UPDATE 1-U.S. waives Jones Act to help get fuel to Northeast

[dipsydoodle]

Source: Reuters

WASHINGTON, Nov 2 (Reuters) - The U.S. government issued a temporary blanket waiver on Friday of the Jones Act, which will allow foreign-flagged oil tankers from the Gulf of Mexico help supply the Northeast with fuel after Hurricane Sandy shut two New Jersey refineries.

The waiver from the Department of Homeland Security is effective immediately and runs through Nov. 13.

The Jones Act, created to support jobs in the maritime industry, requires that goods moved between U.S. ports be carried by ships built domestically and staffed by U.S. crews.

The American Maritime Partnership, or AMP, a domestic maritime industry group, said it was not aware of any circumstances where U.S. vessels have not been available to meet transportation needs for fuel. But it supports waivers in the aftermath of the superstorm that also wiped out power to many gasoline stations in the Northeast.

Read more: http://www.reuters.com/article/2012/11/02/storm-sandy-oil-waivers-idUSL1E8M24QW20121102

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Merchant Marine Act of 1920 http://en.wikipedia.org/wiki/Merchant_Marine_Act_of_1920

[dixiegrrrrl]

1. Good move, but curious about Homeland Sec. being the "boss" on this.

Why would a supposedly anti-terrorist agency be the one to waive a maritime employment act?

[SoCalNative]

3. Since they are ultimately responsible

for the security of all ports they would have the last say as to what vessels would be allowed into those ports.

[dipsydoodle]

5. Security isn't an issue under the Jones Act

I think you may find - its a simple protectionist policy under which in modern times the US are probably net losers.

[Sophiegirl]

11. When the DHS was created..

Frantically, under the Bush administration (to appear they were actually making urgent changes to respond to terrorism) rolled many existing agencies under that umbrella.

Here is a partial list. Too many to name since I am work and don't have time to make a complete list.

United States Citizenship and Immigration Services
U.S. Customs and Border Protection
Transportation Security Administration
United States Secret Service
Federal Emergency Management Agency

There are more, but these are the major ones.

[pscot]

18. It was a huge centralization of power

Interior Ministries are dangerous. They thrive on paranoia.

[Sophiegirl]

4. FEMA

Is part of DHS. THAT's why. If the waiver is part of the relief effort, it is direct support of Disaster Response.

[dixiegrrrrl]

8. Ahh, yes...I can see that...in a roundabout way.

[Sgent]

17. Coast Guard

is responsible for enforcing the Jones Act -- and the USCG belongs to DHS unless its been reassigned to the Navy (not common).

[Roland99]

2. But are the ports operational to receive?

[freshwest]

7. Someone said on another thread that the navy and submarines have been called to provide electricity

As well as clean drinking water and medical care (as they likely did in Japan, I guess). I wish I'd bookmarked those threads because the details from our members who served on those vessels gave information that few in the civilian life know about.

That may help them get those ports ready. Naval vessels and tankers are able to do a lot of things that most of us don't know about because we haven't worked them. They could pump the water out, send skilled people and get that oil into those refineries and ready to go.

The capacity of the military to do much, more than Rush Limbaugh's function of 'kill people and break things' is awesome and I can see why Obama wants those soldiers to come home and rebuild our country.

It's been strange for me lately. Many of us don't want to see any militarization on the homefront. But a lot of our wealth has been put into training and equipping the military in more than just weaponry. They can help.

[Posteritatis]

15. At this point I'd assume the ports are crawling with military engineers

To say nothing of a lot of the ports' own personnel. I imagine they could make something work at this stage.

[patricia92243]

6. Is it gasoline that could immediately go into cars/heating, or is just unrefined and is of really

no use if the refineries are still without electricity.

Anyone know???

[TreasonousBastard]

9. Not a problem. Gasoline, fuel oil and diesel ar commonly moved up and down the ICW in barges and...

large tankers can use deepwater ports here to discharge gasoline into the terminals-- and there are LOTS of terminals around here. The only question is which ports and terminals are in shape to receive the ships and barges-- the refineries and ports are often pretty much joined, or at least next to each other, so electricity and storm damage is a shared problem. And, even if there's no nearby refinery, the terminals are still on the water and suffer damage.

[Sophiegirl]

10. I'm not aware of refineries in the upper East Coast

Could be wrong though. But that is probably why the tankers are making their way up to the area.

[patricia92243]

12. New Jersey, Delaware - more but I can't think of them right now.

[dipsydoodle]

14. Link has been expanded

"Benchmark New York Harbor gasoline futures dropped 5 cents, or 2 percent, on news of the waivers, which could allow shippers to divert cargoes that are en route to Europe or Latin America to the depleted Northeast market."

and

"Shipping sources said the slow return of power to ports in the New York Harbor had them considering delivering fuel to nearby cities such as Boston which could boost supplies available in the wider Northeast region.

Energy experts said the waiver might not bring immediate relief to fuel-strapped New York and New Jersey, where two refineries were shut by Sandy. But, in the longer term, shipping alternatives could help ensure steady supply."

http://www.reuters.com/article/2012/11/02/storm-sandy-oil-waivers-idUSL1E8M24QW20121102

[dipsydoodle]

13. Reuters article states

"gasoline and diesel"

That may have been added when their link was updated.

see also :

The waiver applies to refined products that are headed from domestic ports to the Northeast, Craig Fugate, administrator of the Federal Emergency Management Agency, told reporters today.

http://www.bloomberg.com/news/2012-11-02/u-s-waives-jones-act-to-help-responding-to-storm-sandy.html

[llmart]

16. "We don't need no stinkin' gubmint interference.....

in our lives" said the low information teabaggers.

These are the sorts of things that our government does for us all the time that stupid people forget about when they repeat that meme of too much government in our lives. They also forget about how these people who work for the government get paid and then pump money into the economy just like other workers.

I'm so sick of the stupididty of Repugs.