Jones Act Waiver Voyages Underreported, Analysis Finds
At least 15 voyages by foreign vessels under a Jones Act emergency waiver went unreported in federal records, a new analysis shows.
A new analysis suggests the number of foreign-vessel voyages missing from federal Jones Act waiver records is larger than previously known. Research fellow Colin Grabow of the Cato Institute identified at least 15 movements that never appeared in the U.S. Maritime Administration's public tally.
Grabow's findings expand on earlier reporting by Bloomberg Government. He examined vessel-tracking records and data from the National Ballast Information Clearinghouse. His work identified 14 tanker voyages with strong evidence of domestic cargo transport that were absent from MARAD's reports.
The Unreported Voyages
The analysis pointed to a pattern based on vessel draft changes and port calls. A tanker would arrive at a U.S. loading port near ballast draft. It would then appear considerably deeper upon reaching another U.S. port. Finally, it was recorded substantially lighter at its next destination. This pattern strongly indicates domestic cargo was loaded and discharged.
The 14 tankers had a combined cargo capacity of roughly 5.2 million barrels. Grabow cautioned this figure represents an upper limit, not the amount actually transported. The voyages included shipments to several U.S. locations.
| Destination | Number of Voyages |
|---|---|
| California | 7 |
| Puerto Rico | 3 |
| Hawaii | 2 |
| Marcus Hook, Pennsylvania | 1 |
| New Haven, Connecticut | 1 |
A possible 15th unreported voyage involved a Liberian-flagged LPG carrier. This vessel arrived in Honolulu on May 22 from Port Neches, Texas.
Questions Over Reporting and Enforcement
The findings deepen questions about MARAD's accounting of traffic under the emergency Jones Act waiver. Federal rules require vessel owners or operators using the waiver to report completed voyages to MARAD within 10 days. MARAD then publishes these reports, creating the primary public record.
MARAD told Bloomberg it lacks the legal authority to compel operators to submit the reports. Jones Act enforcement falls to U.S. Customs and Border Protection. Grabow said this means MARAD's published numbers should be treated as a minimum, not a complete accounting.
Fueling the Jones Act Debate
The missing voyages are feeding arguments on both sides of the long-running Jones Act debate. Grabow argues the additional shipments show the waiver opened domestic energy routes. He says these routes were lightly served or effectively nonexistent under normal Jones Act restrictions. Examples include Gulf Coast fuel shipments to Hawaii and sharply higher movements to California and Puerto Rico.
Jones Act supporters have focused on the lack of reporting. They question the extent to which foreign vessels entered domestic trades without appearing in public records. American Maritime Partnership President Jennifer Carpenter last week called the reporting failures "outrageous." She urged greater congressional oversight.
A gCaptain review of MARAD data from September 16 counted 255 completed movements. These were associated with the original March 17 waiver and its May extension. The newly identified voyages suggest that total did not capture all foreign-vessel activity.
The administration has since tightened the process. A second 90-day extension took effect on August 17. It now requires companies to first submit a Vessel Availability Request. This allows the government to determine if a qualified domestic vessel is available before authorizing foreign tonnage. The current waiver runs through November 15.
