Venezuela Spot Oil Sales Snarled by Surging Freight Costs
Sales of Venezuelan oil for loading in October stalled after a surge in shipping costs muddled negotiations between the country’s state oil company and buyers of its oil.
Chevron-chartered oil tanker Ionic Anax is seen near the Bajo Grande port in Venezuela's lake Maracaibo after loading for export, in San Francisco, Zulia State, Venezuela December 13, 2025. REUTERS/Isaac Urrutia
America’s largest maritime labor unions are urging the Trump administration and Congress to require that any Venezuelan crude imported into the United States be carried exclusively on U.S.-flag vessels crewed by American mariners, arguing the move would strengthen national security while jump-starting the long-declining domestic shipping fleet.
In a joint letter issued Friday to Secretary of State Marco Rubio and Defense Secretary Pete Hegseth, leaders of the Marine Engineers’ Beneficial Association (MEBA), American Maritime Officers (AMO), Masters, Mates & Pilots (MM&P), and the Seafarers International Union (SIU) said U.S. energy policy should be aligned with “Ship American” principles.
“A cornerstone of an effective national maritime policy is gaining access to private, commercial cargoes that create steady demand for U.S.-flag vessels, American mariners, and the shipbuilding industrial base,” the unions wrote.
They argue that sanctions on Venezuelan oil, while intended to pressure the Maduro regime, have had an unintended side effect: pushing crude exports into foreign-controlled trading networks and so-called “shadow fleet” tankers that operate outside U.S. labor, safety, and transparency standards.
That shift, the unions say, has effectively shut American operators out of energy cargoes that could otherwise support U.S. ships and crews, even as Venezuela sits on an estimated 303 billion barrels of proven crude reserves and U.S. Gulf Coast refineries remain well-suited to process its heavy grades.
Mandating U.S.-flag transport for Venezuelan oil entering the country, the groups argue, would provide reliable cargo for American carriers, improve sanctions compliance, reduce reliance on opaque foreign shipping networks, and give refiners more stable supply options at a time of persistent energy-price volatility.
The proposal dovetails with President Trump’s April 2025 executive order, Restoring America’s Maritime Dominance, which calls for rebuilding U.S. commercial shipbuilding capacity, expanding the U.S.-flag fleet, and strengthening the maritime workforce. A broader Maritime Action Plan is expected later this year.
“American mariners are ready to step up and assist the Administration in its efforts to counteract malign foreign influences that seek to transport sanctioned goods through opaque and unsafe channels,” the unions wrote. “Requiring U.S.-flag vessels, manned by American mariners, to transport Venezuelan crude oil legally and safely would uphold long-standing maritime principles and ensure that global energy supply chains function in accordance with U.S. laws and standards.”
The letter was signed by Willie Barrere, president of AMO; Dave Heindel, president of SIU; Don Josberger, president of MM&P; and Adam Vokac, president of MEBA.
Whether the administration embraces the proposal remains unclear, but the push reflects a broader effort by labor groups to tie energy security directly to rebuilding the U.S. maritime industrial base.
Sign up for gCaptain’s newsletter and never miss an update
Subscribe to gCaptain Daily and stay informed with the latest global maritime and offshore news
Essential news coupled with the finest maritime content sourced from across the globe.
Sign Up