US President Donald Trump could seek to extend the suspension of a maritime law that enables foreign-built and foreign-flagged ships to move oil between US ports, a measure his government says has limited fuel price rises during the Iran war, Axios reported on Tuesday.
The Jones Act, introduced in 1920, raises the cost of shipping oil and other goods between US ports because the qualified fleet is in fairly short supply, Axios said. Trump suspended the act for 60 days on March 18.
Any extension to suspend the law for longer could prove controversial given it isolates the market for US shippers and reduces competition.
Axios said that since the suspension, 40 tankers have been able to deliver oil between ports, including California, Texas, Florida and Alaska, increasing the available vessel numbers by 70% and lowering costs.
Foreign-flagged ships have carried 9 million barrels of oil between US ports since the waiver began with significant amounts of jet fuel headed to Alaska, Axios reported, citing government officials.
The article referenced an analysis by the conservative Hudson Institute which said the suspension could "harm" tens of thousands of American workers and jeopardize returns on billions invested in domestic shipping and shipbuilding industries.
The libertarian Cato Institute, however, said the law was outdated and burdensome, yet had survived for a century.
One adviser to Trump told Axios that as long as the Iran war continues and keeps fuel prices higher, the president would like to keep the waiver in place.
The article said White House spokesperson Taylor Rogers said no decision had been taken regarding an extension, but the government had noted how it had sped up deliveries and reduced costs.
has reached to the White House for comments.
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