Bush suspends Jones Act
President George W. Bush has temporarily suspended the Jones Act, which will allow foreign tankers to transport gasoline between
US ports.
Mr. Bush announced this suspension Thursday afternoon in a televised speech given at the Oval Office so that foreign ships can also help distribute oil and gasoline to where it is needed.
The waiver appears to be an attempt to soothe
US consumer outrage that current gas prices have increased by 75 cents in the last two days. Prices have surpassed $3.30 a gallon in many areas and exceeded $6 a gallon in Atlanta,
Georgia.
The unconfirmed word in chartering circles, however, is that the waiver will only last until September 6. Many charterers and brokers speculate that will not be enough time for the suspension to have a serious impact, considering the amount of bureaucracy involved as well the Labor Day holiday on Monday (September 5).
Another challenge we face is that the downed pipelines are causing the need to transport gasoline to needed markets by ship, Mr. Bush said.
Pipeline shutdowns prompted lobbying to suspend the Jones Act, but plans for partial pipeline startups have been in place since Wednesday. Pipeline operational capacity is expected to be up to 50 percent by Monday.
Time will tell if the suspension will actually have any impact on the
US gasoline supply, or if it is only an empty gesture designed to earn public support.
The Jones Act (aka Merchant Marine Act) is a United States Federal statute that requires
US-flagged vessels to be built in the United States, owned by
US citizens, and documented under the laws of the United States. Documented means "registered, enrolled, or licensed under the laws of the United States." (source: WikiPedia.org)