system, which covers over 350,000 voyage permutations [5]. As of March 9, 2026, the Worldscale flat rate for a shipment from Houston to New York is $10.88 per metric ton [5]. However, the current market rate stands at WS410, which translates to $44.61 per metric ton, or 14.5 cents per gallon [5].
A Shrinking Fleet and Territorial Tolls
The economic friction caused by the Jones Act extends far beyond mainland fuel prices, placing a heavy financial burden on U.S. territories that rely almost entirely on maritime imports [6]. In Guam, for example, the price of a gallon of milk exceeded $12 in 2025 [6]. A historical study by the government of Guam estimated that residents paid $1,139 annually above fair-market shipping rates in 1996, a figure that adjusts to approximately $2,300 in 2026 [6]. This premium represents roughly 4 percent of the island’s median household income [6]. Similarly, Puerto Rico is forced to pay more for liquefied natural gas (LNG) than the neighboring Dominican Republic because there are zero Jones Act-compliant LNG tankers in existence, compelling the island to source LNG from foreign nations, including Russia [3].
Legislative Hurdles and the Push for Repeal
Implementing a waiver today is legally more stringent than in previous decades. A January 2021 amendment to the law dictates that before any waiver can be issued, there must be a definitive finding that no U.S.-flag vessels are available under all circumstances [4]. Furthermore, waivers issued for non-Department of Defense purposes are strictly limited to an initial 10-day period, which can only be extended up to a maximum of 45 days [4]. This legal framework means the Trump administration’s proposed 30-day exemption [1] will require rigorous justification regarding the absolute unavailability of domestic tankers to meet current energy transport needs [4].