Jones Act waiver a ‘unique test case’ for propane industry

In trying to curb rising fuel and energy costs amid the U.S.-Iran conflict, President Donald Trump issued a limited 60-day waiver of the Merchant Marine Act of 1920, also known as the Jones Act, on March 17, according to multiple media reports.

The law mandates that only U.S.-built and -flagged vessels can ship cargo between U.S. ports. Its critics cite the limited number of oceangoing Jones Act vessels in operation – one lawmaker says fewer than 100 – compared to the number of international-flagged vessels handling much of the worldwide shipping.

Because the Jones Act has prevented the movement of propane between U.S. ports (no vessels capable of transporting propane meet the law’s requirements), the industry has long viewed it as a hindrance to the efficient and strategic distribution of propane, especially during the winter heating season. The National Propane Gas Association (NPGA) and its members have discussed the Jones Act with lawmakers at past Propane Days events in Washington, D.C.

Stephen Kaminski, president and CEO of NPGA, praised the temporary move by the White House.

“NPGA has long urged Congress and administrations, past and present, to recognize the benefits of easing the shipping restrictions imposed by the Jones Act,” he writes on LinkedIn. “The current 60-day waiver provides a unique test case for the propane industry and may demonstrate the potential value of a seasonal Jones Act waiver during prolonged supply disruptions, peak harvest and heating season.”

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