Jones Act waiver: It could have been worse

The White House on May 12 approved a Jones Act waiver to ease the shipment of gasoline and jet fuel in the Gulf of Mexico and from the Gulf up the Atlantic Coast to New England in response to the May 7 ransomware hack attack that forced the shutdown of Colonial Pipeline's principal fuel distribution link.

The waiver - approved by the Department of Homeland Security in response to a national security emergency - is "temporary and targeted" and applicable only to one as yet unidentified company, a DHS statement said.

"This waiver will enable the transport of additional gas and jet fuel between the Gulf Coast and East Coast ports to ease supply constraints," said White House Press Secretary Jen Psaki.

The Department of Homeland Security statement reaffirmed the administration's support of the Jones Act as "vital to maintaining the strength of the American shipbuilding and maritime industries by requiring all maritime cargo transport between U.S. ports to occur on U.S.-flagged vessels."

American Maritime Officers and all other seagoing unions and maritime industry interests were kept current on the developing crisis in conference calls with the Maritime Administration in the Department of Transportation. In these calls, the participants were told in detail about efforts to determine how many Jones Act tankers and tug-barges were available to deliver the fuels.

Similar assessments were conducted in the trucking and railroad industries, which get the gasoline and jet fuels to landlocked points.

Meanwhile, Colonial Pipeline restarted operations May 12, leading to what the White House called "an end in sight for the supply disruptions." Press Secretary Psaki said the Departments of Transportation, Energy and Homeland Security and "other agencies" will "stay in close contact with the company and will continue to offer any assistance needed."

In sum, it could have been worse for the Jones Act and the family friendly jobs it sustains for AMO on the East, Gulf and West Coasts, the Great Lakes, in ports and along inland waterways - and for workers in the U.S. shipbuilding, service and supply industries nationwide.

The unacceptable alternative would be a blanket Jones Act waiver of indeterminate scope and duration.

For additional perspective, consider that, as Hurricane Maria approached and pummeled Puerto Rico in 2017, the Jones Act was waived for 10 days, and no foreign-flagged shipping companies took advantage of it. In 2011-2012, 51 separate Jones Act waivers were issued to allow foreign-flagged tankers to move U.S. crude oil from the Strategic Petroleum Reserve to domestic refineries.

The Jones Act survived each time, largely because of its proven value to the U.S. economy and to U.S. national security - and because of its traditionally strong bipartisan support base in Congress.

Nevertheless, we have to reckon with precedent and its inspirational impact. Powerful business and ideological "think tanks" - the conservative Cato Institute and the liberal Center for American Progress among them - are no doubt encouraged by these Colonial Pipeline developments, and there will be calls for additional Jones Act waivers in specific markets for specific reasons.

American Maritime Officers will report further on the Colonial Pipeline issue as we follow the waiver and its effects, and we will continue to work independently and with other unions and the American Maritime Partnership in Washington to safeguard the Jones Act and the benefits it provides at no cost to U.S. taxpayers.

Paul Doell
May 13, 2021