* Jones Act waiver expires Nov. 13, ships must unload by
* Waiver attracts 9 companies, 10 shipments
* No word from DHS on potential extension of waiver
WASHINGTON, Nov 13 Nine companies plan to use a
rare waiver that expires Tuesday allowing foreign-flagged ships
to take oil products and additives from the Gulf of Mexico to
the Northeast to help relief efforts after Superstorm Sandy, the
The Department of Homeland Security issued a blanket waiver
early this month of the 1920 Jones Act to help get fuel to the
region. The waiver allows foreign-flagged ships to load oil
products from the Gulf of Mexico until Nov. 13 and deliver them
to ports in the Northeast by Nov. 20.
The DHS has not yet said whether the waiver will be
Nine companies had planned to use the waiver as of Tuesday
to move 10 cargos of oil products like gasoline, heating oil and
diesel, the Department of Transportation's Maritime
Administration, or MARAD said. The number of companies rose by
four since last Friday. The bureau did not name the companies.
There could be more shipments taking advantage of the waiver as
companies do not have to tell the government they intend to ship
oil to the Northeast until 24 hours after loading in the Gulf of
Oil traders could profit by nearly $2 million on each exempt
cargo of gasoline they are able to ship from Houston to New
York, according to Reuters' calculations.
The journey from the Gulf Coast to New York Harbor can take
about a week, and some shippers are concerned about
repercussions if they are not able to deliver by the deadline.
The Jones Act, part of the 1920 Merchant Marine Act, was
created to support domestic jobs in the shipping industry. It
requires goods moved between U.S. ports to be carried by ships
built domestically and staffed by U.S. crews.