Foreign Tanker Ships US Oil from Texas to Pennsylvania Following Waiver

• The Malta-flagged HTM Warrior transported Bakken crude from Phillips 66's Beaumont, Texas terminal to Monroe Energy's Trainer refinery in Pennsylvania in early April
• The Jones Act waiver, issued in March for 60 days, temporarily suspends the 1920 law requiring domestic vessels for inter-U.S. port shipping of fuel, fertilizer, and other goods
• The waiver addresses urgent supply chain issues including sharp gasoline price increases and disrupted fertilizer supplies for U.S. farmers due to the Iran conflict

Summary

A foreign-flagged tanker has completed the first known crude oil shipment between U.S. ports under a temporary Jones Act waiver issued by President Trump in March 2025. The Malta-flagged HTM Warrior transported Bakken crude from Phillips 66's terminal in Beaumont, Texas, to Monroe Energy's Trainer refinery in Pennsylvania, loading in early April and discharging last week.

Key Details:

• The Trump administration issued a 60-day Jones Act waiver in March, suspending the 1920 law that typically restricts domestic cargo transport to U.S.-flagged vessels
• The waiver covers fuel, fertilizer, and other goods between U.S. ports
• An extension of the waiver is currently under consideration by the administration, according to Axios

Market Context:

The rare waiver represents an urgent response to supply disruptions and price pressures stemming from the Iran war. The conflict has triggered sharp increases in gasoline prices and disrupted critical fertilizer supplies for U.S. farmers, prompting emergency measures to enhance domestic logistics flexibility.

Companies Involved:

• Phillips 66: Crude supplier from Texas terminal
• Monroe Energy: Receiving refinery in Pennsylvania
• HTM Warrior: Foreign-flagged vessel facilitating transport

Implications:

The Jones Act waiver provides temporary relief to domestic supply chain constraints, potentially easing regional price disparities and improving distribution efficiency. The use of foreign vessels reduces transportation costs and expands available shipping capacity during the crisis. Whether the waiver becomes extended will significantly impact domestic energy and agricultural markets, particularly for regions facing supply bottlenecks due to limited Jones Act-compliant vessel availability.