A measure included in the $858 billion annual defense spending bill cleared by the Senate on Thursday night could make it harder to ship fuel during national emergencies due to changes made to a century-old law known as the Jones Act.
The Jones Act is a 1920s-era law requiring that any cargo shipped between domestic ports be transported on a U.S.-built, U.S.-registered ship flying the U.S. flag and manned by a majority-U.S. crew.The proposed changes prohibit any vessel already on the water from obtaining waivers from the Jones Act.
The Maritime Administration estimates that it currently costs 2.7 times as much to ship goods on U.S.-flagged vessels.The changes also come at a time when the Northeast is grappling with aAs of last month, U.S. distillate levels were at their lowest since 1951, according to data from the U.S. Energy Information Administration, causing prices of the commodity to skyrocket and forcing some wholesalers to ration goods.
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