The Jones Act: What It Requires and How It Affects Your Freight
Any cargo moving by water between two US points has to ride a US-built, US-owned, US-crewed vessel. Here is what the law actually says and what it means if you ship or truck freight to Hawaii, Alaska or Puerto Rico.
What the law says
"Jones Act" is the common name for Section 27 of the Merchant Marine Act of 1920. Its cargo provision is now codified at 46 U.S.C. 55102. In short: a vessel may not carry merchandise by water, or by land and water, between points in the United States covered by the coastwise laws, either directly or via a foreign port, unless the vessel is wholly owned by US citizens and has a coastwise endorsement from the Coast Guard. "Merchandise" includes goods owned by federal, state and local governments and even material with no value.
The Maritime Administration summarizes the requirement as vessels that are US-built, US-owned and coastwise endorsed. Crewing rules come from separate statutes that apply to US-documented vessels.
| Requirement | Where it comes from | What it means |
|---|---|---|
| Built in the US | 46 U.S.C. 12112 | A coastwise endorsement requires US construction, with narrow exceptions (vessels forfeited for breaking US law, war prizes, certain wrecked vessels) |
| Owned by US citizens | 46 U.S.C. 55102 and 12103 | Owners must meet the statutory citizenship tests for coastwise trade |
| US crew | 46 U.S.C. 8103 | The master, chief engineer and watch officers must be US citizens or noncitizen nationals; no more than 25 percent of unlicensed seamen may be lawful permanent residents |
| Coastwise endorsement | 46 U.S.C. 12112 | Coast Guard documentation showing the vessel qualifies for coastwise trade |
A separate law, the Passenger Vessel Services Act, covers passengers. This page deals only with cargo.
Where it applies
The coastwise laws apply to the United States, including the island territories and possessions (46 U.S.C. 55101). Three are excluded:
- American Samoa
- The Northern Mariana Islands, except as provided in their covenant with the United States
- The US Virgin Islands, until the President proclaims otherwise
So a move from the mainland to Puerto Rico, Hawaii, Alaska or Guam is a domestic move under the Jones Act. A move from the mainland to St. Thomas is not.
Practical effects for shippers and truckers
Mainland to Hawaii, Alaska and Puerto Rico
Freight from the mainland to these places must move on coastwise-qualified vessels: container ships, roll-on/roll-off ships, and tug-and-barge services operated by US carriers. That limits the number of carriers and sailings you can choose from compared with an international lane. Book space early and treat the published sailing schedule as the fixed point in your plan.
Many shipments to these markets move as truck trailers or containers on chassis that roll on and off the vessel or barge. The trucker's leg on each side is ordinary drayage, but the water leg is a Jones Act move, and the trailer or box usually has to be delivered to the terminal by the carrier's cutoff.
Imports from foreign countries are not affected
The law covers moves between two US points. Goods made in Asia or Europe can sail on a foreign-flag ship straight to Honolulu, Anchorage or San Juan. What a foreign ship cannot do is load cargo at a US port and discharge it at another US port.
No workaround through a foreign port
Because 55102 covers moves "via a foreign port," cargo shipped from, for example, Florida to a foreign port and then on to Puerto Rico is still a coastwise move. The "land and water" language means a through movement that is partly by water can also be covered.
Empty equipment
Under 46 U.S.C. 55107, empty containers, lift vans and shipping tanks, and equipment used with them, can be repositioned between US ports on a vessel without coastwise qualification if they are owned or leased by the vessel owner or operator and moved for handling its cargo in foreign trade. For a foreign-flag vessel, this exemption applies only if its home country offers reciprocal privileges to US vessels. It does not cover loaded boxes or shipper-owned equipment.
Questions to ask before booking a noncontiguous lane
- Is the vessel or barge coastwise-qualified, and is the carrier issuing the bill of lading for the water leg?
- What is the terminal cutoff for trailers or containers, and how many sailings a week serve the lane?
- Does the rate include the destination drayage, or does the consignee arrange it?
- How much free time applies at the destination terminal, and who is billed after that? See demurrage and detention.
Enforcement and penalties
US Customs and Border Protection enforces the Jones Act. Under 46 U.S.C. 55102(c), merchandise moved in violation is liable to seizure and forfeiture. Instead of seizure, the government may recover from any person who transports the merchandise, or causes it to be transported, the value of the merchandise or the actual cost of the transportation, whichever is greater. A shipper that books a domestic move on a non-qualified vessel can therefore be exposed even though it did not operate the ship.
How waivers work
| Defense request, 46 U.S.C. 501(a) | Agency waiver, 46 U.S.C. 501(b) | |
|---|---|---|
| Who starts it | The Secretary of Defense (Department of War) requests it | A request to DHS; requires a presidential determination |
| Test | Necessary for national defense to address an immediate adverse effect on military operations | Necessary in the interest of national defense, and MARAD determines that qualified US-flag capacity is not available |
| Scope | As determined necessary | Vessel-specific |
| Time limits | Not limited by the statute | Up to 10 days, one extension of up to 10 days, and no more than 45 days total for one set of events |
| Reporting | Owner or operator reports the voyage to MARAD within 10 days after it ends | Same; MARAD publishes each report within 48 hours of receiving it |
Waivers are temporary and tied to national defense. They are not a route for an individual shipper to get a cheaper rate on a routine shipment.
The 2026 waiver
On March 17, 2026, DHS issued a Jones Act waiver at the request of the Department of War covering a list of products. CBP announced a second extension on August 13, 2026: it runs for 90 days from August 17, 2026, and covered products must be loaded by 11:59 p.m. Eastern on November 15, 2026. The covered list has been narrowed over time and now centers on petroleum products, gas, and fertilizers. Each voyage requires a vessel availability request to the Department of War and MARAD before it starts, notice to CBP, and a post-voyage report. Check CBP's current guidance before relying on it, because the list and dates have changed with each extension.
Common mistakes
- Assuming Puerto Rico is "international." For Jones Act purposes it is domestic. For the US Virgin Islands it is not.
- Quoting a foreign-flag rate for a domestic lane. A foreign line may be able to bring cargo from Asia to Hawaii, but not from Long Beach to Hawaii.
- Routing through a foreign port to save money. The statute expressly covers moves via a foreign port.
- Treating a waiver as open-ended. Waivers cover listed products, specific periods and approved voyages.
- Missing the vessel cutoff. With fewer qualified sailings, a missed cutoff can cost far more time than on an international lane.
Questions
Does the Jones Act apply to trucks?
No. It governs transportation of merchandise by water, or by land and water, between points in the United States. A truck moving freight on the highway is not covered. But if a truck trailer or container rides a ship or barge between two US points, that water leg must be on a coastwise-qualified vessel.
Does the Jones Act apply to the US Virgin Islands?
No. Under 46 U.S.C. 55101(b), the coastwise laws do not apply to American Samoa, the Northern Mariana Islands (except as provided in their covenant with the United States) or the US Virgin Islands. They do apply to Puerto Rico, Hawaii, Alaska and Guam.
Can I avoid the Jones Act by routing cargo through a foreign port?
No. Section 55102 covers merchandise moved between US points either directly or via a foreign port. Transshipping through a foreign port does not make a domestic move international.
What happens if cargo is shipped in violation of the Jones Act?
The merchandise can be seized and forfeited, or the government can recover from the person who transported it or caused it to be transported an amount equal to the value of the merchandise or the actual cost of the transportation, whichever is greater. CBP enforces the law.
Who can grant a Jones Act waiver?
The Department of Homeland Security, under 46 U.S.C. 501. A waiver can be granted at the request of the Secretary of Defense for national defense needs, or by the agency head after a presidential determination and a MARAD finding that no qualified US-flag vessels are available. The second type is limited to 10 days at a time and 45 days in total for one set of events.
Sources
- 46 U.S.C. 55102 — Transportation of merchandise — Office of the Law Revision Counsel.
- 46 U.S.C. 501 — Waiver of navigation and vessel-inspection laws — Office of the Law Revision Counsel.
- Domestic Shipping (Jones Act) — Maritime Administration (MARAD).
- CSMS #69519766 — Jones Act waiver, updated guidance — U.S. Customs and Border Protection.
General information, not legal, tax or financial advice. Regulations change; confirm current requirements with the agency before acting.