US extended exemption

Washington (dpa) — The US government has extended a shipping exemption by 90 days to ensure the supply of key resources such as petrol, diesel and soy oil.

The White House said that the move was intended to assist key industries and the military. A senior government official added that the suspension of the Jones Act would come into force on August 17.

In mid-March, the government had initially suspended the law – which restricts shipping between US ports – for 60 days.

Under the law, ships carrying goods from the US were only permitted to call at another US port if they were flying the US flag. Until now, this has not been possible for foreign vessels, or only to a limited extent.

US extended exemption

According to US government sources, the current extension applies exclusively to vessels transporting goods such as petrol, diesel, crude oil, heating oil, liquefied natural gas, soy oil and fertilizers. In addition, the US Department of Defence will decide which vessels are covered by the exemption.

The law was passed in 1920 to protect US shipping companies and maritime trading firms. Critics argue, however, that it makes the transport of goods more expensive and thus drives up consumer prices, as fewer ships are eligible to transport oil from one US port to another.

US President Donald Trump had already temporarily suspended the Act in 2017 to facilitate aid to the US territory of Puerto Rico.