Jones Act Waiver 2026: Implications for the Marine Insurance Sector

Why the President Authorized the Waiver


President Trump authorized the temporary suspension of the Jones Act in response to rapidly rising gasoline and fuel prices driven by the Iran conflict. The war severely disrupted global oil supply chains, including the effective shutdown of the Strait of Hormuz, a route for nearly 15 million barrels of oil per day. Combined with Brent crude nearing $110 per barrel, these pressures contributed to rapid increases in domestic fuel costs. By allowing foreign tankers to move oil, gas, and related commodities between U.S. ports, the administration sought to expand transport capacity, reduce shipping costs, and mitigate short‑term supply constraints. The White House emphasized that the measure is intended to stabilize energy flows and slow the rise in gasoline prices.

Overview

The 2026 temporary suspension of the Jones Act cabotage provisions introduces operational and risk‑transfer dynamics that the marine insurance sector must understand. The waiver authorizes foreign‑flagged and foreign‑crewed vessels to carry specified cargoes between U.S. ports for 60 days.

Scope of the Waiver

U.S. Customs and Border Protection (CBP) has publicly issued implementation instructions confirming the waiver’s effective window, the 659 covered products, and the absence of geographic limitations on U.S. to U.S. voyages. These details—not the unreleased waiver instrument—govern vessel eligibility during the 60‑day suspension. Marine underwriters should note that foreign‑flag vessels operating under this waiver may enter coastwise service temporarily without gaining any change in legal status. 

US Crew Injury Liability Remains Unchanged

The waiver affects only the coastwise carriage rules under 46 U.S.C. §55102 and does not modify seamen’s rights under 46 U.S.C. §30104. Foreign crew operating on vessels in coastwise service under the waiver do not acquire any special injury remedies, nor are any existing remedies diminished. Claims related to negligence, maintenance and cure, and unseaworthiness continue to be analyzed under traditional maritime‑law frameworks, however whilst there is little case law it would seem that this change would allow foreign crew an easier way to establish a US connection to Jones Act remedies regardless of the flag of the vessel or their nationality.

Why the Waiver Document Is Not Public

CBP has not released the actual waiver document and its underlying justification. This is standard when the waiver is activated in response to an interagency request tied to national defense. Only private waiver requests must be published under CBP’s statutory obligations. In contrast, defense‑related waivers initiated by the Department of Defense and granted by DHS are not posted; therefore, CBP has released only operational guidance—Cargo Systems Messaging Service (CSMS) notices and product lists—rather than the waiver itself.

Implications for Marine Insurers

• Underwriting should focus on vessel condition, temporary routing patterns, and expanded coastwise activity by foreign‑flag tonnage.
• Claims teams should expect some Foreign Crew on foreign-flag vessels to attempt to bring Jones Act claims.   Without precedents, it is impossible to predict how the courts will react, but at a minimum, there will be increased focus and defense costs on these claims.
• Compliance audits should rely on CBP’s published CSMS guidance rather than searching for a waiver document that is not legally required to be public.
• Agents and Brokers should advise assureds that the waiver facilitates market access but may also expand the crew injuries part of the act.

Conclusion

For the marine insurance sector, the 2026 Jones Act waiver is best understood as a logistics‑focused, defense‑driven measure that expands permissible coastwise carriage whilst opening the door to potential expansion of crew claims.

Ports & Terminals: Where Marine Risk Is Often Underestimated

Ports and terminals are some of the most complex environments in marine insurance. They often sit at the intersection of land-based operations and marine activity, which can make exposures harder to spot and easier to underestimate.



On paper, two terminal operations may look similar. In reality, small differences in how work is performed, where employees operate, and how vessels are involved can significantly change the risk profile.



For agents working with ports, terminals, and related contractors, understanding these nuances is critical to structuring coverage correctly.


Mixed Operations That Don’t Fit Neatly in One Box

Ports and terminals often support multiple activities at once, which can blur exposure lines.

• Employees moving between land-based and waterfront tasks
• Operations shifting with vessel schedules
• Facilities serving both marine and non-marine purposes

Contractors Working Alongside Terminal Employees

Third-party labor can quickly change the exposure picture.

• Contractors performing marine-adjacent work
• Overlapping responsibilities
• Unclear supervision or scope

Vessel Interaction That Feels Incidental

Limited vessel interaction can still matter.

• Employees boarding vessels
• Floating platforms or barges
• Dockside maintenance

Operational Changes That Happen Gradually

Growth or expansion can introduce new risks.

• Expanded services
• New vessel traffic
• Changes since last renewal

Assumptions Based on Familiarity

Long-standing accounts can quietly evolve.

• Historical placement assumptions
• Lack of recent detailed review

How to Approach These Accounts More Confidently

Ports and terminals rarely present risk in isolation. Exposure is typically driven by multiple factors coming together. The goal is knowing when to pause and take a closer look.

Download our Ports & Terminals Risk Checklist to walk through the most common exposures and identify when a deeper underwriting conversation is needed. 

Questions?

LIG’s marine underwriters are here to help evaluate complex operations and structure coverage with confidence.


Contact us: 

(727) 578-2800 | Ask@LIGMarine.com

War Risk in the Gulf: What Marine Insurance Managers Need to Know Right Now

The escalating conflict in the Middle East has created one of the most rapidly shifting marine insurance environments in recent memory. Here is what is happening, what it means for coverage, and where things stand today.

What Changed

Following U.S. and Israeli airstrikes on Iran in late February, the Islamic Revolutionary Guard Corps (IRGC) declared the Strait of Hormuz "closed" and threatened to attack any vessel attempting to transit. The insurance market responded immediately. Major war risk providers canceled existing war risk cover for vessels in the region.

The London Market Is Still Open

Despite the cancellations, coverage has not disappeared. Marine insurers in London continued to offer cover in the Middle East even as war risk premiums rose, with capacity remaining available through Lloyd's for clients actively seeking it.

The cost, however, has changed significantly. War risk premiums climbed as high as 1% of a vessel's value within 48 hours, up from roughly 0.2% the week prior. On a $100M vessel, that translates to a single-voyage premium jumping from approximately $200,000 to $1 million. The Joint War Committee also expanded its high-risk zone to include waters around Bahrain, Djibouti, Kuwait, Oman, and Qatar, meaning the affected area now extends well beyond the strait itself.

What's Driving the Pricing

There is no single rate to quote. Increases depend on vessel type, cargo, and routing, requiring individual risk assessment. War risk ratings are now shifting daily in response to geopolitical developments, which makes real-time underwriting guidance essential.

LIG Marine Underwriting

This is a complex and fast-moving situation, but it is a navigable one. As a Lloyd's broker with direct access to the London market, our team is actively monitoring developments in the Gulf and working with agents and brokers to identify coverage solutions for clients with exposure in the region.

Contact us: (727) 578-2800 | Ask@LIGMarine.com