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.