The Fertilizer Institute thanks the Trump Administration for its decision to temporarily suspend the Jones Act to support the timely movement of fertilizer across the United States as fertilizer supply continues to be impacted by the closure of the Strait of Hormuz as part of the wider conflict in the Middle East.
The waiver will allow foreign-flag vessels carrying fertilizer and oil to call between U.S. ports.
“This action is especially important given the structural challenges in fertilizer logistics. The U.S. faces a classic mismatch between demand geography, where fertilizer is needed by farmers, and production geography, where fertilizer is produced,” explained TFI president and CEO Corey Rosenbusch. “Expanding transportation flexibility can help alleviate that strain.”
By increasing access to additional shipping options, this temporary 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.
“It can cost significantly less to ship fertilizer internationally than between U.S. ports, where Jones Act requirements can nearly double transportation costs,” Mr. Rosenbusch said.
The Administration’s effort reflects a recommendation shared by TFI in a March 9th letter to the White House to help address transportation challenges impacting fertilizer availability.
(Photo from The Fertilizer Institute)