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← Economic Fallout

Jones Act waiver sparks record petroleum shipments from Gulf Coast to U.S. coasts

Confirmed1 source · Aug 17, 2026

A Department of Homeland Security waiver of maritime shipping restrictions has enabled a dramatic surge in crude oil and refined product movements from the Gulf Coast to both the West and East coasts.

What happened

The U.S. Department of Homeland Security issued a limited waiver of the Jones Act on March 17 and has renewed it since, permitting a broader group of ships to carry petroleum between U.S. ports. Waterborne shipments of crude oil and petroleum products from the U.S. Gulf Coast to the West Coast more than quadrupled year-on-year in April and May, reaching 190,000 barrels per day in April compared to less than 30,000 b/d in January and February. Prior to the waiver, renewable diesel made up 96% of Gulf-to-West Coast shipments; the waiver enabled gasoline blending components, finished motor gasoline, jet fuel, and crude oil to move along that route. Shipments from the Gulf Coast to the East Coast also increased to a record 1.2 million b/d in April, 11% higher than the pre-waiver record, with gasoline blending components and distillate fuel reaching record highs of 620,000 b/d and 220,000 b/d respectively. Total waterborne movements declined 12% in May, but crude oil shipments from the Gulf Coast to the East Coast increased to a record 180,000 b/d.

Context

The Jones Act normally requires goods moved in U.S. coastal waters between U.S. ports to be carried on U.S. flagged and owned ships constructed in the United States and crewed by U.S. citizens. By temporarily suspending this requirement for a broader class of vessels, the waiver has opened capacity for petroleum product distribution across U.S. coasts. The East Coast route is particularly significant because Florida relies on waterborne receipts from Gulf Coast refining centers for much of its transportation fuel supply, and the April shipment levels represented a new record for inter-PADD waterborne transfers in that corridor.