The headlines have been hard to miss: "Jones Act waiver reshapes U.S. oil trade as foreign tankers flood domestic routes." It sounds dramatic, and in some ways it is. But if you dig past the surface, the story is more nuanced than the headlines suggest.
Reports indicate that at least 60 waiver-approved shipments have been completed, with most heading to California, Florida, and Puerto Rico. What those headlines don't tell you is that this isn't 60 separate vessels making one-time runs. It's a smaller number of ships making repetitive voyages on the same domestic routes.
That distinction matters.
Why Repetition Changes the Legal Picture
In previous posts, I've covered how foreign seamen serving on foreign-flag vessels can potentially claim Jones Act protections when injured. The short version: U.S. courts have, in certain circumstances, extended Jones Act status to foreign nationals when the facts support it.
What we haven't seen yet is a case involving a foreign seaman injured on a vessel sailing under a Jones Act waiver, repeatedly, between two U.S. ports.
We have been unable to find any case law that directly addresses this scenario. But it's coming.
The Argument Plaintiff's Attorneys Will Make
Picture this in a courtroom: "Not only was my client injured on a vessel sailing directly between two U.S. ports -- but this vessel had been doing exactly that, over and over again, as part of an established pattern of commerce."
That's a more persuasive argument than a one-time voyage. Courts have historically looked at the totality of a vessel's operations when evaluating Jones Act claims. Repetition and pattern don't hurt that argument. They strengthen it.
The Coverage Question Nobody Is Asking
Here's the question that isn't getting enough attention: did the P&I programs on these vessels ever contemplate this exposure? Most foreign-flag vessel insurance programs are written with international trade in mind -- not repeated domestic coastwise voyages under a U.S. regulatory waiver. Whether Jones Act liability for injured seamen is actually covered under those programs is an open question -- and one worth raising with carriers now, before a claim forces the issue.
This Is a "When," Not an "If"
Given the volume of shipments being reported and the repetitive nature of these routes, it's not a matter of whether a Jones Act claim will emerge from this situation. It's a matter of when.
The frustrating reality is that resolution will take years -- this fact pattern has never been tested in court, and these cases move slowly. If and when the waivers end, no new exposure is created. But the voyages that have already occurred don't disappear from the record. Any seaman injured during this window still has a potential claim, and those cases will outlast the waivers by years.
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