Refiners, Not Consumers, Are Biggest Winners From Jones Act Waiver, OSG CEO Says
Overseas Shipholding Group CEO Sam Norton said the Trump emergency Jones Act waiver has benefited U.S. refiners more than consumers, citing rising 3:2:1 crack spreads from about 27% in early 2026 to ~45% in early June and 70%-75% recently. He noted foreign-flag tankers are doing domestic voyages while U.S.-flag ships stay idle. The waiver expires Aug. 16.
How this was made
The 30-second read
Why it matters
The CEO’s analysis argues the waiver has not reduced gasoline or diesel prices and instead coincided with higher refining profitability, while U.S.-flag vessels remain idle as foreign-flag ships perform domestic voyages.
Market read
Policy-driven shipping routing under the Jones Act waiver is positioned as a utilization and competitive issue for U.S.-flag tanker operators, with a clear Aug. 16 decision point.
What to watch
The article does not quantify OSG’s direct revenue or contract exposure to waiver-driven routing, and it relies on a CEO commentary rather than new company filings or guidance.
Background
The Trump administration invoked Section 501 of the Merchant Marine Act in March to allow approved foreign-flag vessels to carry certain petroleum products between U.S. ports, with the emergency waiver set to expire Aug. 16.
Ticker impact
Overseas Shipholding Group CEO Sam Norton argues the ongoing Jones Act waiver has shifted domestic voyages to foreign-flag tankers, sidelining U.S.-flag operators.
Near-term sentiment risk for OSG if the waiver is extended past Aug. 16, with potential upside if it expires and U.S.-flag demand returns.
The piece is commentary, but it cites MARAD approval activity (170 voyages as of July 13) and highlights U.S.-flag idling, which can affect utilization expectations for OSG.
Market effects
Could increase scrutiny of Jones Act waiver policy, affecting demand expectations for U.S.-flag tanker operators and potentially shifting freight economics toward foreign-flag capacity.
U.S. Gulf Coast refining and port activity may see continued domestic cargo routing by foreign-flag vessels, influencing local tanker utilization.
Iran/Strait of Hormuz risk is the stated trigger for the waiver, so any escalation or de-escalation can change waiver justification and shipping patterns.
Counterpoint
Even if refiners capture margins, the waiver may still be necessary to prevent supply disruptions; any consumer-price pass-through could lag or be offset by other market factors.
Key entities
- companyOverseas Shipholding Group
U.S.-flag tanker operator whose CEO argues the Jones Act waiver has shifted domestic voyages away from U.S.-flag vessels.
- government_agencyMARAD
U.S. Maritime Administration, cited as continuing to approve domestic voyages under the waiver (170 approved voyages as of July 13).
- labor_unionSeafarers International Union
Protested the continued operation of a Chinese-flagged tanker performing coastwise voyages.
- companyMarathon Petroleum
Protest location referenced, where a tanker was preparing another domestic shipment.
