Global GDP could be boosted…
Members of the Organization of…
The US Waives The Jones Act Allowing Foreign Ships to Help Supply Fuel to the North East
The Jones Act was created in 1920 to help support the maritime industry in the US by ensuring that any goods moved between US ports must be done so in domestically built ships, crewed by US citizens.
In a rare move, the Department of Homeland Security has decided to issue a waiver allowing foreign vessels to transport petrochemicals to ports in the north east, in an attempt to increase supply of the fuels in the region most affected by the passing of hurricane Sandy.
Related Article: Why US Energy and Economic Prospects Improve if Obama Loses
Foreign ships will supply Northeastern ports with products such as diesel and gasoline from refineries in the Gulf of Mexico; although the true effectiveness of this strategy is unknown due to the fact that most ports in the area are still without power.
The American Maritime Partnership (AMP) has said that it is not aware that US vessels are not able to make the deliveries themselves, however it “will not oppose waivers that are necessary to facilitate delivery of petroleum products into the regions affected by Hurricane Sandy.”
The waivers even allow ship owners to divert cargoes that are bound for Europe or Latin America to supply the depleted market in the North East. What effects this will have on fuel supply and prices in these continents is unknown.
By. Joao Peixe of Oilprice.com
Joao is a writer for Oilprice.com