Episode Transcript
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the beat when you see me.
Come Make some room this Week inMaritime.
(01:00):
An advisory committee headsdown to Georgia, a court ruling
pair of of court rulingswhiplashes US importers
overnight and a new HarborSafety Committee drops anchor in
southern New England.
From legal limbo to localleadership, let's break it all
down.
Hi, welcome back to by Land andby Sea, an attorney breaking
down the weakened supply chainpresented by the Maritime
(01:21):
Professor me.
I'm Lauren Began, founder ofthe Maritime Professor, former
FMC International AffairsAttorney and also founder of
Squall Strategies.
By Landed, by Sea is your go-toresource for navigating the
regulatory side of global oceanshipping.
Me well, I'm your favoritemaritime attorney.
I'm here to walk you throughboth ocean transport and surface
transport topics and the wildworld of supply chain.
(01:44):
As always, this guidance hereis general and for educational
purposes only.
It should not be construed tobe legal advice and there is no
attorney-client privilegecreated by this podcast or by
this video.
If you need an attorney,contact an attorney.
This is Planned LanguageMaritime created so that anybody
, not just lawyers or industryinsiders, can understand what's
(02:04):
happening in the world ofshipping.
So let's dive into this week'sepisode because, as you know,
ocean shipping rules the world.
All right, story number oneNational Shipper Advisory
Committee is heading to Georgia.
Let's begin with the look ahead.
So next week the NationalShipper Advisory Committee, or
NSAC, is meeting June 4th inGarden City, georgia.
They've been meeting kind ofaround the country, different
(02:27):
corners.
Last meeting, I believe it wasin March during TPM JOC's
fantastic ocean shipping nerdcamp is what I was calling it,
but it is one of, if not thebest, ocean shipping conferences
in the world, certainly in theUS.
So that was the last timeNational Shipper Advisory
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Committee met.
Now they're going to be meetingin Georgia, just outside of the
Port of Savannah.
There will be a YouTube feedfor this that they're going to
be feeding out, so go to theYouTube page.
If you are not familiar withFMC's YouTube page, go check it
out.
They have some pretty greatrecordings both from the MTDI
but also the NSAC their ownhearings.
So just a little refresherright?
(03:10):
Nsac is the Federal AdvisoryCommittee to the Federal
Maritime Commission, the FMC.
Its creation was a major step.
It really created a way for USimporters and exporters to have
a formal, sustained voice inocean shipping policy and, as a
collective group, these USimporters and exporters, a way
(03:30):
to inform the FMC right, informthe FMC of current, real-time
things happening.
So currently it's 22 members onthe committee.
It's most evenly split betweenimporters and exporters and
includes representatives fromacross the supply chain.
They have agriculture, theyhave chemicals, they have retail
manufacturing.
These are all industry playerswho face supply chain pressures
firsthand and through thisplatform can shape federal
(03:54):
oversight in current events.
So the FMC doesn't have to taketheir recommendations or
doesn't have to take their input, but certainly it's a fantastic
way to engage in thatconversation, to have the
industry have an availableresource or an available open
line of communication throughthis Federal Advisory Committee.
A quick note on Federal AdvisoryCommittee.
(04:15):
So the Federal AdvisoryCommittees exist across
government and play a crucialrole in shaping public policy.
These are formal bodiesestablished under the Federal
Advisory Committee Act.
You'll often hear of thesecalled FACAs.
That's the Federal AdvisoryCommittee Act.
That's kind of a general way ofcalling Federal Advisory
Committees FACAs Committee Act.
That's kind of a general way ofcalling federal advisory
committees, facas.
(04:35):
They provide structured,ongoing advice from outside
experts, industry leaders,academics, labor representatives
and community stakeholders ingeneral across the federal
government.
These federal advisorycommittees in general do not
make laws or regulations but aredesigned to kind of inject
frontline expertise into thefederal decision-making process.
They help ensure that thepeople affected by the policy
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are part of that conversationand most times, hopefully in an
early stage of those discussions.
So, whether it's port operations, safety planning, environmental
regulation, trade, logistics,advisory committees across all
areas of federal government, butcertainly those are probably
the areas that affect us themost.
Like NSAC, like the NationalShipper Advisory Committees,
these advisory committees createand provide credibility,
(05:19):
accountability and real-worldgrounding to federal agencies
that otherwise operate at moreof a distance.
Right, having these open linesof communication is so fantastic
for any industry, butespecially the shipper group.
Right?
I mean we have importers,exporters, on this National
Shipper Advisory.
So what's happening?
At NSAC's meeting on June 4ththe committee is going to
recognize newly appointed memberrepresentatives, but they're
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also going to be hearing updatesfrom three of their key
subcommittees, which includeData Visibility, where they've
been focusing on cargo trackingsystem, interoperability and
transparency.
The Fees and SurchargesSubcommittee, which addresses
detention, demerge and relatedcommercial charges.
And the best practicescommittee, which is sharing
operational strategies toimprove flow, reduce delays and
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build resilience.
The overall committee is alsogoing to be reviewing findings
from a refusal to deal workinggroup, which is analyzing market
access concerns, particularlyfor smaller exporters who have
struggled to get space onvessels or to receive responses
from carriers.
That's what that refusal todeal working group is.
They're also going to belooking at delivering industry
updates from both the import andthe export communities.
(06:23):
And this one's kind ofinteresting they're going to be
discussing a recommendation toestablish an ocean carrier
advisory committee.
Now, this last item is somethingthat's been talked about for
years.
It was first proposed formallyby Commissioner Rebecca Dye when
she was working on her factfindings.
I believe it was in both factfinding 29 and 30, certainly in
(06:44):
29.
Yeah, go take a look.
But that's where this idea, Ithink, first came up, this Ocean
Carrier Advisory Committee.
So the idea is to create astructured forum for ocean
carriers parallel to the NSAC.
Right, if we have the shippers,we probably should have the
carriers also part of thosediscussions.
It would allow carriers toengage with the FMC in a more
formalized, transparent way.
(07:05):
There certainly is engagementnow between FMC and the ocean
carriers, but this would createkind of that you can peek behind
the curtain thing, right, butthis would create kind of that
you can peek behind the curtainthing right that anytime you get
this advisory committee, theirfull meetings are public and
streamed out.
So that would be a reallywonderful way to see a little
bit more of the discussion, theconversation between ocean
(07:26):
carrier side of things and theFMC.
So why this matters thiscommittee is sharing real-time
concerns from the industry.
Like I said, that's kind ofwhat FACAs do, but this is great
that it's now available underthe FMC because the NSAC is new.
They talk about topics thatfall squarely within the FMC's
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jurisdiction, like detention anddemurrage, data visibility and
carrier conduct.
It's a fantastic way for theindustry to engage directly with
the agency, bringingoperational issues and policy
recommendations to the surfaceearly, right Early, that we want
to make sure that theseconversations are being had
early as the FMC navigates theirdecisions, ultimately in any of
the dockets that they have infront of them all the lawsuits
(08:07):
that are kind of currentlypending, but also regulations.
We're in a deregulatory period,right, we've talked about this
before.
Under the new Trumpadministration Former Trump
Trump 1, had a for every one newregulation, you had to repeal
two government actions orregulations.
Now, the current advice is forevery one new, you have to
(08:28):
repeal 10.
So we're not going to be seeinga lot of new regulations coming
out from really any agency.
But, as they are discussingguidance, there are certainly a
few regs that they do have toget out, like the charge
complaints formal process.
But it's so important to havethese FACAs and especially the
(08:48):
National Shipper AdvisoryCommittee.
This meeting, and really alltheir meetings, can help lay the
groundwork for where the FMCgoes by having this ongoing
dialogue with the industry.
All right.
Story number two this one I'mnot going to talk too much about
.
It is still very fresh.
I wanted to bring it to yourattention but I didn't want to
go too far into it.
(09:09):
So in basically the span of 24hours, us importers are getting
whiplash right.
So an appeals court temporarilyreinstates tariffs amid ongoing
legal uncertainty.
So on May 29th, the US Court ofAppeals for the Federal Circuit
reinstated Trump-era tariffsthat had just been struck down
the day before.
The day before.
(09:30):
So, on the 28th, was a rulingissued by the US Court of
International Trade and they haddeclared these tariffs
unconstitutional under theInternational Emergency
Economics Powers Act.
So the IEEPA you might beseeing that kind of floating
around LinkedIn in the past 48hours, really but IEPA, the
International EmergencyEconomics Powers Act that these
(09:52):
tariffs were squarely situatedon, or the justification
provided for the tariffs.
So now, with the appeal inmotion, right, so we had the US
Court of International Tradesaying unconstitutional and then
(10:18):
we had a US Court of Appealsfor the Federal Circuit saying
it's back.
So that's where we're at.
It looks like, as of right now,the tariffs are back on
temporarily, and I say all ofthis with caution because I'm
not really sure where it's allgoing, right?
Here's the thing.
From what I understand and Ihave to dive into these a little
bit further it looks like theappeals court didn't fully
explain the stay, the reinstatedTrump tariffs so we're a little
(10:41):
bit in legal limbo, and whatthis basically means is the
importers are stuck waiting forthe answers.
Right, so a 10% across theboard tariff and elevated rates
on certain countries are back ineffect.
That's what is at issue here,as I understand it.
Again, very fluid stuff.
Importers don't know if they'llhave to pay retroactively or
whether refunds might followright, because these have been
(11:03):
already in effect and now thecourt is saying the US Court of
International Trade saidunconstitutional, but now the
federal court for US Court ofAppeals is saying it's fine,
it's back in.
There's a lot of questions onwhat this means and that's why,
like I said, I don't want to gotoo far into the specifics.
I highly recommend that youconsult an attorney specifically
(11:24):
on your specific issue.
There are trade tariffattorneys out there.
Just like I'm an ocean shipping, global ocean shipping attorney
.
There are trade and tariffattorneys out there that are
fantastic.
Look, it looks like we're notgoing to get much clarity until
June 9th.
Unfortunately, a full decisionwon't come until after a
briefing schedule that runsthrough June 9th.
So it's going to move quickly.
I mean, that's light speed.
(11:45):
10 days from now is light speed.
No-transcript Businessobviously likes certainty.
(12:21):
We're also up against rememberthe 90-day pause on.
At least part of them issupposed to be around early July
.
So I think that we're going tosee a very active June with
respect to the tariffs.
We'll see.
I'm going to keep watching it.
I'm not going to dive too farinto it until we get more
certainty, but I'll still bringthings to your attention, as I
always do.
I don't want to get ahead ofanything and I certainly don't
have a crystal ball.
(12:41):
So nobody does so if you arefollowing all of this, people
can have educated guesses, butthat's kind of what it is.
Until we get a little bit moreclarity from the courts, we're
stuck.
So make educated guesses, makeeducated decisions yourself.
Stay informed on what's goingon in the industry generally.
All right.
Story.
Number three this one's kind offun Harbor Safety Committee
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sets sail in southern NewEngland.
So this is some good news.
Rhode Island and SouthernMassachusetts Harbor Safety
Committee I have no idea whatthe acronym is going to be the
RISM Harbor Safety Committee.
The Rhode Island and SouthernMass held its first meeting this
week in Bristol, rhode Island.
This is fantastic.
The newly formed group bringstogether port authorities,
(13:24):
pilots, tug companies,environmental voices, coast
Guard.
Coast Guard stays closelyengaged with Harbor Safety
Committees, so their mission isto improve safety coordination
and environmental practices inregional harbors.
Harbor safety committees aresomething that are across the
country.
They're fantastic opportunitiesfor regional engagement with
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Coast Guard entities, for aidsto navigation, for safety and
security of the local regionalareas.
Look, so harbor safetycommittees were actually
formally recognized in the CoastGuard NAVIC.
So these are the NVIC.
This is the 0100.
It was issued in 2000.
So actually I think it wasright before 9-11.
(14:07):
I want to say it was rightaround that time.
So Harbor Safety Committeesformally recognized and created.
It was actually the same yearand the same NAVIC that the
Maritime Transportation SystemNational Advisory Committee was
created.
So that's the MTSNAC that Italk about.
That's where I proudly serve asthe vice chair of that federal
committee.
But we're not talking aboutMTSNAC, we're talking about
Harbor Safety Committees.
Harbor Safety Committees arepractical local partnerships.
(14:28):
Like I said, they solveregional specific problems like
anchorage, conflicts, incidentresponse.
That's a huge one.
So you get the engagement ofthe private area, industry
stakeholders engaging with theCoast Guard.
They also talk about harboraccess planning.
In the Massachusetts area we seea lot of designated port area
(14:50):
discussion, but also safety andsecurity right.
That's going to be the biggestissue.
They are active all over thecountry.
Lone Star down in Texas is oneof the most active.
We also have the Mass BayHarbor Safety Committee.
I'm on the board there.
But this new Rhode IslandSouthern Mass Harbor Safety
Committee is covering an areathat was previously not quite
(15:12):
covered and really needed itright.
I mean you have NarragansettBay that does have commercial
traffic and some large vesselscoming through there, right
alongside some of the fantasticsailing world's best sailing and
just consistent winds cominginto Narragansett Bay.
So these are all wonderfulthings moving forward to help
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with the overall safety of areaslike this.
Like I said, they solve theseregional problems and they
ensure local voices are part ofthat.
National Maritime Safety Goalsin the regional area.
They can be certainly taken upfrom the sectors and the
districts of the different CoastGuard areas.
But a big congratulations tothe Rhode Island and Southern
Mass Harbor Safety Committee ontheir successful launch.
(15:55):
This kind of local coordinationis essential for safe,
efficient and sustained portoperations.
If you are not already part ofa Harbor Safety Committee in
your area, I really highlysuggest you look one up.
They really are fantastic.
That's it for today.
It was a quick one right.
So we covered the NationalShipper Advisory Committee
heading to Georgia next week forJune 4th meeting.
(16:16):
We're still waiting to hearwhat's going on with these 10%
tariffs, kind of all the othertariffs associated with it.
And again, a greatcongratulations to the Rhode
Island and Southern Mass HarborSafety Committee officially
launching this weekstrengthening local coordination
on safety import practices.
If you liked this episode, besure to follow, subscribe and
leave a review.
Want to go deeper on thesetopics or bring this kind of
(16:36):
insight to your team?
Visit themaritimeprofessorcomto explore corporate trainings,
tailored briefings and on-demandwebinars, all designed to make
complex maritime regulationspractical and easy to understand
.
And if your organization needshelp navigating the legal or
strategic side of ocean shippingregulations, head over to
Squall Strategies.
That's where I provideconsulting services, regulatory
guidance, policy support forclients working directly with
(16:58):
the FMC and really across theglobal supply chain.
We take the specific nuances ofyour problems and turn them
into guidance.
As always, this podcast is foreducational purposes only and is
not legal advice.
This is not considered legaladvice.
If you need an attorney,contact an attorney.
Until next time, I'm LaurenBeacon, the Maritime Professor
(17:26):
and you've just listened to byLand and by Sea.
We'll see you next time.