A temporary waiver issued by Donald Trump allowing foreign-flagged vessels to transport fuel between U.S. ports has so far done little to increase domestic oil shipments, according to shipping data and analysts.
The 60-day suspension of the Jones Act restrictions took effect on March 17, with the aim of easing rising fuel prices triggered by the war involving Iran and disruptions in the Strait of Hormuz, a key global oil route.
However, trade data from Kpler shows shipments of crude and refined products between U.S. ports remained largely unchanged in March at about 1.37 million barrels per day compared with February levels.
Instead, U.S. refiners boosted exports, sending more fuel from the U.S. Gulf Coast to markets in Asia and Europe, where supply shortages linked to Middle East tensions have pushed prices higher.
Exports have become more attractive as European gasoil futures climbed above $200 per barrel, significantly higher than U.S. diesel benchmarks, creating strong arbitrage opportunities for exporters.
Analysts say refiners are prioritizing overseas shipments because profit margins are higher than selling fuel domestically, particularly to coastal U.S. markets lacking pipeline links.
Industry expert Tom Kloza noted that strong global demand and rising freight costs have reduced the incentive to redirect tankers to domestic routes.
At the same time, Asian buyers have been competing for Atlantic Basin tankers to import U.S. crude as a replacement for Middle Eastern supplies affected by the regional conflict.
The surge in long-distance shipments has tightened tanker availability along the Gulf Coast and driven freight rates sharply higher.
As a result, analysts say the shipping waiver has yet to deliver its intended effect of increasing domestic fuel flows or easing prices in U.S. coastal markets.