News Release: 4/16/2026

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April 16, 2026

Every few years, high gas prices resurrect the same villains, but the math tells a different story.

Rhythmic and reliable as the tides, here we go again. Gas prices rise, and right on schedule, someone proposes that the Jones Act is to blame and that a federal waiver would send prices tumbling. It happens during hurricane season, during pipeline disruptions, and now, with the current administration’s comments on crude markets rattled by Middle East tensions. As a maritime attorney based in Houston, when I hear it being suggested to reduce fuel prices by waiving the Jones Act, I feel a particular responsibility to explain why that fix would likely make things worse.

The Jones Act, briefly

The Merchant Marine Act of 1920 requires that cargo moved between two U.S. ports be carried on vessels that are American-built, American-owned, American-flagged, and crewed predominantly by American citizens or permanent residents. Critics argue these requirements raise costs; supporters point to maritime jobs, industrial capacity, and national security. While that debate is beyond the scope of this article, I would like to address one specific claim: that Jones Act tanker rates are inflating your gas prices, and that foreign-flagged vessels would produce significant savings for consumers. This claim is testable, and when you test it, it fails.

 

A quick primer on Worldscale

What is Worldscale?

Worldscale (WS) is a unified global rate system covering over 350,000 tanker voyage variations. The Worldscale Association publishes annual flat rates — in dollars per metric ton — calculated so that net daily revenue is equivalent across all routes after port costs, bunker fuel, and canal tolls. Owners and charterers then negotiate as a percentage of that flat rate, called “Worldscale points.” So, a voyage at WS200 pays 200% of the flat rate. Critically, Worldscale publishes flat rates for domestic U.S. voyages — routes foreign-flagged vessels cannot currently serve. By comparing those flat rates against live market WS levels, we can estimate exactly what it would cost to substitute a foreign tanker on a Jones Act route today.

The numbers that matter

The 2026 Worldscale flat rate for Houston to New York is $10.88 per metric ton. The market today quotes comparable voyages at approximately WS410 — 410% of the flat rate — equating to roughly 14.5 cents per gallon. A Jones Act tanker on the same run costs about 13.5 cents per gallon. The Houston–Fort Lauderdale comparison is similar: foreign-flag freight runs about a penny per gallon more.

Freight cost comparison — Jones Act vs. foreign-flag tanker (2026)

Houston → New York 13.5¢ Jones Act / gallon

14.5¢ FOREIGN-FLAG / GALLON

Houston → Fort Lauderdale Lower ¢ Jones Act

~1¢ more FOREIGN-FLAG / GALLON

Global tanker markets are tight right now, and the same geopolitical pressures driving retail fuel prices are also driving up international charter rates. Jones Act tankers, insulated from those market disruptions, are currently the cheaper option for domestic coastal movement of refined products. That is an economic reality, not a political argument.

 

What this means for policy

The fuel price problem is a global crude supply problem. It is a geopolitical problem, not a Jones Act problem. Treating it as one based on assumption rather than market data risks imposing real costs on American maritime workers and national security, without delivering consumer benefit that justifies it. For anyone genuinely interested in lowering fuel costs, the path forward begins with understanding how maritime freight markets actually work.

 

We at the Herd Law Firm are proud to fight for seamen, maritime workers and passengers in all types of personal injury and death claims. As maritime personal injury attorneys (and sailors ourselves!) located in northwest Houston, we never waver in our commitment to help these maritime workers, passengers, and their families when they are injured or mistreated.

Rate data reflects 2026 Worldscale flat rates and approximate current market WS levels at time of writing. Freight markets change continuously. Nothing in this article constitutes legal advice.

Contact:
Charles Herd, Principal
charles.herd@herdlawfirm.com, (713) 955-3699