🚢 By Land and By Sea Podcast
Topic of the Week (5/9/24):
🎙️ New Episode: "Don't miss these deadlines! Maritime Chokepoints (May 13) and Ship-to-Shore cranes/chassis/containers (May 19)"
The Maritime Professor® presents By Land and By Sea - an attorney breaking down the week in supply chain
with Lauren Beagen (Founder of The Maritime Professor® and Squall Strategies®)
📉 Imports are down 20–30% year over year…
📈 But the slowdown might open space for realignment.
From federal nominations to laser carp defenses, this week’s Captain’s Log is full steam ahead.
👇 Here’s what we cover:
🔹 Story 1 – Steve Carmel Nominated by President Trump
A Maersk veteran steps into the top MARAD role—what this could mean for U.S.-flag policy and sealift.
🔹 Story 2 – SHIPS for America Act Reintroduced 💪
New tax credits, fleet expansion goals, and cargo preference mandates make this version stronger than ever.
🔹 Story 3 – Repositioning Opportunities Emerge
Carriers may reposition China-built vessels and consider U.S.-flag registration amid softened demand.
🔹 Story 4 – FY2026 Trump Budget
Ports get infrastructure funding, but HMTF cuts raise concerns—especially for smaller harbors.
🔹 Story 5 – FMC Chokepoints Comments Due May 13
If chokepoints like the Panama Canal impact your cargo, now’s the time to weigh in.
🖥️ Learn more in our e-course → https://www.themaritimeprofessor.com/challenge-page/85e5c58c-49b8-4c25-9863-3eb858b4b75d?programId=85e5c58c-49b8-4c25-9863-3eb858b4b75d
🔹 Story 6 – Great Lakes Laser Carp Defense 🤯
Whitmer and Trump find common ground on invasive species protection at Brandon Road.
🔹 Story 7 – USTR’s Section 301 Maritime Tariffs
New proposals include up to 100% duties on STS cranes, chassis, and port equipment.
🗓️ Comments due May 19
-------------------------------
The Maritime Professor® is an e-learning/educational based company on all things maritime and supply chain - we provide employee trainings, e-content/e-courses, general trainings/webinars, and executive recruiting. Make sure to sign up for the email list so that you will be alerted to when the e-learning content is available, but also, being on the email list will give you exclusive access to promo/discount codes!
Sign up for our email list at https://lnkd.in/eqfZJShQ
Look for our podcast episodes - NOW AVAILABLE:
https://lnkd.in/g4YUbxjs
** As always the guidance here is general and for educational purposes only, it should not be construed to be legal advice and there is no attorney-client privilege created by this video. If you need an attorney, contact an attorney. **
🎙 Thanks for tuning in to By Land and By Sea by The Maritime Professor! If you enjoyed today’s episode, don’t forget to subscribe ⭐ and leave a review 📝.
📚 Want to dive deeper into maritime topics? Join our live webinars 🎧, explore our e-courses 💻, and expand your industry knowledge with online learning 🌍.
🚢 Need customized corporate training? We offer expert-led sessions tailored to your team’s needs!
🔗 Visit www.TheMaritimeProfessor.com to learn more and stay ahead in global ocean
Mark as Played
Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:26):
I got On top To be.
When you see me, come Make someroom.
It's a good night.
Whoa, I'm living bold this iswhat it looks like.
(00:46):
I'm addicted to the world.
Whoa, whoa.
There's still a lot going on inthe world of ocean shipping and
maritime policy, and that isespecially true this month, and
(01:07):
we're only nine days into May.
There was a lot happening inApril.
We have the National MaritimeDay later this month.
I'm expecting more to come down, we'll see.
I've been keeping a close eyeon all of it, from new
leadership nominees andlegislation on the Hill to
proposed tariff on portequipment have you paid
attention to that?
Strategic moves for motioncarriers and a few under the
(01:30):
radar, but like very importantdeadlines that are coming up
very quickly, like next week,quickly to make note of.
There is a lot to talk about,so we're going to talk about it
today.
Hi, welcome back to, by Land andby Sea, an attorney breaking
down the weakened supply chainpresented by the Maritime
Professor me.
I'm Lauren Began, founder ofthe Maritime Professor and Small
(01:53):
Strategies, and I'm yourfavorite maritime attorney.
Join me every week as we walkthrough both ocean transport and
surface transport topics in thewild world of supply chain.
As always, the guidance here isgeneral and for educational
purposes only.
It should not be construed tobe legal advice, and there is no
attorney-client privilegecreated by this relationship.
Nope, no attorney-clientrelationship created by this
(02:15):
podcast.
It's been a while.
If you need an attorney,contact an attorney.
Usually we go through my topthree stories of the week, but
this week every story is a topstory, so let's get into it.
It's the captain's blog.
All right.
Story number one Steve Carmelhas been nominated as maritime
administrator.
Just a few weeks ago, we weretalking about a nominee to the
(02:38):
maritime administrator role.
There's a new nominee to themaritime administrator role.
This is taking over thatnomination that was presented
previously.
President Trump has nominatedSteve Carmel to head the US
Maritime Administration, marad,which would be replacing Brent
Sadler's nomination, which hasnow been withdrawn.
So let's talk a little bitabout Steve Carmel.
I'm still reading about him,learning about him, watching his
(03:01):
previous interviews andpresentations, but he brings a
lot of commercial shippingexperience, most recently with
Maersk Line Limited, which isthe US flag subsidiary of the
Global Ocean Carrier Maersk.
This is great.
This is great.
Look, he is a well-known voicein sea lift strategy and
maritime economics.
Anyways, his nomination to mesuggests perhaps a policy shift
(03:26):
toward commercial integration,and maybe not even a policy
shift, but like an intention.
There has been a lot, a lot ofvoices saying we needed more
commercial supply chain industryrepresentation at the highest
levels of leadership.
We have been getting a lot ofmilitary maritime discussion
(03:47):
right.
Of course, when it comes toshipbuilding, you get a lot of
defense readiness conversations,you get a lot of military
readiness conversations and atthe heart of it, that is what
this, all of this maritime focus, is about.
But it's also about supplychain and it's also about the
ecosystem of the supply chainand the commercial integration
(04:08):
and I think we're starting tosee that in some of the
supporting roles to theotherwise ocean shipping right.
We're seeing drayage providers,trucking providers, especially
on the West Coast, talking abouthow some of these tariff and
trade discussions and the lowerimport volumes, the impact that
that's having on them now andnot later in the month, when
(04:30):
it's being said that some of theimports might be shelves might
start to find themselves emptyby the end of the month or early
June.
That's what I've been hearingfrom some of the importers out
there.
But the thing is, if you don'thave the total integration on
the commercial side and on thefull supply chain understanding
of the ecosystem.
You wouldn't necessarily thinkabout all the intermodal pieces,
(04:52):
all of the drage providers andhow it might affect them earlier
than the actual end resultperson consumer going out there
to buy goods.
So all of this to say I'mexcited.
I think this is cool.
He may be especially wellpositioned to bridge that gap
between private and publicsectors here and a much needed
(05:12):
connection to the US basisglobal supply chain
vulnerabilities.
I think that this is great thathe has a I mean firsthand
experience of how oceanshipments work, having worked
for the US-like subsidiaryMariscaline Limited.
So Mara does oversee USMerchant Marines, strategic
Sealift and programs like theReady Reserve Force, which is
(05:33):
basically like emergency backupfleet for national crises.
Maritime is going to need athree-pronged approach here and
this is what I'm seeing kind ofas one of the themes right,
whenever I look at newadministrations I try to find
the themes among them and Ithink I probably mentioned this,
but I see a three-prongedapproach here that's needed for
revitalization effectiverevitalization in the maritime
(05:53):
sector.
We need the ships.
We've been hearing a lot aboutthe ships.
We have Ships Act.
We have the Executive Orderthat talks a lot about
shipbuilding.
We need US ships, but in orderto have ships that last, we need
mariners to operate those ships.
We're going to be seeing a lotmore coming out about mariners,
but I'm already seeing taxbreaks, I'm already seeing
public student loan forgivenessincentives.
(06:15):
I'm seeing things that arehelping the mariners themselves
and also the Maritime Academiesto offset some of the costs.
The new Ships Act talks aboutfuel subsidies for these giant,
beautiful vessels that theMaritime Academies are receiving
, but also now there's somefunding appropriated so that
they can actually use thoseships, sail those ships with
(06:36):
fuel subsidies.
That's a big piece.
But then the third part iscargo, and I think that's where
we're seeing some of thesetariff discussions talk about
moving and exemptions of theUSTR Section 301 waivers that
might be associated with thecargo coming on US flag vessels
(07:00):
companies or just some sort ofan intention to US owned
operated that's trying to impactthe movement or the behavior of
shippers trying to decide wheretheir cargo will go.
So it's the three prongedapproach it's the ships, it's
the mariners and it's the cargo.
And keep that in mind as theseproposals continue to trickle
(07:20):
out.
We're going to see an emphasison really trying to impact that
behavior, based on theshipbuilding, the manning of
those ships and where theshippers are choosing to ship
their goods.
All right, story number two.
So Ships for America Actreturns last week with
reinforcements.
So the Ships for America Act wasreintroduced into Congress and
it marked a pivotal step towardrevitalizing the US maritime
(07:42):
industry.
It kind of creates thelegislation that's supportive of
some of these otherwiseinitiatives floating around out
there.
This gives it a hook.
The bipartisan legislation aimsto expand the US flag fleet and
strengthen the nation'sshipbuilding capabilities.
So the original act wasintroduced December 2024.
The Ships for America Actsought to expand the US flag
fleet to 250 vessels by 2035,which would enhance strategic
(08:07):
sea lift capacity.
It also sought to rebuild theUS shipyard industrial base,
providing financial incentivesfor modernization and expansion
of US shipyards and just thebase in general.
This is interesting.
This is something that we sawin the executive order.
It establishes a maritimesecurity advisor within the
White House to coordinatemaritime policy across federal
agencies.
We already have somebody inthat role, but it's great to see
(08:30):
a maritime person that close tothe White House because, as
it's rightly being pointed out,maritime security is national
security.
We're also seeing somethinginteresting creating a maritime
security trust fund to supportongoing investments, maritime
infrastructure and workforcedevelopment.
There's also a MaritimeProsperity Zones that's being
introduced both in the executiveorder and a little bit more
(08:52):
explanation in the Ships forAmerica Act.
I think that both the MaritimeSecurity Trust Fund and this
Maritime Prosperity Zones aregoing to be really interesting.
I think that the MaritimeProsperity Zones is going to be
really interesting.
I think that the maritimeprosperity zones is going to be
probably something akin to Idon't know if you knew this, but
Massachusetts has designatedport areas, dpas.
Now, these are areas reservedfor maritime industrial uses.
(09:14):
Obviously, ships need ashoreline and, as the world is
developing condos alongshorelines, these DPAs, or
perhaps maritime prosperityzones, are going to be more
important.
But maritime prosperity zonesmight not only be along the
shoreline, they might also beelsewhere, and I'm thinking that
maybe transloading, maybethere's something there I don't
(09:37):
know, we'll see but something topay attention to.
I think that these new ideasare going to be a little bit
more all-encompassing and Ithink that there's going to be
some really there's going to besome great opportunity for
innovation and creative thinkingto be applied to Maritime
Security Trust Fund or MaritimeProsperity Zones.
We're also going to see enhancedmariner recruitment and
(09:58):
training, ensuring a robustpipeline of qualified personnel.
So that's not only from theoriginal act, but now the
reintroduction.
There are investment taxcredits in the reintroduction,
kind of an expansion of thosewe're going to see.
Or we are seeing strategiccommercial fleet program, so
establishing a program toincrease the US flag fleet to
250 vessels, like we saw,mandating that these ships be
(10:18):
built US built US flag fleet to250 vessels, like we saw,
mandating that these ships bebuilt US, built, us crude and
capable of serving nationaldefense interests.
And then also allowingtemporary use of foreign-built
ships with a phase-out by fiscalyear 2030.
Some of these reintroductions Ithink the new proposal out of
USTR Section 301 and now thisreintroduction of the Ships Act,
is allowing for a longer runway, because we obviously can't
(10:41):
just flip the switch, we can'tjust make vessels within a
week's notice it's going to takelonger than that and so
allowing temporary use offoreign built ships with a phase
out target here the target is2030, I think is a more
realistic approach and also kindof a more more realistic
(11:05):
approach and also kind of a morenuanced approach.
That's not quite exactly whatI'm trying to say, but a better
way of doing it because it'sgoing to allow for that
transition from the currentreliance on foreign built ships
to US built ships, once we getsome of the other components
going and we get that USshipbuilding industrial base
expanded.
We're also seeing cargopreference requirements included
in this reintroduction.
(11:25):
We're seeing those maritimeprosperity zones.
Like I said, this isintroducing zones offering
capital gains tax exemptions formaritime industrial investments
in designated regions.
But then also in thisreintroduction, a Ship America
office.
So establishing an officewithin MARAD, the Maritime
Administration, to promote theuse of US flag vessels by
commercial shippers.
And I think that this issomething that isn't necessarily
(11:48):
it's part of the promotionalobjectives of MARAD, but this is
something that I don't know ifcommercial shippers are taking
into consideration.
There are US flag companiesthat do international container
movement shipment.
You can actually use a US flagcompany.
Like I said, it might be asubsidiary of a larger global
(12:09):
ocean carrier, but there are USflag companies APL, marist Line
Limited that can actually shipcargo containers internationally
Something to look at.
And now, with the Ships Americaoffice, it's something that I
think we're going to see perhapsmore utilization of.
Also developing a verificationprogram for self-certification
(12:31):
industry standards under theShip America office.
So why does all this matter?
China's dominance in globalshipbuilding right, this is what
it is.
The Ships for America Act talksabout the dwindling US fleet.
This legislation representsthis comprehensive strategy and
a legislative hook to enhancethat national security by
ensuring reliable maritimelogistics in times of conflict.
(12:51):
That's kind of one of thethemes going behind why this is
all happening, why this iselevated to a top five issue of
the presidential office.
It's going to stimulateeconomic growth through
investment in shipyards andcreation of high paying jobs.
It's going to reduce dependencyon foreign vessels for
transporting critical goods and,particularly as we continually
(13:14):
see reducing dependency onChina-based movements and
China-based companies.
And it's also going to promoteinnovation in shipbuilding
maritime technology.
There were some pretty coolsections of both the Executive
Order and Ships for America Actthat talks about kind of this
R&D, this research anddevelopment, this new section of
(13:35):
maritime innovation, and Ithink that this will be cool.
I think in one of my pastepisodes I talked about we might
see the F-150, but then wemight also see the Cybertruck,
and I think that that'ssomething that this
administration seems to belooking at is, let's do a copy
and paste of just a paperweightthat floats, that carries
containers, but then let's alsobuild something that's cool.
(13:55):
That might be something that'slike yeah, I want to buy that
ship.
So we'll see.
We'll see where this goes, butI think that this is interesting
and Ships for America Act wasreintroduced last week.
Go take a look at it.
There's some new stuff in there.
Story number three Look,reports are saying that imports
are down, and certainly that'strue.
But I think that there's somesilver lining here.
(14:15):
I think that there's somesilver lining and I think that
there's some things happening,maybe a little bit more in the
background, that we're notnecessarily seeing, but I think
that these are important thingsto note.
Look, us imports are down.
There's reports saying 20 to 30percent declines year over year
.
I think it's important to notethat some of these are year over
(14:45):
year, month to month reviews,but then some of them are.
We also saw an increasehappening in January and
December when things were kindof front loading, knowing that
things were going to shift withthe new year and with the new
administration.
But still, 20 to 30% declinesis significant and, like I said,
it's starting to affect therest of the ecosystem.
But there might be some silverlinings into this softer market
and I think one of those is,with fewer boxes moving, I think
ocean carriers are potentiallyusing this time to reposition
(15:11):
their fleets.
So we've talked about the USTRSection 301 proposals and it
talks all about China-builtships, china-operated ships, but
it's the China-built ships thatI think is going to be part of
this repositioning and, with adowned demand right now, ocean
(15:31):
carriers can reposition theirvessels that are perhaps
Korean-based vessels orelsewhere-built vessels to be
the ones that call the US basedvessels, or elsewhere built
vessels to be the ones that callthe US to try to circumvent, to
try to get around getting anysort of penalties on tariffs
that are going to be assessedunder the USTR Section 301.
(15:53):
But then I think that also goesto some of the blank sailings
that we're seeing.
I've been hearing highernumbers of blank sailings, which
sometimes blank sailings can befor repositioning of vessels,
it can be for operational pauses, skipping ports for certain
reasons, but I also think thatthat might be related to some of
(16:14):
the repositioning of vesselsfor longer term strategic value.
Now, not only are we going tosee the ocean carrier
specifically perhapsrepositioning the vessel and you
can Google vessels if you.
You know you can even Googlethe Ever Given or whatever
vessel to find out.
You could probably find outpretty easily where that vessel
was built and then you'll knowwhat your exposure.
(16:35):
For the most part it's the samevessel on a specific trade
route.
You'll know with someregularity and with some
certainty once things settle outright where we have 180 day
pause.
So we're looking at you knowthe fall where we're going to
start seeing any of thosesection 301 penalties or fees
come in.
But what you can do is look atthe vessel that is shipped on,
(16:56):
which is usually informationincluded in some of your
shipping documents Google it andsee is that a vessel that is
going to get pinged by some ofthese USTR Section 301 tariffs
or not?
Something to just take an extrastep to look at?
I also think that something thatmight also be happening is we
(17:18):
might start seeing somereflagging of some of these
vessels into US registry or intoUS flag companies.
Like I said, we have MaerskLine Limited, which is a
subsidiary of the larger Maersk.
They might start to move someof their vessels over into
Maersk Line Limited to try toreflag it, because they're going
to see benefits to that.
We see that in the Section 301.
(17:39):
There's some waivers andvariances for US-owned,
us-operated companies.
I think that that's somethingthat we're going to see continue
because, like I said, it's athree-prong approach.
We have ships, we have marinersand we're going to need the
cargo to sustain it, becauseonce you inject the cash at the
beginning, it's going to need tosustain itself, and I think
(17:59):
that's where we've moved thecargo over onto these ships and
that's what's being attemptedhere.
So all I'm saying is I thinkthat there's some silver linings
to the downed demand.
Right now that's happening.
Repositioning of vessels,because I don't think the ocean
carriers want these fees anymore than anybody else does, and
certainly the fees willprobably get passed through, of
course, because it's notnecessarily the ocean carrier's
(18:22):
fault that the fees are beingassessed and they're only going
to be assessed for up to fivecalls per vessel.
So there is some reprieve fromall of these fees.
But pay attention right.
Knowing which vessel your cargois shipping on and knowing if
that vessel was where it wasbuilt might be important to
(18:42):
figure out.
Are you going to be subject tosome of these larger fees?
And then, like I said, some ofthese flags, some of these
vessels might end up gettingreflagged to US registry, and
then that might also provide anopportunity.
So what is reflagging?
Maybe I should stop there for asecond.
It's when a vessel that'sregistered under one country's
flag like Panama or Liberia orMarshall Islands those are
(19:05):
usually the flags of convenienceis switched to another like the
United States.
There's also just yesterdayreports and I haven't dove too
far into it so I didn't do aseparate story on it but the US
Virgin Islands might be anotherpotential flag that might come
under US flagging, but being USVirgin Islands, which would, I
(19:25):
guess, in theory have lessrestrictive requirements, and so
perhaps that might be the USoption for flags convenience.
But yeah, so doing sore-flagging vessels comes with
more regulatory requirements andcosts if it's under the US
directly, but it can also unlockaccess to US government cargo
and national security programslike the Maritime Security
(19:46):
Program, msp.
But I also think that if wehave a US flag of convenience,
there might be an opportunityfor some financial gains there.
So we'll see.
We'll see how all of thishappens.
But look, it's implemented.
These proposals can incentivizeoperators to rethink how and
where their vessels are flagged,maintained or even deployed,
and I think that we're going tobe seeing some reflagging, some
(20:07):
repositioning, some shiftingstrategic shifting, I guess of
fleets over the next certainlysix months.
I also want to talk to the ghosttown narrative, and I've seen
Dr Salmer Cagliano looking atthis as well.
I've seen some headlines ormaybe they weren't even
headlines, maybe they were justtweets or X posts or whatever
(20:29):
they are that US ports may beghost towns.
Us ports are still doing tradeRight.
There's certainly lesscongestion than especially
during the height of thepandemic.
There's certainly lesscongestion especially during the
height of the pandemic.
There's certainly less volumecoming in, but ships are still
arriving, terminals are stillmoving, cargo Trade is still
flowing.
I really am echoing SalMercacoliano's perspective here.
(20:50):
If you haven't taken a look atwhat's going on with shipping he
did an episode on our porchghost towns right now and he
also pointed to marinetrafficcomyou can actually see the vessel
movements and vessel calls.
They're not stopping.
They might be reducing, butthey're not stopping coming into
US ports.
So I think that we should beaccurate in our portrayal here
(21:12):
and not overly.
The accuracy of the informationis important and I think that
we'll also perhaps see somechanges over the next few months
that are going to change this.
But who knows, like reflagging,repositioning and aligning
(21:42):
assets with these federalpriorities coming out of the
United States, that maybe willhelp promote the US maritime
sector more broadly.
Story number four that was onlystory number three.
Story number four let's talkabout the budget for a second.
I'm not going to go too farinto it, but we have seen a
fiscal year 2026 budget proposedby the Trump administration,
2026 budget proposed by theTrump administration.
(22:03):
It includes a strong show ofsupport for port development but
also proposes surprising cutsto the Harbor Maintenance Trust
Fund.
So how it breaks down and, likeI said, we're not going to go
too far into it today with thiscaptain's log.
But what is funded?
Continue investment in the PIDP, the Port Infrastructure
Development Program, whichprovides grants to modernize
ports, improve throughput andexpand cargo capacity.
It also provides support fortraining shifts and maritime
(22:24):
academies aimed at strengtheningthe future maritime workforce.
But what was interesting andperhaps a little surprising, is
that the Harbor MaintenanceTrust Fund is lower than
expected, despite ongoing callsfrom port authorities, and
especially the AmericanAssociation of Port Authorities,
saying that Congress shouldfully utilize the collected
Harbor Maintenance Tax revenues.
The Harbor Maintenance TrustFund is funded by a fee this
(22:48):
Harbor Maintenance Tax onimported goods and is supposed
to be paying for dredging,harbor deepening and maintenance
right Harbor maintenance at USports.
Cutting that fund candisproportionately affect
smaller regional ports that relyon dredging to remain navigable
.
I don't necessarily think it'sfor a lack of desire to dredge
that that fund has beenunderutilized, and so I hope
(23:11):
that that gets a little bit moreattention and we figure out the
resource mismatch and not justcut the program.
But there we are.
You know, those are theproposals coming out of the
budget, out of the president'soffice.
Story number five this is wherewe get into the deadlines that I
want you to pay attention tothe Federal Maritime Commission
chokepoint investigation.
(23:31):
It is closing up very soon.
Public comments are due onMonday, monday May 13th.
Monday, may 13th Today's Friday, the 9th, monday May 13th, is
when you have your opportunityto submit comments.
There have only been threecomments submitted.
The areas under review includePanama Canal, suez Canal,
Northern Sea Route, malaccaStrait, the Singapore Strait,
(23:54):
strait of Gibraltar and theIngalls Channel.
Why this matters?
These choke points are vital toUS trade.
The FMC is investigatingwhether foreign policies at
these passages arediscriminating against US cargo
or carriers or US interests.
So what can the FMC do of thisdiscrimination against
(24:33):
unfavorable shipping conditions?
They could also bar access toUS ports for non-compliant
carriers or non-compliant flagoperators.
So if they were to findsomething wrong with the way
Panama is conducting the PanamaCanal, they could potentially
turn away Panamanian flagvessels, which would be 18 to 20
percent of the world's flagfleet.
We are just starting to get ahandle on the USTR section 301
(24:57):
proposals, and then now thismight line up on top of that.
So we'll see right, we'll see.
But this is important.
You should be paying attentionto this.
You should be making plans tosubmit comments.
They are due by May 13th.
You can make them onregulationsgov, but go find this
on the FMC's website.
(25:18):
If you want a quick primer, Ido have a course on this
Maritime Chokepoint onthemaritimeprofessorcom.
Take a look If you want justkind of a quick and dirty
version of what's going on.
What are they looking at, whyare they looking at it and how
this is going to impacteverybody.
Take a look atthemaritimeprofessorcom.
But, above everything else, gotake a look at this actual
(25:38):
proposal.
May 13th, this is theopportunity to have your voice
heard, the whole industry, tohave our voice heard.
You're going to miss yourchance if you don't get your
comments in by May 13th byMonday Story number six.
This one's just kind of a funone.
Let's head to the Midwest forthis one Invasive carp, laser
barriers and unlikely alliancesin the Great Lakes.
(25:59):
In the Midwest we have.
Ecological concern is creatingsome unlikely but constructive
political collaboration.
You may have seen, in April,governor Gretchen Whitmer of
Michigan recently met withPresident Trump to discuss the
future of the Brandon Road Lockand Dam Project, which is a
critical barrier that couldprevent invasive Asian carp from
entering Lake Michigan and, byextension, the entire Great
(26:22):
Lakes ecosystem.
So what's the concern here?
Asian carp, the wildest species.
It's incredibly invasive.
What they do is if you are outfishing and you have just a
motor on the back of your vesselright Of course, you're just
out fishing on a fishing boatthey like dive, bomb your boat.
They will just jump out of thewater and will hit you while
(26:44):
you're fishing.
Now, that's not even the worstof what they do, but that's
certainly the most disruptive.
If you're a fisherman, lookwell.
Partially most disruptivebecause they could out-compete
native fish.
They disrupt commercial andsport fishing and they just
throw an overall wrench into theregion's $7 billion maritime
and freshwater economy.
(27:04):
There are some wild things thathave been in place for quite a
while.
They have electric fields,there are sound deterrents and
tests.
There are even laser beamsliteral laser beams in the water
that stop these Asian carp fromadvancing upstream.
They're mostly located inIllinois, chicago River and
(27:24):
elsewhere, but they stop, theyattempt to stop the aquatic
invasive species to coming in.
This isn't science fiction.
It's happening right now, justoutside Chicago.
Look, it's important to notesomething here, though.
Governor Whitmer one ofPresident Trump's most vocal
critics, I would say has foundcommon ground here, advocating
for full federal support toaccelerate construction
(27:46):
timelines and strengthen thisbarrier system, and President
Trump said in a press release orin his press briefing, that
this was something that he wasbehind, that it was a moment for
policy alignment, not focusedon the politics, but on
preserving a vital waterway thatmillions depend on rolling up
their sleeves to help.
Here there's a lot of there's alot of politics at play, and
(28:14):
certainly there's a lot ofpolitical consternation, but I
think the point here is, for themaritime issues, a good idea is
a good idea, and it seems likethis administration, and
certainly those supportingmaritime in this administration
want to hear from the maritimeindustry and want to hear
suggestions and good ideas inwhatever form that comes.
This is great news for Michigan.
All right, story number seven.
(28:35):
We're going to be closing upwith story number seven here.
Section 301 tariffs.
We've been talking about themperiodically today.
We've been talking about them alot over the past few months,
weeks, certainly since thatApril 17th new proposal out of
the USTR.
But one other thing that Iwanted to highlight from the
USTR April 17th proposal istheir proposed fees on
(28:57):
ship-to-shore cranes, chassisand other cargo handling
equipment.
So let's kind of revisit thisfor a second here.
United States TradeRepresentative proposed a
sweeping set of fees targetingvessels with China ties.
This was part of the broaderSection 301 investigation into
China's dominance of the globalmaritime supply chain.
(29:17):
So it was a million dollars perport call initially.
They've since reduced that.
They've separated it out toChina built vessels operated by
Chinese companies versus Chinabuilt vessels operated by
non-Chinese companies.
We see kind of a runway again,if you will, of when those fees
(29:40):
go into effect.
But there's a critical piecethat really isn't getting as
much attention that USTR in thatsame document under Annex 5, is
proposing additional duties ofup to 100% on Chinese origin
maritime equipment andcomponents and ship-to-shore
cranes.
And so what we're seeing is thedifferent categories of
(30:02):
intermodal chassis trailerframes that carry shipping
containers 20 to 100% I'm goingto repeat that 20 to 100% tariff
rate.
Chassis parts, key componentsused in container transport.
20 to 100% on that proposedrate fee.
And then also ship to shoregantry cranes.
So these are the higher lowprofile steel cranes used to
(30:25):
unload container ships.
It's the way that vessels andland meet.
It's the ship to shore craneright.
Ship to shore crane 100%proposed on this.
This is something that wasproposed previously under the
Biden administration and luckilygot stopped in its tracks.
This is significant becausethere just aren't other ship to
(30:48):
shore crane options.
So this is something that Ireally want to see the industry
pay attention to submit commentson.
So what's also included, right?
What's cargo handling equipment?
We're looking at mechanical anddigital infrastructure used at
marine terminals.
So cranes, spreaders, liftinggear, yard trucks, intermodal
chassis, terminal automationsystems, diagnostic software.
(31:10):
We're looking at chassiscontainers.
I mean, can you imagine if wehad 20 to 100% fee on containers
or chassis?
That would just add to theoverall consumer cost of
everything going in until theindustry was able to catch up
and until we were able to haveUS or non-China options and
(31:32):
certainly there are non-Chinaoptions on some of these other
marine handling equipment, butthe shift to shore cranes there
really aren't.
Look, this is important.
This is something to payattention to.
Important deadlines If you wantto testify at a public hearing,
the public hearing will be May19th.
The deadline to request totestify was actually yesterday,
(31:52):
may 8th.
It's okay, you know, if youstill want to testify, I'd say
submit it anyway.
See, let them say no.
Look, it was due yesterday,today's May 9th.
It was due May 8th.
But you can still have anopportunity to write comments.
So those are due May 19th.
So that's when that publichearing is going to be happening
(32:12):
.
So those are due May 19th.
So that's when that publichearing is going to be happening
.
You can still write commentsand then you have, seven days
after the hearing for rebuttalcomments.
This is important A significantescalation in US maritime trade
enforcement.
(32:34):
Your port, port operator,terminal equipment vendor,
chassis, pool manager, supplychain strategist, anything to do
with the maritime industry.
I mean, you can't just protestit.
You have to come up with betterideas, and to me it feels like
one of the better ideas is alittle bit more of a runway.
But if they don't hear fromanybody, they're not going to
know that the industry needs arunway here.
So we saw it with USTR initialproposals, where everybody came
together and had this greatbrainstorming session at the
(32:54):
hearing.
I think that this momentrequires a similar engagement
from the industry.
We have to be paying attentionto this.
Chassis containers, thelifeblood of supply chain, but
then also these ship-to-shorecranes.
So, look, we've covered a lotof things today in this episode
Federal nominations,shipbuilding legislation,
shifting carrier strategies,serious trade enforcement tools.
(33:16):
But the two deadlines you haveto pay attention to Write them
down as you're listening rightnow or do a Siri note May 13th,
the deadline to submit commentson the FMC's Maritime
Chokepoints Investigation.
That's Monday.
If your cargo, cargo vesseloperations, routing decisions
have ever been impacted by chokepoints access, or you've even
(33:44):
or you've seen uneven practicesat places like Panama Canal or
Suez Canal, you got to besubmitting comments.
This is a unique opportunity toinfluence and the FMC can move
quickly.
There might not be a proposalwith comments, this might just
be.
They take action.
So May 13th today's May 9th,may 13th, and the second date is
this May 19th date.
This is for the USTR proposedSection 301 tariffs on the
ship's short cranes, the chassisand the cargo handling
(34:05):
equipment and the containers.
May 19th Look, if you need abriefer on the maritime choke
points, I have an e-course.
I told you about that's on themaritimeprofessorcom.
Take a look at these two dates.
We're looking at may 19th andwe're looking at may 13th, both
very important.
Gotta submit the comments.
This is when you get your voiceheard in the maritime industry,
and we're seeing these commentsmake a difference.
(34:28):
These comments are making adifference, and so it's
important to stay engaged.
As always, the guidance here isgeneral, for educational
purposes only.
It is not legal advice.
If you need legal help, reachout to an attorney.
Contact an attorney Forconsulting, training or policy
insight, though.
You can find me at SquallStrategies or the Maritime
Professor.
Legal questions go to SquallStrategies.
(34:49):
General industry informationand insights go to the Maritime
Professor.
Subscribe to by Land and by Sea.
If you like these podcasts,watch the full episodes on the
YouTube page by Land and by Sea,presented by the Maritime
Professor.
Come learn more about whatTheMaritimeProfessorcom is
offering.
And until next time, I'm LaurenBegan, the Maritime Professor,
and you've just listened by Landand by Sea, see you next time.
I got On top To be.
When you see me, come Make someroom.
It's a good night.
Whoa, I'm living bold this iswhat it looks like.
(00:46):
I'm addicted to the world.
Whoa, whoa.
There's still a lot going on inthe world of ocean shipping and
maritime policy, and that isespecially true this month, and
(01:07):
we're only nine days into May.
There was a lot happening inApril.
We have the National MaritimeDay later this month.
I'm expecting more to come down, we'll see.
I've been keeping a close eyeon all of it, from new
leadership nominees andlegislation on the Hill to
proposed tariff on portequipment have you paid
attention to that?
Strategic moves for motioncarriers and a few under the
(01:30):
radar, but like very importantdeadlines that are coming up
very quickly, like next week,quickly to make note of.
There is a lot to talk about,so we're going to talk about it
today.
Hi, welcome back to, by Land andby Sea, an attorney breaking
down the weakened supply chainpresented by the Maritime
Professor me.
I'm Lauren Began, founder ofthe Maritime Professor and Small
(01:53):
Strategies, and I'm yourfavorite maritime attorney.
Join me every week as we walkthrough both ocean transport and
surface transport topics in thewild world of supply chain.
As always, the guidance here isgeneral and for educational
purposes only.
It should not be construed tobe legal advice, and there is no
attorney-client privilegecreated by this relationship.
Nope, no attorney-clientrelationship created by this
(02:15):
podcast.
It's been a while.
If you need an attorney,contact an attorney.
Usually we go through my topthree stories of the week, but
this week every story is a topstory, so let's get into it.
It's the captain's blog.
All right.
Story number one Steve Carmelhas been nominated as maritime
administrator.
Just a few weeks ago, we weretalking about a nominee to the
(02:38):
maritime administrator role.
There's a new nominee to themaritime administrator role.
This is taking over thatnomination that was presented
previously.
President Trump has nominatedSteve Carmel to head the US
Maritime Administration, marad,which would be replacing Brent
Sadler's nomination, which hasnow been withdrawn.
So let's talk a little bitabout Steve Carmel.
I'm still reading about him,learning about him, watching his
(03:01):
previous interviews andpresentations, but he brings a
lot of commercial shippingexperience, most recently with
Maersk Line Limited, which isthe US flag subsidiary of the
Global Ocean Carrier Maersk.
This is great.
This is great.
Look, he is a well-known voicein sea lift strategy and
maritime economics.
Anyways, his nomination to mesuggests perhaps a policy shift
(03:26):
toward commercial integration,and maybe not even a policy
shift, but like an intention.
There has been a lot, a lot ofvoices saying we needed more
commercial supply chain industryrepresentation at the highest
levels of leadership.
We have been getting a lot ofmilitary maritime discussion
(03:47):
right.
Of course, when it comes toshipbuilding, you get a lot of
defense readiness conversations,you get a lot of military
readiness conversations and atthe heart of it, that is what
this, all of this maritime focus, is about.
But it's also about supplychain and it's also about the
ecosystem of the supply chainand the commercial integration
(04:08):
and I think we're starting tosee that in some of the
supporting roles to theotherwise ocean shipping right.
We're seeing drayage providers,trucking providers, especially
on the West Coast, talking abouthow some of these tariff and
trade discussions and the lowerimport volumes, the impact that
that's having on them now andnot later in the month, when
(04:30):
it's being said that some of theimports might be shelves might
start to find themselves emptyby the end of the month or early
June.
That's what I've been hearingfrom some of the importers out
there.
But the thing is, if you don'thave the total integration on
the commercial side and on thefull supply chain understanding
of the ecosystem.
You wouldn't necessarily thinkabout all the intermodal pieces,
(04:52):
all of the drage providers andhow it might affect them earlier
than the actual end resultperson consumer going out there
to buy goods.
So all of this to say I'mexcited.
I think this is cool.
He may be especially wellpositioned to bridge that gap
between private and publicsectors here and a much needed
(05:12):
connection to the US basisglobal supply chain
vulnerabilities.
I think that this is great thathe has a I mean firsthand
experience of how oceanshipments work, having worked
for the US-like subsidiaryMariscaline Limited.
So Mara does oversee USMerchant Marines, strategic
Sealift and programs like theReady Reserve Force, which is
(05:33):
basically like emergency backupfleet for national crises.
Maritime is going to need athree-pronged approach here and
this is what I'm seeing kind ofas one of the themes right,
whenever I look at newadministrations I try to find
the themes among them and Ithink I probably mentioned this,
but I see a three-prongedapproach here that's needed for
revitalization effectiverevitalization in the maritime
(05:53):
sector.
We need the ships.
We've been hearing a lot aboutthe ships.
We have Ships Act.
We have the Executive Orderthat talks a lot about
shipbuilding.
We need US ships, but in orderto have ships that last, we need
mariners to operate those ships.
We're going to be seeing a lotmore coming out about mariners,
but I'm already seeing taxbreaks, I'm already seeing
public student loan forgivenessincentives.
(06:15):
I'm seeing things that arehelping the mariners themselves
and also the Maritime Academiesto offset some of the costs.
The new Ships Act talks aboutfuel subsidies for these giant,
beautiful vessels that theMaritime Academies are receiving
, but also now there's somefunding appropriated so that
they can actually use thoseships, sail those ships with
(06:36):
fuel subsidies.
That's a big piece.
But then the third part iscargo, and I think that's where
we're seeing some of thesetariff discussions talk about
moving and exemptions of theUSTR Section 301 waivers that
might be associated with thecargo coming on US flag vessels
(07:00):
companies or just some sort ofan intention to US owned
operated that's trying to impactthe movement or the behavior of
shippers trying to decide wheretheir cargo will go.
So it's the three prongedapproach it's the ships, it's
the mariners and it's the cargo.
And keep that in mind as theseproposals continue to trickle
(07:20):
out.
We're going to see an emphasison really trying to impact that
behavior, based on theshipbuilding, the manning of
those ships and where theshippers are choosing to ship
their goods.
All right, story number two.
So Ships for America Actreturns last week with
reinforcements.
So the Ships for America Act wasreintroduced into Congress and
it marked a pivotal step towardrevitalizing the US maritime
(07:42):
industry.
It kind of creates thelegislation that's supportive of
some of these otherwiseinitiatives floating around out
there.
This gives it a hook.
The bipartisan legislation aimsto expand the US flag fleet and
strengthen the nation'sshipbuilding capabilities.
So the original act wasintroduced December 2024.
The Ships for America Actsought to expand the US flag
fleet to 250 vessels by 2035,which would enhance strategic
(08:07):
sea lift capacity.
It also sought to rebuild theUS shipyard industrial base,
providing financial incentivesfor modernization and expansion
of US shipyards and just thebase in general.
This is interesting.
This is something that we sawin the executive order.
It establishes a maritimesecurity advisor within the
White House to coordinatemaritime policy across federal
agencies.
We already have somebody inthat role, but it's great to see
(08:30):
a maritime person that close tothe White House because, as
it's rightly being pointed out,maritime security is national
security.
We're also seeing somethinginteresting creating a maritime
security trust fund to supportongoing investments, maritime
infrastructure and workforcedevelopment.
There's also a MaritimeProsperity Zones that's being
introduced both in the executiveorder and a little bit more
(08:52):
explanation in the Ships forAmerica Act.
I think that both the MaritimeSecurity Trust Fund and this
Maritime Prosperity Zones aregoing to be really interesting.
I think that the MaritimeProsperity Zones is going to be
really interesting.
I think that the maritimeprosperity zones is going to be
probably something akin to Idon't know if you knew this, but
Massachusetts has designatedport areas, dpas.
Now, these are areas reservedfor maritime industrial uses.
(09:14):
Obviously, ships need ashoreline and, as the world is
developing condos alongshorelines, these DPAs, or
perhaps maritime prosperityzones, are going to be more
important.
But maritime prosperity zonesmight not only be along the
shoreline, they might also beelsewhere, and I'm thinking that
maybe transloading, maybethere's something there I don't
(09:37):
know, we'll see but something topay attention to.
I think that these new ideasare going to be a little bit
more all-encompassing and Ithink that there's going to be
some really there's going to besome great opportunity for
innovation and creative thinkingto be applied to Maritime
Security Trust Fund or MaritimeProsperity Zones.
We're also going to see enhancedmariner recruitment and
(09:58):
training, ensuring a robustpipeline of qualified personnel.
So that's not only from theoriginal act, but now the
reintroduction.
There are investment taxcredits in the reintroduction,
kind of an expansion of thosewe're going to see.
Or we are seeing strategiccommercial fleet program, so
establishing a program toincrease the US flag fleet to
250 vessels, like we saw,mandating that these ships be
(10:18):
built US built US flag fleet to250 vessels, like we saw,
mandating that these ships bebuilt US, built, us crude and
capable of serving nationaldefense interests.
And then also allowingtemporary use of foreign-built
ships with a phase-out by fiscalyear 2030.
Some of these reintroductions Ithink the new proposal out of
USTR Section 301 and now thisreintroduction of the Ships Act,
is allowing for a longer runway, because we obviously can't
(10:41):
just flip the switch, we can'tjust make vessels within a
week's notice it's going to takelonger than that and so
allowing temporary use offoreign built ships with a phase
out target here the target is2030, I think is a more
realistic approach and also kindof a more more realistic
(11:05):
approach and also kind of a morenuanced approach.
That's not quite exactly whatI'm trying to say, but a better
way of doing it because it'sgoing to allow for that
transition from the currentreliance on foreign built ships
to US built ships, once we getsome of the other components
going and we get that USshipbuilding industrial base
expanded.
We're also seeing cargopreference requirements included
in this reintroduction.
(11:25):
We're seeing those maritimeprosperity zones.
Like I said, this isintroducing zones offering
capital gains tax exemptions formaritime industrial investments
in designated regions.
But then also in thisreintroduction, a Ship America
office.
So establishing an officewithin MARAD, the Maritime
Administration, to promote theuse of US flag vessels by
commercial shippers.
And I think that this issomething that isn't necessarily
(11:48):
it's part of the promotionalobjectives of MARAD, but this is
something that I don't know ifcommercial shippers are taking
into consideration.
There are US flag companiesthat do international container
movement shipment.
You can actually use a US flagcompany.
Like I said, it might be asubsidiary of a larger global
(12:09):
ocean carrier, but there are USflag companies APL, marist Line
Limited that can actually shipcargo containers internationally
Something to look at.
And now, with the Ships Americaoffice, it's something that I
think we're going to see perhapsmore utilization of.
Also developing a verificationprogram for self-certification
(12:31):
industry standards under theShip America office.
So why does all this matter?
China's dominance in globalshipbuilding right, this is what
it is.
The Ships for America Act talksabout the dwindling US fleet.
This legislation representsthis comprehensive strategy and
a legislative hook to enhancethat national security by
ensuring reliable maritimelogistics in times of conflict.
(12:51):
That's kind of one of thethemes going behind why this is
all happening, why this iselevated to a top five issue of
the presidential office.
It's going to stimulateeconomic growth through
investment in shipyards andcreation of high paying jobs.
It's going to reduce dependencyon foreign vessels for
transporting critical goods and,particularly as we continually
(13:14):
see reducing dependency onChina-based movements and
China-based companies.
And it's also going to promoteinnovation in shipbuilding
maritime technology.
There were some pretty coolsections of both the Executive
Order and Ships for America Actthat talks about kind of this
R&D, this research anddevelopment, this new section of
(13:35):
maritime innovation, and Ithink that this will be cool.
I think in one of my pastepisodes I talked about we might
see the F-150, but then wemight also see the Cybertruck,
and I think that that'ssomething that this
administration seems to belooking at is, let's do a copy
and paste of just a paperweightthat floats, that carries
containers, but then let's alsobuild something that's cool.
(13:55):
That might be something that'slike yeah, I want to buy that
ship.
So we'll see.
We'll see where this goes, butI think that this is interesting
and Ships for America Act wasreintroduced last week.
Go take a look at it.
There's some new stuff in there.
Story number three Look,reports are saying that imports
are down, and certainly that'strue.
But I think that there's somesilver lining here.
(14:15):
I think that there's somesilver lining and I think that
there's some things happening,maybe a little bit more in the
background, that we're notnecessarily seeing, but I think
that these are important thingsto note.
Look, us imports are down.
There's reports saying 20 to 30percent declines year over year
.
I think it's important to notethat some of these are year over
(14:45):
year, month to month reviews,but then some of them are.
We also saw an increasehappening in January and
December when things were kindof front loading, knowing that
things were going to shift withthe new year and with the new
administration.
But still, 20 to 30% declinesis significant and, like I said,
it's starting to affect therest of the ecosystem.
But there might be some silverlinings into this softer market
and I think one of those is,with fewer boxes moving, I think
ocean carriers are potentiallyusing this time to reposition
(15:11):
their fleets.
So we've talked about the USTRSection 301 proposals and it
talks all about China-builtships, china-operated ships, but
it's the China-built ships thatI think is going to be part of
this repositioning and, with adowned demand right now, ocean
(15:31):
carriers can reposition theirvessels that are perhaps
Korean-based vessels orelsewhere-built vessels to be
the ones that call the US basedvessels, or elsewhere built
vessels to be the ones that callthe US to try to circumvent, to
try to get around getting anysort of penalties on tariffs
that are going to be assessedunder the USTR Section 301.
(15:53):
But then I think that also goesto some of the blank sailings
that we're seeing.
I've been hearing highernumbers of blank sailings, which
sometimes blank sailings can befor repositioning of vessels,
it can be for operational pauses, skipping ports for certain
reasons, but I also think thatthat might be related to some of
(16:14):
the repositioning of vesselsfor longer term strategic value.
Now, not only are we going tosee the ocean carrier
specifically perhapsrepositioning the vessel and you
can Google vessels if you.
You know you can even Googlethe Ever Given or whatever
vessel to find out.
You could probably find outpretty easily where that vessel
was built and then you'll knowwhat your exposure.
(16:35):
For the most part it's the samevessel on a specific trade
route.
You'll know with someregularity and with some
certainty once things settle outright where we have 180 day
pause.
So we're looking at you knowthe fall where we're going to
start seeing any of thosesection 301 penalties or fees
come in.
But what you can do is look atthe vessel that is shipped on,
(16:56):
which is usually informationincluded in some of your
shipping documents Google it andsee is that a vessel that is
going to get pinged by some ofthese USTR Section 301 tariffs
or not?
Something to just take an extrastep to look at?
I also think that something thatmight also be happening is we
(17:18):
might start seeing somereflagging of some of these
vessels into US registry or intoUS flag companies.
Like I said, we have MaerskLine Limited, which is a
subsidiary of the larger Maersk.
They might start to move someof their vessels over into
Maersk Line Limited to try toreflag it, because they're going
to see benefits to that.
We see that in the Section 301.
(17:39):
There's some waivers andvariances for US-owned,
us-operated companies.
I think that that's somethingthat we're going to see continue
because, like I said, it's athree-prong approach.
We have ships, we have marinersand we're going to need the
cargo to sustain it, becauseonce you inject the cash at the
beginning, it's going to need tosustain itself, and I think
(17:59):
that's where we've moved thecargo over onto these ships and
that's what's being attemptedhere.
So all I'm saying is I thinkthat there's some silver linings
to the downed demand.
Right now that's happening.
Repositioning of vessels,because I don't think the ocean
carriers want these fees anymore than anybody else does, and
certainly the fees willprobably get passed through, of
course, because it's notnecessarily the ocean carrier's
(18:22):
fault that the fees are beingassessed and they're only going
to be assessed for up to fivecalls per vessel.
So there is some reprieve fromall of these fees.
But pay attention right.
Knowing which vessel your cargois shipping on and knowing if
that vessel was where it wasbuilt might be important to
(18:42):
figure out.
Are you going to be subject tosome of these larger fees?
And then, like I said, some ofthese flags, some of these
vessels might end up gettingreflagged to US registry, and
then that might also provide anopportunity.
So what is reflagging?
Maybe I should stop there for asecond.
It's when a vessel that'sregistered under one country's
flag like Panama or Liberia orMarshall Islands those are
(19:05):
usually the flags of convenienceis switched to another like the
United States.
There's also just yesterdayreports and I haven't dove too
far into it so I didn't do aseparate story on it but the US
Virgin Islands might be anotherpotential flag that might come
under US flagging, but being USVirgin Islands, which would, I
(19:25):
guess, in theory have lessrestrictive requirements, and so
perhaps that might be the USoption for flags convenience.
But yeah, so doing sore-flagging vessels comes with
more regulatory requirements andcosts if it's under the US
directly, but it can also unlockaccess to US government cargo
and national security programslike the Maritime Security
(19:46):
Program, msp.
But I also think that if wehave a US flag of convenience,
there might be an opportunityfor some financial gains there.
So we'll see.
We'll see how all of thishappens.
But look, it's implemented.
These proposals can incentivizeoperators to rethink how and
where their vessels are flagged,maintained or even deployed,
and I think that we're going tobe seeing some reflagging, some
(20:07):
repositioning, some shiftingstrategic shifting, I guess of
fleets over the next certainlysix months.
I also want to talk to the ghosttown narrative, and I've seen
Dr Salmer Cagliano looking atthis as well.
I've seen some headlines ormaybe they weren't even
headlines, maybe they were justtweets or X posts or whatever
(20:29):
they are that US ports may beghost towns.
Us ports are still doing tradeRight.
There's certainly lesscongestion than especially
during the height of thepandemic.
There's certainly lesscongestion especially during the
height of the pandemic.
There's certainly less volumecoming in, but ships are still
arriving, terminals are stillmoving, cargo Trade is still
flowing.
I really am echoing SalMercacoliano's perspective here.
(20:50):
If you haven't taken a look atwhat's going on with shipping he
did an episode on our porchghost towns right now and he
also pointed to marinetrafficcomyou can actually see the vessel
movements and vessel calls.
They're not stopping.
They might be reducing, butthey're not stopping coming into
US ports.
So I think that we should beaccurate in our portrayal here
(21:12):
and not overly.
The accuracy of the informationis important and I think that
we'll also perhaps see somechanges over the next few months
that are going to change this.
But who knows, like reflagging,repositioning and aligning
(21:42):
assets with these federalpriorities coming out of the
United States, that maybe willhelp promote the US maritime
sector more broadly.
Story number four that was onlystory number three.
Story number four let's talkabout the budget for a second.
I'm not going to go too farinto it, but we have seen a
fiscal year 2026 budget proposedby the Trump administration,
2026 budget proposed by theTrump administration.
(22:03):
It includes a strong show ofsupport for port development but
also proposes surprising cutsto the Harbor Maintenance Trust
Fund.
So how it breaks down and, likeI said, we're not going to go
too far into it today with thiscaptain's log.
But what is funded?
Continue investment in the PIDP, the Port Infrastructure
Development Program, whichprovides grants to modernize
ports, improve throughput andexpand cargo capacity.
It also provides support fortraining shifts and maritime
(22:24):
academies aimed at strengtheningthe future maritime workforce.
But what was interesting andperhaps a little surprising, is
that the Harbor MaintenanceTrust Fund is lower than
expected, despite ongoing callsfrom port authorities, and
especially the AmericanAssociation of Port Authorities,
saying that Congress shouldfully utilize the collected
Harbor Maintenance Tax revenues.
The Harbor Maintenance TrustFund is funded by a fee this
(22:48):
Harbor Maintenance Tax onimported goods and is supposed
to be paying for dredging,harbor deepening and maintenance
right Harbor maintenance at USports.
Cutting that fund candisproportionately affect
smaller regional ports that relyon dredging to remain navigable
.
I don't necessarily think it'sfor a lack of desire to dredge
that that fund has beenunderutilized, and so I hope
(23:11):
that that gets a little bit moreattention and we figure out the
resource mismatch and not justcut the program.
But there we are.
You know, those are theproposals coming out of the
budget, out of the president'soffice.
Story number five this is wherewe get into the deadlines that I
want you to pay attention tothe Federal Maritime Commission
chokepoint investigation.
(23:31):
It is closing up very soon.
Public comments are due onMonday, monday May 13th.
Monday, may 13th Today's Friday, the 9th, monday May 13th, is
when you have your opportunityto submit comments.
There have only been threecomments submitted.
The areas under review includePanama Canal, suez Canal,
Northern Sea Route, malaccaStrait, the Singapore Strait,
(23:54):
strait of Gibraltar and theIngalls Channel.
Why this matters?
These choke points are vital toUS trade.
The FMC is investigatingwhether foreign policies at
these passages arediscriminating against US cargo
or carriers or US interests.
So what can the FMC do of thisdiscrimination against
(24:33):
unfavorable shipping conditions?
They could also bar access toUS ports for non-compliant
carriers or non-compliant flagoperators.
So if they were to findsomething wrong with the way
Panama is conducting the PanamaCanal, they could potentially
turn away Panamanian flagvessels, which would be 18 to 20
percent of the world's flagfleet.
We are just starting to get ahandle on the USTR section 301
(24:57):
proposals, and then now thismight line up on top of that.
So we'll see right, we'll see.
But this is important.
You should be paying attentionto this.
You should be making plans tosubmit comments.
They are due by May 13th.
You can make them onregulationsgov, but go find this
on the FMC's website.
(25:18):
If you want a quick primer, Ido have a course on this
Maritime Chokepoint onthemaritimeprofessorcom.
Take a look If you want justkind of a quick and dirty
version of what's going on.
What are they looking at, whyare they looking at it and how
this is going to impacteverybody.
Take a look atthemaritimeprofessorcom.
But, above everything else, gotake a look at this actual
(25:38):
proposal.
May 13th, this is theopportunity to have your voice
heard, the whole industry, tohave our voice heard.
You're going to miss yourchance if you don't get your
comments in by May 13th byMonday Story number six.
This one's just kind of a funone.
Let's head to the Midwest forthis one Invasive carp, laser
barriers and unlikely alliancesin the Great Lakes.
(25:59):
In the Midwest we have.
Ecological concern is creatingsome unlikely but constructive
political collaboration.
You may have seen, in April,governor Gretchen Whitmer of
Michigan recently met withPresident Trump to discuss the
future of the Brandon Road Lockand Dam Project, which is a
critical barrier that couldprevent invasive Asian carp from
entering Lake Michigan and, byextension, the entire Great
(26:22):
Lakes ecosystem.
So what's the concern here?
Asian carp, the wildest species.
It's incredibly invasive.
What they do is if you are outfishing and you have just a
motor on the back of your vesselright Of course, you're just
out fishing on a fishing boatthey like dive, bomb your boat.
They will just jump out of thewater and will hit you while
(26:44):
you're fishing.
Now, that's not even the worstof what they do, but that's
certainly the most disruptive.
If you're a fisherman, lookwell.
Partially most disruptivebecause they could out-compete
native fish.
They disrupt commercial andsport fishing and they just
throw an overall wrench into theregion's $7 billion maritime
and freshwater economy.
(27:04):
There are some wild things thathave been in place for quite a
while.
They have electric fields,there are sound deterrents and
tests.
There are even laser beamsliteral laser beams in the water
that stop these Asian carp fromadvancing upstream.
They're mostly located inIllinois, chicago River and
(27:24):
elsewhere, but they stop, theyattempt to stop the aquatic
invasive species to coming in.
This isn't science fiction.
It's happening right now, justoutside Chicago.
Look, it's important to notesomething here, though.
Governor Whitmer one ofPresident Trump's most vocal
critics, I would say has foundcommon ground here, advocating
for full federal support toaccelerate construction
(27:46):
timelines and strengthen thisbarrier system, and President
Trump said in a press release orin his press briefing, that
this was something that he wasbehind, that it was a moment for
policy alignment, not focusedon the politics, but on
preserving a vital waterway thatmillions depend on rolling up
their sleeves to help.
Here there's a lot of there's alot of politics at play, and
(28:14):
certainly there's a lot ofpolitical consternation, but I
think the point here is, for themaritime issues, a good idea is
a good idea, and it seems likethis administration, and
certainly those supportingmaritime in this administration
want to hear from the maritimeindustry and want to hear
suggestions and good ideas inwhatever form that comes.
This is great news for Michigan.
All right, story number seven.
(28:35):
We're going to be closing upwith story number seven here.
Section 301 tariffs.
We've been talking about themperiodically today.
We've been talking about them alot over the past few months,
weeks, certainly since thatApril 17th new proposal out of
the USTR.
But one other thing that Iwanted to highlight from the
USTR April 17th proposal istheir proposed fees on
(28:57):
ship-to-shore cranes, chassisand other cargo handling
equipment.
So let's kind of revisit thisfor a second here.
United States TradeRepresentative proposed a
sweeping set of fees targetingvessels with China ties.
This was part of the broaderSection 301 investigation into
China's dominance of the globalmaritime supply chain.
(29:17):
So it was a million dollars perport call initially.
They've since reduced that.
They've separated it out toChina built vessels operated by
Chinese companies versus Chinabuilt vessels operated by
non-Chinese companies.
We see kind of a runway again,if you will, of when those fees
(29:40):
go into effect.
But there's a critical piecethat really isn't getting as
much attention that USTR in thatsame document under Annex 5, is
proposing additional duties ofup to 100% on Chinese origin
maritime equipment andcomponents and ship-to-shore
cranes.
And so what we're seeing is thedifferent categories of
(30:02):
intermodal chassis trailerframes that carry shipping
containers 20 to 100% I'm goingto repeat that 20 to 100% tariff
rate.
Chassis parts, key componentsused in container transport.
20 to 100% on that proposedrate fee.
And then also ship to shoregantry cranes.
So these are the higher lowprofile steel cranes used to
(30:25):
unload container ships.
It's the way that vessels andland meet.
It's the ship to shore craneright.
Ship to shore crane 100%proposed on this.
This is something that wasproposed previously under the
Biden administration and luckilygot stopped in its tracks.
This is significant becausethere just aren't other ship to
(30:48):
shore crane options.
So this is something that Ireally want to see the industry
pay attention to submit commentson.
So what's also included, right?
What's cargo handling equipment?
We're looking at mechanical anddigital infrastructure used at
marine terminals.
So cranes, spreaders, liftinggear, yard trucks, intermodal
chassis, terminal automationsystems, diagnostic software.
(31:10):
We're looking at chassiscontainers.
I mean, can you imagine if wehad 20 to 100% fee on containers
or chassis?
That would just add to theoverall consumer cost of
everything going in until theindustry was able to catch up
and until we were able to haveUS or non-China options and
(31:32):
certainly there are non-Chinaoptions on some of these other
marine handling equipment, butthe shift to shore cranes there
really aren't.
Look, this is important.
This is something to payattention to.
Important deadlines If you wantto testify at a public hearing,
the public hearing will be May19th.
The deadline to request totestify was actually yesterday,
(31:52):
may 8th.
It's okay, you know, if youstill want to testify, I'd say
submit it anyway.
See, let them say no.
Look, it was due yesterday,today's May 9th.
It was due May 8th.
But you can still have anopportunity to write comments.
So those are due May 19th.
So that's when that publichearing is going to be happening
(32:12):
.
So those are due May 19th.
So that's when that publichearing is going to be happening
.
You can still write commentsand then you have, seven days
after the hearing for rebuttalcomments.
This is important A significantescalation in US maritime trade
enforcement.
(32:34):
Your port, port operator,terminal equipment vendor,
chassis, pool manager, supplychain strategist, anything to do
with the maritime industry.
I mean, you can't just protestit.
You have to come up with betterideas, and to me it feels like
one of the better ideas is alittle bit more of a runway.
But if they don't hear fromanybody, they're not going to
know that the industry needs arunway here.
So we saw it with USTR initialproposals, where everybody came
together and had this greatbrainstorming session at the
(32:54):
hearing.
I think that this momentrequires a similar engagement
from the industry.
We have to be paying attentionto this.
Chassis containers, thelifeblood of supply chain, but
then also these ship-to-shorecranes.
So, look, we've covered a lotof things today in this episode
Federal nominations,shipbuilding legislation,
shifting carrier strategies,serious trade enforcement tools.
(33:16):
But the two deadlines you haveto pay attention to Write them
down as you're listening rightnow or do a Siri note May 13th,
the deadline to submit commentson the FMC's Maritime
Chokepoints Investigation.
That's Monday.
If your cargo, cargo vesseloperations, routing decisions
have ever been impacted by chokepoints access, or you've even
(33:44):
or you've seen uneven practicesat places like Panama Canal or
Suez Canal, you got to besubmitting comments.
This is a unique opportunity toinfluence and the FMC can move
quickly.
There might not be a proposalwith comments, this might just
be.
They take action.
So May 13th today's May 9th,may 13th, and the second date is
this May 19th date.
This is for the USTR proposedSection 301 tariffs on the
ship's short cranes, the chassisand the cargo handling
(34:05):
equipment and the containers.
May 19th Look, if you need abriefer on the maritime choke
points, I have an e-course.
I told you about that's on themaritimeprofessorcom.
Take a look at these two dates.
We're looking at may 19th andwe're looking at may 13th, both
very important.
Gotta submit the comments.
This is when you get your voiceheard in the maritime industry,
and we're seeing these commentsmake a difference.
(34:28):
These comments are making adifference, and so it's
important to stay engaged.
As always, the guidance here isgeneral, for educational
purposes only.
It is not legal advice.
If you need legal help, reachout to an attorney.
Contact an attorney Forconsulting, training or policy
insight, though.
You can find me at SquallStrategies or the Maritime
Professor.
Legal questions go to SquallStrategies.
(34:49):
General industry informationand insights go to the Maritime
Professor.
Subscribe to by Land and by Sea.
If you like these podcasts,watch the full episodes on the
YouTube page by Land and by Sea,presented by the Maritime
Professor.
Come learn more about whatTheMaritimeProfessorcom is
offering.
And until next time, I'm LaurenBegan, the Maritime Professor,
and you've just listened by Landand by Sea, see you next time.
Popular Podcasts
On Purpose with Jay Shetty
I’m Jay Shetty host of On Purpose the worlds #1 Mental Health podcast and I’m so grateful you found us. I started this podcast 5 years ago to invite you into conversations and workshops that are designed to help make you happier, healthier and more healed. I believe that when you (yes you) feel seen, heard and understood you’re able to deal with relationship struggles, work challenges and life’s ups and downs with more ease and grace. I interview experts, celebrities, thought leaders and athletes so that we can grow our mindset, build better habits and uncover a side of them we’ve never seen before. New episodes every Monday and Friday. Your support means the world to me and I don’t take it for granted — click the follow button and leave a review to help us spread the love with On Purpose. I can’t wait for you to listen to your first or 500th episode!
Dateline NBC
Current and classic episodes, featuring compelling true-crime mysteries, powerful documentaries and in-depth investigations. Follow now to get the latest episodes of Dateline NBC completely free, or subscribe to Dateline Premium for ad-free listening and exclusive bonus content: DatelinePremium.com
Cold Case Files: Miami
Joyce Sapp, 76; Bryan Herrera, 16; and Laurance Webb, 32—three Miami residents whose lives were stolen in brutal, unsolved homicides. Cold Case Files: Miami follows award‑winning radio host and City of Miami Police reserve officer Enrique Santos as he partners with the department’s Cold Case Homicide Unit, determined family members, and the advocates who spend their lives fighting for justice for the victims who can no longer fight for themselves.