The Department of Homeland Security issued a waiver of the Jones Act on March 17, 2026. The action allows foreign vessels to transport goods on the water between U.S. ports in response to national defense or emergency needs.

The Jones Act, enacted in 1920, requires that vessels transporting goods between U.S. ports be American built, owned, and crewed. Senator Wesley L. Jones provided the Merchant Marine Act, which became known as the Jones Act. In 1950, there were 434 Jones Act-eligible oceangoing vessels. In 2026, there were ninety-three such vessels. Currently, there are zero Jones Act-compliant liquefied natural gas (LNG) carriers.

During Operations Desert Shield and Desert Storm, the U.S. military chartered 281 Ready Reserve Force and commercial ships through the Military Sealift Command. Of these, eight were Jones Act-eligible, including one roll-on/roll-off ship, one heavy-lift vessel, and six tankers. Foreign-flagged vessels carried 27 percent of dry cargo during these operations, while U.S.-flagged commercial vessels carried 13 percent.

Vice Admiral Paul Butcher stated, "It would have taken us three more months to complete the sealift ourselves." The Ready Reserve Force consists of forty-five ships, with an average age exceeding 45 years. The United Nations Conference on Trade and Development reports the current average age of commercial vessels is just over 22 years, and the average scrappage age for vessels is 25-30 years, depending on vessel type.

A 2019 stress test revealed the Ready Reserve Force achieved a mission success rate of 41 percent against a target of 85 percent. The United States also faces a shortfall of over 1,800 mariners required to sustain major sealift operations. The United States produces 0.1 percent of the world's commercial ships, and China's shipbuilding capacity is 232 times greater than that of the U.S.

Why It Matters

The waiver addresses a reported need for greater shipping capacity during national emergencies. The decrease in Jones Act-eligible vessels since 1950 and the absence of U.S.-compliant LNG carriers indicate potential limitations in domestic shipping capabilities. The Strait of Hormuz acts as a choke point for approximately 20 percent of global oil supplies and 30 percent of global LNG supplies.