Freight Pulse & Law Update: Jones Act Waiver Tightens, IRS Tax Ruling, and More

Four policy changes are reshaping freight, rail, customs, and tax planning. Here is what shippers, carriers, and logistics teams need to know before the next move.

What changed in the Jones Act waiver?

The Jones Act waiver will continue for another 90 days beginning August 17, but it is no longer a broad release valve. The revised policy targets energy and agriculture-related commodities and sends each proposed voyage through MARAD/Pentagon consultation before approval. Analysts expect only “pennies per gallon” in fuel relief. Reuters

• Effective: August 17, for 90 days.

• Scope: Energy, fertilizer, and eligible agriculture-related cargo.

• Review: Voyage-by-voyage approval, with MARAD consultation.

Why does the IRS ruling matter?

IRS guidance issued August 12 changes the tax file, not the waiver itself. Foreign corporations earning income from waiver voyages between U.S. ports generally cannot claim Section 883’s international shipping exclusion or related treaty benefits. They must report the income on Form 1120-F and segregate domestic voyage records. IRS guidance

• Do not use Schedule S for this waiver income.

• Review withholding, treaty positions, and effectively connected income with tax counsel.

What did the rail and customs rulings change?

Two rulings add operating discipline. The 11th Circuit upheld FRA’s 2024 minimum two-person crew rule, while CBP’s June 24 interim final rule ended the $800 de minimis exemption for nonpostal imports. Shippers now face continued rail staffing requirements and formal or informal customs entries for low-value cargo. Court opinion · CBP rule

• Railroads must follow the two-person standard unless an exception applies.

• Ocean, air, truck, rail, and express imports must now clear through customs procedures.

What does a drunken raccoon have to do with logistics?

Less than the Jones Act: but a Virginia raccoon’s liquor-store rampage offered a useful reminder: uncontrolled access creates costly exceptions. The animal knocked over bottles, then passed out. Operators should secure inventory, audit unusual movements, and maintain chain-of-custody records. AP Oddities

How should shippers respond?

Treat these changes as a data-and-documentation test. Third party logistics providers and supply chain management companies should connect customs records, SKU controls, routing, and customer updates through logistics software. Lanta Logistics uses FlowOps by Lanta, a warehouse management system supporting real-time inventory, dispatch, fulfillment, and accountability.

• Use inventory management for ecommerce with item-level records.

• Align 3PL fulfillment services with formal and informal entry workflows.

• For 3PL Maryland and Mid-Atlantic fulfillment, Lanta combines a food-grade warehouse, Hazmat certified 3PL operations, and a connected Glen Burnie warehouse. Request a quote or book a FlowOps demo.