The Jones Act was suspended on March 17, 2026, when the Department of Homeland Security issued a 60-day waiver letting foreign-flagged vessels carry oil, natural gas, coal, and fertilizer between U.S. ports. The waiver expires May 17, 2026 at 11:59 p.m. Eastern Daylight Time.1U.S. Customs and Border Protection. CSMS 68370692 – Updated Guidance 2: Implementation of Jones Act Waiver Issued to the Department of War, Dated March 17, 2026 It was requested by the Secretary of Defense in response to the U.S.-Israel military campaign against Iran, which began February 28, 2026 and effectively shut down tanker traffic through the Strait of Hormuz, a chokepoint that normally handles roughly 20 percent of the world’s oil.
Suspensions of this kind are rare. They only happen through one of two national-defense pathways in federal law, and the current one is the broadest in recent memory.
What the Jones Act Normally Requires
The Merchant Marine Act of 1920 restricts shipping goods by water between two U.S. points to vessels that are American-built, American-owned, and carry a coastwise endorsement from the U.S. Coast Guard.2Office of the Law Revision Counsel. 46 USC 55102 – Transportation of Merchandise There is also a crew rule: no more than 25 percent of unlicensed seamen on a documented vessel may be permanent residents rather than U.S. citizens.3Office of the Law Revision Counsel. 46 USC 8103 – Citizenship and Naval Reserve Requirements The rules are meant to preserve a domestic shipbuilding base and a pool of merchant mariners for wartime. In practice, they also shrink the number of vessels available for coastwise routes, which is why a supply shock can create pressure for a waiver.
The Two Legal Pathways for a Suspension
Federal law offers two routes to waive the Jones Act. Both are rooted in national defense, but they differ in who triggers them, how quickly they move, and how long they can last.
Secretary of Defense Request
When the Secretary of Defense determines a waiver is needed to address an immediate adverse effect on military operations, DHS is required to grant it. The statute uses “shall,” leaving no discretion. Within 24 hours, the Secretary must send Congress a written explanation, including a confirmation that not enough qualified U.S.-flagged vessels are available.4Office of the Law Revision Counsel. 46 USC 501 – Waiver of Navigation and Vessel-Inspection Laws Critically, this pathway sets no maximum duration. That is why the March 2026 waiver runs a full 60 days.
Presidential Determination
The second route begins with the President determining that a waiver serves national defense interests. The Maritime Administration (MARAD) then evaluates domestic capacity. If MARAD finds the U.S. fleet cannot meet the need, DHS may grant the waiver on a vessel-by-vessel basis, no earlier than 48 hours after the request is published publicly.4Office of the Law Revision Counsel. 46 USC 501 – Waiver of Navigation and Vessel-Inspection Laws
Duration is much tighter here. Each waiver lasts a maximum of 10 days, extensions come in additional 10-day blocks if MARAD reconfirms the shortfall, and the total for any set of events cannot exceed 45 days. Before granting a waiver, MARAD must also identify actions that might let U.S.-flagged vessels meet the need without a waiver at all.5Maritime Administration. Domestic Shipping
What the March 2026 Waiver Covers
The current suspension was issued under the mandatory Secretary of Defense pathway. It covers four commodity categories: oil, natural gas, coal, and fertilizer. Foreign-flagged vessels may move these goods between U.S. ports through the May 17, 2026 expiration.1U.S. Customs and Border Protection. CSMS 68370692 – Updated Guidance 2: Implementation of Jones Act Waiver Issued to the Department of War, Dated March 17, 2026
Alongside the waiver, the Department of Energy announced a release of 172 million barrels from the Strategic Petroleum Reserve, expected to take about 120 days to deliver at planned discharge rates.6U.S. Department of Energy. United States to Release 172 Million Barrels of Oil From the Strategic Petroleum Reserve
If you are moving a covered commodity on a foreign-flagged vessel under this waiver, you must notify CBP by email at jonesact@cbp.dhs.gov. The notification has to include the vessel name and IMO number, the commodity and its tariff code, the carrier, and the ports and dates of departure and arrival.1U.S. Customs and Border Protection. CSMS 68370692 – Updated Guidance 2: Implementation of Jones Act Waiver Issued to the Department of War, Dated March 17, 2026 The waiver does not cover other commodities, and it does not touch the citizenship rule for vessels operating outside its scope.
How This Suspension Compares to Past Ones
The government has suspended the Jones Act roughly a dozen times since 2005, almost always for hurricanes or energy supply crises. Hurricane Katrina in 2005 prompted an 18-day waiver to move petroleum along the Gulf Coast after pipelines lost power. Hurricane Rita brought a similar fuel-transport waiver soon after. In 2011, a waiver let foreign tankers move oil from the Strategic Petroleum Reserve during the Libya crisis. Superstorm Sandy in 2012 produced a roughly three-week waiver for fuel deliveries to the Northeast.
The 2017 hurricane season generated three waivers in quick succession, one each for Harvey, Irma, and Maria. The Puerto Rico waiver after Maria covered all types of shipping for 10 days.7U.S. Department of Homeland Security. Waiver of Compliance with Navigation Laws The March 2026 waiver is unusual on two counts: its 60-day length, and its basis in active military conflict rather than a natural disaster.
Penalties If You Ship Outside the Waiver’s Terms
Moving merchandise between U.S. ports on a non-qualifying vessel, without a valid waiver, exposes the cargo to seizure and forfeiture. As an alternative to forfeiture, the government can recover a civil penalty equal to the value of the merchandise or the actual cost of transportation, whichever is greater.2Office of the Law Revision Counsel. 46 USC 55102 – Transportation of Merchandise For a tanker carrying crude oil, that number climbs quickly.
False or misleading information in a waiver request carries separate penalties under customs law. A fraudulent violation can reach the full domestic value of the merchandise. For gross negligence, the cap is the lesser of the domestic value or four times the duties owed. Even a merely negligent filing can trigger a penalty of up to two times the applicable duties.8Office of the Law Revision Counsel. 19 USC 1592 – Penalties for Fraud, Gross Negligence, and Negligence These penalties apply to anyone who introduces merchandise into U.S. commerce through materially false documents or statements.