On March 19, 2026, the U.S. Customs and Border Protection  published a notice confirming the issuance of a 60-day limited waiver by the Department of Homeland Security permitting foreign-flagged vessels to operate in the U.S. coastwise trade for the purpose of transporting at least 659 types of commodities . The waiver is anticipated to be in effect through 11:59 PM EDT on Sunday May 17, 2026. White House Press Secretary Karoline Leavitt previously explained that the waiver was issued in order to “mitigate the short-term disruptions to the oil market as the U.S. military continues meeting the objectives of Operation Epic Fury.”

U.S. cabotage laws, commonly referred to as the Jones Act, normally require that any vessel trading between U.S. ports be U.S. flagged. Generally, U.S. flag requirements for domestic trade include that the vessel is built in the U.S. and is owned and crewed by U.S. citizens. Vessels that are not otherwise eligible to operate in the coastwise trade are permitted to do so only in very limited, narrowly defined circumstances.

Section 501 of Title 46 of the United States Code provides the basis to waive these requirements by executive action. According to the CPB notice, the waiver is issued under 46 U.S.C. § 501(a), which provides that “on request of the Secretary of Defense, the head of an agency responsible for the administration of the navigation or vessel-inspection laws shall waive compliance with those laws to the extent the Secretary considers necessary in the interest of national defense to address an immediate adverse effect on military operations.” The statutory language is broadly written to mandate the waiver upon request, and the authority to determine whether a waiver is “in the interest of national defense” is made solely by the Secretary of Defense. However, in an effort to ensure transparency and due consideration for those coastwise qualified U.S. vessel owners with assets to deploy, the waiver requirements were tightened in 2021 to require communication by the Secretary to Congress within 24 hours of the request explaining the “circumstances requiring such a waiver” and confirming that “that there are insufficient qualified vessels to meet the needs of national defense without such a waiver.”

Vessel owners and other interested parties should proceed carefully when assessing how the waiver may affect their operations. Although the official waiver has not yet been published and its exact parameters remain unclear, the CPB guidance (CSMS #68096516) outlines the current requirements for vessels trading pursuant to the waiver. In particular, parties should confirm that any commodity they plan to transport is included, by HTS number, on CPB’s list of potentially covered products, and should ensure full compliance with all applicable notification and reporting obligations. Parties should also monitor CPB and DHS communications for any further updates that may alter the waiver’s scope, timing or enforcement approach, and evaluate how any such developments may impact existing contractual arrangements.

The potential for legal and/or congressional challenges to the official justification for the waiver may also increase as circumstances change during the waiver period. We are closely monitoring these developments and recommend that stakeholders consult with their usual WFW contact to confirm the most up-to-date status, scope and conditions of the waiver.