The Jones Act, a federal maritime law from 1920, mandates that ships carrying goods between U.S. ports must be U.S.-flagged, built, and mostly owned and crewed by Americans. Proponents argue it prevents Chinese dominance in U.S. shipping lanes. However, recent events suggest revising the Jones Act might benefit Americans.
Since March 17, the law has been suspended for fuel and fertilizer shipments. Initially, President Trump waived the law for 60 days due to national security concerns linked to the conflict in Iran, later extending it for two more 90-day periods with specific conditions. These temporary waivers allowed freer movement of shipments and demonstrated how the Act’s restrictions have historically limited U.S. shipping patterns.
From the waiver’s start until September 17, 200 ships completed 259 voyages delivering gas, oil, and other commodities domestically. Remarkably, less than 3 percent of these trips involved Chinese-owned ships. In contrast, Danish, Greek, Japanese, and Singaporean companies represented 50 percent, while Switzerland and Monaco enterprises handled 20 percent. U.S.-based companies accounted for 25 percent of the waiver shipments.
The waiver facilitated greater access to U.S.-made products. Notably, nine shipments of anhydrous ammonia—a critical fertilizer component—moved between Gulf Coast ports. Typically, such shipments are rare due to the absence of liquified petroleum gas tankers in the Jones Act fleet. Outlying regions like Puerto Rico and Hawaii also benefited. Puerto Rico received bulk propane shipments, while Hawaii acquired fuel and propane from the Gulf Coast, significantly meeting its propane demands.
The waiver period clearly illustrates that U.S. companies would increase domestic product purchases if Jones Act restrictions lessened. Despite this evidence, defenders argue that modifying the law favors China over U.S. interests. Data, however, challenges this view.
For example, Hawaii frequently imports goods on non-Jones Act ships, primarily owned by Japanese, Singaporean, and Greek firms. A mere 7 percent come from Chinese or Hong Kong vessels. Additionally, U.S. Virgin Islands, exempt from the Jones Act, mainly use U.S. carrier services like Crowley and Tropical Shipping for cargo.
Lawmakers can address security issues by allowing only allied-associated ships for domestic shipping. This change would enhance transportation options for U.S. businesses and consumers, strengthening partnerships with European and East Asian allies. With the current waiver expiring on November 15, Congress and President Trump should consider reforming the Jones Act to better serve American interests.
Jonathan Helton is a policy analyst at the Grassroot Institute of Hawaii.
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