In the world of maritime logistics, even the smallest regulatory details can often have a significant impact on operational costs.
One such recent instance was during a non-routine cost review by the GeoServe team, where an unusually high AMS (Automated Manifest System) filing fee of USD 1,450, far above the standard USD 100, was flagged for a foreign-flagged vessel registered in the Marshall Islands.
What caused this spike? The answer lies in the Jones Act.
The Jones Act, officially known as Section 27 of the Merchant Marine Act of 1920, governs maritime commerce in the U.S. waters and between the U.S. ports. It mandates that only U.S.-built, U.S.-owned, and U.S.-crewed vessels may transport goods or cargo between U.S. ports. Foreign-flagged vessels are prohibited from engaging in coastwise trade unless a waiver is granted.
Here’s what happened:
Although this might appear as a simple offload at the same location, the U.S. Customs and Border Protection (CBP) interpreted this point-to-point movement for de-bunkering as coastwise movement.
That meant the Jones Act rules applied, bringing with them added compliance steps:
Re-entering the U.S. waters to offload fuel, even at the same terminal, can be viewed by CBP as coastwise transportation. Without a Jones Act waiver or exemption, such activity is considered non-compliant for foreign vessels. Non-compliance risks include:
GeoServe’s proactive cost monitoring helped identify the anomaly. Clear communication with the port agent and the vessel’s Principal revealed the regulatory necessity of the charge. After validation, the cost was accepted and reflected in the Final Disbursement Account (FDA).
This wasn’t about avoiding the cost—it was about understanding why the cost existed. Small anomalies often point to deeper regulatory requirements. By knowing the rules upfront, operators can make informed decisions and avoid being caught off guard later.
At GeoServe, we remain committed to ensuring this transparency, compliance, and cost efficiency across every voyage.
Understanding the Jones Act isn’t just about legal compliance; it’s about anticipating cost impacts and safeguarding operational integrity. In maritime logistics, attention to detail isn’t optional. It’s essential.
For a detailed overview of the Jones Act and its legal framework, read this article on the official U.S. Maritime Administration website.
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