Maritime Unions Sound Alarm Over Jones Act Waiver Compliance, Foreign Crews and National Security

Nine maritime labor organizations say the Trump administration’s prolonged Jones Act waiver raises serious questions about compliance with federal law, including reporting requirements, immigration restrictions and the use of foreign vessels in domestic commerce.

Nine U.S. maritime labor organizations are raising fresh concerns over the Trump administration’s ongoing Jones Act waiver, warning that foreign-flagged vessels may be conducting domestic voyages without meeting federal reporting requirements and other legal safeguards intended to protect American mariners and national security.

In an October 27 letter to House Transportation and Infrastructure Committee Ranking Member Rick Larsen (D-Wash.) and Coast Guard and Maritime Transportation Subcommittee Ranking Member Salud Carbajal (D-Calif.), the unions questioned whether the waiver complies with restrictions enacted under the Fiscal Year 2023 National Defense Authorization Act (NDAA).

The letter comes as the administration’s Jones Act waiver, first issued March 17 amid disruptions caused by the war with Iran, approaches its November 15 expiration following two extensions. The waiver allows certain foreign-flagged vessels to transport cargo between U.S. ports, temporarily setting aside the Jones Act’s requirement that domestic waterborne cargo move aboard U.S.-built, U.S.-owned and U.S.-crewed vessels.

At issue is whether the waiver meets the NDAA’s requirement that such exemptions be granted only when “necessary in the interest of national defense to address an immediate adverse effect on military operations.”

The unions argue that the extent of foreign-vessel activity under the waiver is difficult to reconcile with that standard.

“The Administration, meanwhile, has provided Congress and the public with little of the required information regarding the need for the waivers and the availability of U.S. vessels as required by law,” the organizations wrote.

They also allege that some waiver recipients have submitted inadequate documentation, missed mandatory reporting deadlines or failed to report their voyages altogether.

Under federal requirements, vessel operators must submit post-voyage reports to the Maritime Administration within 10 days, including details about the vessel, cargo, ports visited and why the voyage served national defense interests.

According to the unions, many operators have provided generic explanations or simply responded “not applicable” when asked to explain the national defense justification for their movements.

Foreign Crews Raise Additional Legal Questions

The labor organizations also raised concerns about the use of foreign mariners aboard vessels operating in U.S. domestic commerce, including potential violations of immigration, employment and tax laws.

The letter specifically questions whether foreign crewmembers holding D-1 visas are legally permitted to work aboard vessels transporting cargo between U.S. ports.

“Immigration law, for example, prohibits foreign crewmembers holding a D-1 visa from engaging in domestic commerce, yet many waiver operations appear to employ precisely such D-1 visa mariners,” the unions wrote.

The organizations also pointed to recent Internal Revenue Service guidance raising questions about U.S. tax obligations for foreign vessel operators and mariners participating in domestic transportation.

They argue that allowing foreign crews to perform domestic shipping work without meeting comparable legal, licensing and security requirements puts American mariners at a competitive disadvantage.

The letter further raises national security concerns, citing reported use of the waiver by Chinese state-owned shipping company COSCO and a separate instance involving Russian mariners.

“These concerns are especially troubling because the Jones Act waiver authority was intended to strengthen national security,” the organizations wrote. “Instead, the program appears to have enabled hundreds of domestic voyages by foreign vessels crewed by foreign mariners operating under exemptions from laws that Congress never intended to set aside.”

The unions cite media reports alleging espionage activity involving COSCO vessels near U.S. coastlines, but the letter does not establish that any vessel operating under the waiver engaged in espionage.

Oversight Pressure Builds

The latest letter adds to mounting congressional scrutiny of the waiver, including questions raised by Carbajal earlier this month over foreign-vessel reporting and compliance with federal law.

As gCaptain reported on October 19, Carbajal asked Homeland Security Secretary Markwayne Mullin to explain how the department is enforcing immigration, tax and maritime requirements aboard foreign vessels operating under the waiver.

That inquiry followed gCaptain’s September reporting identifying evidence of at least 14 previously unreported domestic tanker voyages and a possible 15th, expanding on a Bloomberg Government investigation that found foreign vessels had transported more than $40 million in petroleum products without appearing in MARAD’s public waiver records.

A gCaptain review of MARAD data published September 16 counted 255 completed movements under the original waiver and its first extension. The additional voyages suggested the official tally was incomplete.

MARAD previously told Bloomberg Government that it lacks legal authority to compel operators to submit required reports. Jones Act enforcement falls to U.S. Customs and Border Protection.

The administration has since tightened its waiver procedures. Under rules introduced with the August 17 extension, operators must submit vessel availability requests before conducting a voyage, allowing MARAD to assess whether a qualified U.S.-flag vessel is available. The Department of War then determines whether the movement qualifies under the waiver.

Whether those changes have addressed the broader compliance concerns remains an open question.

Carbajal has requested a response from DHS by October 31.

The October 27 letter was signed by leaders of nine maritime labor organizations, including the Seafarers International Union, American Maritime Officers, Marine Engineers’ Beneficial Association, Masters, Mates and Pilots, Sailors’ Union of the Pacific, American Radio Association, Marine Firemen’s Union, AFL-CIO Maritime Trades Department and AFL-CIO Transportation Trades Department.

“American mariners stand ready to support the nation’s energy, transportation, and national security needs,” the unions wrote. “We ask only for a faithful enforcement of the laws enacted by Congress.”