Keeping Up with the Jones Act: A Critical Boost for Spring Fertilizer Movement

In early April, the Trump Administration temporarily suspended the Jones Act. This move was welcomed by The Fertilizer Institute (TFI) as part of the association’s efforts to ensure the timely movement of fertilizer across the U.S.

“This action is especially important given the structural challenges in fertilizer logistics,” says TFI president and CEO Corey Rosenbusch. “The U.S. faces a classic mismatch between demand geography, where fertilizer is needed by farmers, and production geography, where fertilizer is produced. Expanding transportation flexibility can help alleviate that strain.”

According to TFI, the Jones Act requires that cargo moved between two U.S. ports must be transported on vessels that are:

  • Built in the U.S.
  • Owned by U.S. citizens.
  • Flagged in the U.S.
  • Crewed primarily by U.S. citizens or permanent residents.

The intent of the law was to support a domestic maritime industry and shipbuilding base, protect U.S. jobs, and strengthen domestic commerce and supply resilience. However, says Rosenbusch, as fertilizer supply continues to be impacted by the closure of the Strait of Hormuz, the costs to shippers dealing with U.S. ports has become a major concern.

“It can cost significantly less to ship fertilizer internationally than between U.S. ports, where Jones Act requirements can nearly double transportation costs,” he says.

By increasing access to additional shipping options, adds Rosenbusch, the temporary Jones Act waiver will help mitigate cargo transportation challenges through greater availability of seagoing vessel port-to-port transportation and support farmers during the critical spring application season.

In essence, says Chris Glen, Vice President of Public Affairs at TFI, the Jones Act waiver will accomplish the following for ag retailers and their grower-customers:

  1. Expand transportation options. The waiver can allow products to move on non-Jones Act vessels between U.S. points when domestic vessel availability is constrained.
  2. Lower transportation costs in some cases. TFI has long noted domestic coastwise moves can sometimes cost materially more than international alternatives. Temporary flexibility may reduce freight costs that would otherwise feed into fertilizer prices.
  3. Improve supply repositioning speed. Fertilizer can be redirected more quickly to regions facing tight supply or seasonal pressure, especially important during spring application windows when timing is critical.
  4. Support inventory reliability for retailers. Retailers depend on products arriving when needed, not simply existing somewhere in the system. Transportation flexibility can help prevent localized shortages.
  5. Relieve pressure on other transportation modes. When vessels can move products more efficiently, it can reduce the strain on rail and truck networks, which are already critical to fertilizer distribution.

But, adds Glen, the Jones Act waiver is only temporary. Originally, it was supposed to expire by the middle of May.

“But it has since been announced that the waiver would be extended by an additional 90 days,” he says. “Jones Act restrictions will come back into effect upon the waiver expiring.”

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