Key facts
- Puerto Rican propane buyers have purchased 24% of their annual demand from the US since mid-March.
- A Jones Act waiver facilitated these increased imports.
- Importers are seeking a permanent Jones Act exemption for Puerto Rico.
- Supply security concerns are driving the request for a permanent waiver.
- The Jones Act requires goods shipped between US ports to use US vessels.
- Waivers to the Jones Act are typically granted for specific circumstances.
Puerto Rico's propane imports have seen a significant increase, with buyers securing 24% of their annual demand from the United States since mid-March. This rise is directly attributed to a Jones Act waiver, which temporarily eased restrictions on shipping. The waiver has enabled Puerto Rican propane purchasers to source their fuel from US suppliers, addressing previous supply chain vulnerabilities.
In light of the improved supply situation and the ongoing concerns about energy security, importers are now actively pursuing a permanent exemption from the Jones Act. This move reflects a desire for sustained and reliable access to propane from the US mainland, ensuring greater stability for the island's energy needs. The current waiver has demonstrated the benefits of direct sourcing from American producers.