Freight Pulse & Law Update: Jones Act Waiver, FMC Enforcement, and the Rail Ruling

Three federal developments are changing the cost, routing, and compliance math for domestic freight this week. Treat the Jones Act waiver as conditional: not blanket relief: and audit ocean, rail, and cargo-handling assumptions before booking.

What’s moving in freight this week?

Freight is moving under a narrower Jones Act waiver, railroads must keep most covered trains at two-person crews, and the FMC is demanding stronger justification for expedited surcharges. Operators should document voyage eligibility, tax treatment, crew-related service impacts, tariff timing, chassis access, and hazmat-export practices before costs reach the customer.

How did the Jones Act waiver change on Aug. 17?

President Trump extended the waiver another 90 days, effective Aug. 17, but narrowed it to specified energy and agriculture-related commodities. Each voyage now receives case-by-case review, with the Pentagon consulting MARAD on whether a compliant U.S.-flag vessel is available. Foreign-flag operators should retain commodity, vessel-availability, and voyage records. CNBC reports that the extension runs through approximately mid-November.

The tax impact adds a second compliance layer. The IRS says income from waiver voyages between U.S. ports is not income from the international operation of ships. Foreign corporations therefore cannot use the Section 883 or related treaty shipping exemptions for that income and may need Form 1120-F reporting. Involve tax counsel before pricing a movement.

What did the Eleventh Circuit decide about rail crews?

The Eleventh Circuit upheld the FRA’s 2024 two-person crew rule in Florida East Coast Railway LLC v. FRA, rejecting the freight railroads’ challenge in a 2–1 decision. Most covered freight trains remain subject to a minimum two-person crew, with defined exceptions. Reuters’ coverage and the court’s opinion provide the ruling’s legal detail.

For shippers, crew requirements can affect schedules, interchange planning, and service-cost assumptions. Recheck rail contingencies in your warehouse management and transportation plans.

Why is the FMC tightening surcharge scrutiny?

The FMC is holding carriers to the 30-day tariff-notice rule. Requests to make increases effective sooner need documented good cause and a clear link between the carrier’s cost increase, surcharge amount, and duration. The Commission’s special-permission guidance signals that vague emergency claims will not be enough.

Separately, the FMC continues investigations into carrier restrictions on chassis-provider choice and possible discrimination against U.S. hazmat exporters. The chassis investigation and hazmat-export inquiry make documentation essential. Preserve invoices, booking refusals, equipment instructions, and fee schedules.

How should logistics teams respond?

Third party logistics providers and supply chain management companies should use logistics software and a warehouse management system to connect compliance alerts to inventory management for ecommerce, appointment planning, and customer communications. For a food-grade warehouse or Hazmat certified 3PL, traceable records are operational protection: not paperwork.

Need Mid-Atlantic fulfillment, 3PL fulfillment services, or a 3PL Maryland partner? Lanta Logistics coordinates warehousing and transportation from its Glen Burnie warehouse, while FlowOps provides real-time visibility across inventory and shipments.