How does the Jones Act affects intra-US crude and product shipments?

摘要

The US federal statute, which was signed into law in 1920, requires all waterborne shipments of goods between US ports to be performed using US-flagged vessels, which are more expensive compared to foreign-flagged ships. As a result, the legislation has profound effect on crude flows among US Petroleum Administration for Defense Districts (PADDs). According to the US Army Corps of Engineers, US inland water shipments of crude oil and refined products averaged 2.8-3.0MM b/d from 2016-2019, which is around 11-14% of total barge, rail, tanker, and pipeline movements between PADDs, according to the EIA.