June 27, 2025 • 31 mins
🚢 By Land and By Sea Podcast – an attorney breaking down the week in supply chain
🎙️ Captain’s Log – “Tariffs, Icebreakers, and the FMC Changing Guard”
🗓️ Week of June 27, 2025
The Maritime Professor® presents By Land and By Sea Podcast – a podcast breaking down the regulatory side of global shipping, hosted by maritime attorney Lauren Beagen (Founder of The Maritime Professor® and Squall Strategies®).
This week, I’m unpacking big shifts, bold plans, and looming deadlines in the world of maritime and trade:
🔹 Chairman Louis Sola departs the FMC – and leaves behind a strong reminder: U.S. shippers, speak up when facing unfair treatment abroad.
🔹 A new Crowley service connects Central America to Philly
🔹 Offshore mining interest heats up near American Samoa
🔹 U.S. eyes 15 Finnish icebreakers
🔹 Congress talks going “back to basics” on infrastructure – Representative Sam Graves opinion piece
🔹 July 9 tariff deadlines approach
🔹 A.P. Moller - Maersk launches AI customs tool for global tariff filings, etc. (Trade & Tariff Studio)
🔹 And the INTERNATIONAL LONGSHOREMENS ASSOCIATION surprises with labor leadership applauding Trump’s military move in Iran.
🎧 Tune in to hear the full breakdown in plain language Podcast Link
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⚠️ This content is for educational purposes only and should not be considered legal advice.
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:26):
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oh, oh, oh, I got On top.
When you see me, good night,whoa, I'm living.
Bold, this is what it lookslike.
I'm addicted.
How could it work?
Whoa, Whoa.
(00:58):
We have an FMC departure, a newdirect service connecting
Central America to Philadelphiaby a US company, a new offshore
mining development near AmericanSamoa, us possibly acquiring
Finnish icebreakers, A call tosimplify surface transportation,
looming tariff deadlines and areally cool new development out
(01:20):
of Maersk.
Stick around, there's a lot totalk about 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, founderof the Maritime Professor and
Squall Strategies, and I'm aformer FMC International Affairs
Attorney.
By Land and by Sea is yourfriendly guide to the regulatory
(01:41):
twists and turns of globalocean shipping.
Me, I'm your favorite Maritimeattorney, making sense of it all
, so you don't have to.
As always, the guidance isgeneral and for educational
purposes only.
It should not be construed tobe legal advice and there is no
attorney-client privilegecreated by this video or this
podcast.
If you need an attorney,contact an attorney.
This is plain language.
Maritime created so thatanybody, not just lawyers or
(02:04):
industry insiders, canunderstand what's happening in
the wild world of the supplychain.
Let's dive into this week'sepisode because, as you know,
ocean shipping moves the world.
All right, story number oneit's true, chairman Lusola has
officially announced that hewill conclude his term at the
Federal Maritime Commission onJune 30th.
Yes, that's in a few days fromnow.
(02:26):
He's ending his tenure thatbegan actually in 2018 with a
unanimous Senate confirmation,and he had a mission to
strengthen US maritimecompetitiveness and supply chain
security.
So in his farewell message,sola reflected and I want to
kind of read his actual wordsfrom the message If you go to
the FMC's website, you canactually see his departure
(02:46):
message, but it says June 30th,2025, marks the conclusion of my
tenure as chairman of the USFMC.
Serving our nation in thiscapacity has been the honor of a
lifetime.
I have had the privilege ofhelping safeguard the integrity
of the US maritime industry,bringing greater transparency to
port operations operations andoverseeing a supply chain that
moves more than $5 trillion ingoods annually.
(03:08):
Nominated by President Donald JTrump in 2018 and unanimously
confirmed by the US Senate, Ientered this role with clear
objectives to strengthenAmerican competitiveness,
protect our ports and supplychain from foreign influence and
bring lasting accountability tothe global shipping system.
So, through his own words,through his departure statement,
(03:30):
he said that he was proud of afew things that he had done, and
in this I mean it was sevenyears, but relatively shorter.
Well, I don't even want to sayshorter seven years.
Really, what happens these daysis FMC commissioners are on for
two five-year terms, so 10years.
So seven out of 10 years is notbad.
That's a long time.
(03:51):
During that time, he led FactFinding 30, which was an
investigation on what commercialmeasures passenger cruise lines
could adopt to mitigateCOVID-19 impacts.
He worked, in his own words,tirelessly during the post-COVID
supply chain crisis, helpingaddress widespread logistics
disruptions.
In his own words, he said hefor the deflagging of some of
these sanctioned vessels, andthis is actually an ongoing
(04:31):
investigation that's still openfor comment.
It's going to be open forcomment through August that
flags of convenience might beimpacting the unfavorable
shipping conditions or perhapscreating unfair shipping
conditions or supply chainconditions that relate to ocean
(04:52):
shipments the FMC wants to know.
Through this investigation healso helped spur the
investigation into the maritimechoke points which we're still
waiting on, kind of a next stepsfrom that.
But again, remember, the FMCmaritime choke points
investigation looked at sevendifferent choke points but
opened up the conversation toany choke points out there where
(05:14):
they were really looking for.
Are those choke points or arethose areas named in the
investigation?
Were any of the activitiesaround them raising to the level
of unfair or unfavorableshipping conditions that the FMC
could then use theirauthorities, the Foreign
Shipping Practices Act orSection 19 of the Merchant
(05:35):
Marine Act of 1920.
Both of those authorities thatthe FMC has gives them the
ability to take correctiveactions for unfavorable shipping
conditions or unfair shippingconditions.
That's why we saw a kind ofincrease in exposure, or I mean
it was brought to light rightUnder the leadership of Chairman
(05:57):
Sola.
Both of those authorities werebrought to light from some of
these investigations.
But these weren't the onlytimes that these investigations
or these authorities had beenused, but it felt like they were
being used in a little bit moreof a forward-leaning way and
also challenging the industry tospeak up if they were facing
unfair treatment overseas, sothat the FMC could take action
(06:19):
and that they could know whatwas going on.
So Solace Time at the Hel helmbrought increased visibility to
the FMC's global authority and,again, that was visibility.
They already had theseauthorities.
These were already authoritiesthat the FMC had been using
sparingly, admittedly, but usingthrough for years, especially
in moments of crisis.
But look, chairman Sola focusedon not only commercial fairness
(06:42):
and energy futures, but also onenforcing sanctions and
challenging kind of opaqueinternational practices.
I guess I would say from themaritime choke points
investigation.
He was standing up fortransparency, supply chain
security and the US maritimesystem that would hopefully be,
I think you would probably see,a less vulnerable to foreign
influence or foreign creation ofunfavorable shipping editions.
(07:06):
So it seemed as though he waskind of telling US shippers US
interests.
So the FMC, remember, isresponsible for the US importer,
exporter and consumer,protecting the interests of the
US importer, exporter andconsumer.
And he was essentially kind ofsaying to the industry, their
stakeholders if you're facingunfair treatment overseas for
(07:28):
shipping related ocean movementof goods, say something.
The FMC can't take action ifthey don't know what's happening
.
And so having these twoauthorities on highlight, I
thought that this was such ainteresting new highlighting of
these authorities in ways thataligned with the
administration's themes of USAFirst, but also in ways that
(07:50):
we're trying to create morefavorable shipping conditions
overall and perhaps illuminatingunfavorable shipping conditions
that may have not quite had thestage, I guess I would say, to
be brought to light.
So the Maritime ChokepointsInvestigation closed up about a
month or two ago.
We still have this essentiallyflagged to convenience
(08:13):
investigation happening now, butboth of those are predicated on
the Foreign Shipping PracticesAct and also Section 19 of the
Merchant Marine Act of 1920.
Not new tools, but under Sola'sleadership they've been actively
used to push back oninternational practices that
potentially harm these USinterests.
I think Chairman Sola has donea fantastic job during his
leadership and during his tenureas a commissioner as well.
(08:34):
I'm so interested to see wherehe goes next.
I don't think that he's done byany means, but I'm interested
to see where he lands next.
I wish him well and I thinkhe's done a great job leading
the FMC.
So Crowley is launching itsfirst ever direct Central
America Philly route.
I'm bringing this up becausethis is a US ocean carrier
(08:55):
company and I think that it'simportant to highlight, since
there's a movement and a themeof US ocean carriers and US
companies being elevated underthe Trump administration.
I wanted to mention thisbecause I'm actually sometimes
asked do some of these UScompanies have international
service?
And they do, and so I wanted tobring this one up.
So Crowley is introducing a newmaritime service that directly
(09:17):
connects Central America withthe US East Coast via Port of
Philadelphia, and what'sinteresting here is also that
they're using new LNG-poweredvessels.
Right, we just talked aboutChairman Sola and almost
formerly Chairman Sola, butChairman Sola being a staunch
supporter of US LNG as amaritime fuel, and now here you
have a US company using newLNG-powered vessels.
(09:40):
They're saying that this willdeliver the fastest transit
times in the market, accordingto Rainier van Delden, who was
the VP of Commercial Operationsat Crowley Logistics.
Joc did a reporting on thisannouncement and they
highlighted how this route willserve both container and
refrigerated produce exportersand importers from Central
America's northern zone,including El Salvador, nicaragua
(10:02):
, guatemala and Honduras.
So perishables like bananas,pineapples, melons have
traditionally come throughperhaps maybe some of the more
southern ports, but this isinteresting having Philadelphia
kind of in the mix now alreadyleading as a refrigerated cargo
port with great cold storageinfrastructure and good access
to northeast population centers.
(10:23):
So this new service could helpreduce some of those inland
transit times or perhaps justincrease options, right?
So reefer volumes have beenrising.
Shippers are seeking speed tomarket.
This direct route could reallyhelp importers supplying
supermarket wholesalers and foodservice chains in the
Mid-Atlantic and the Northeast.
Basically, more direct, faster,cheaper, fresher service could
(10:48):
potentially be coming throughPhiladelphia via this US company
.
So we'll see.
But I wanted to highlight this,like I said, not only for the
LNG vessel, but also just tohighlight that, yes, these US
companies do serveinternationally.
As I understand it, I don'tthink that they put out all of
the vessels that are serving inthe service, but it might not
(11:09):
only be a US flag vessel in thisservice, but it is a US company
.
We talked about that a littlebit when we talked about the
port fees that were under theUSTR proposal that it changed
away from US flag only, and thenthere was kind of preference
for US company.
This is kind of one of thosesituations this might not be a
(11:29):
US flag vessel, but this is a UScompany.
All right.
Story number three Off.
This might not be a US flagvessel, but this is a US company
.
All right.
Story number three Offshoremineral exploration kicks off
near American Samoa.
Well, almost right.
So for the first time in over30 years, the US is reviewing
offshore mineral leases.
So BOEM, the Bureau of OceanEnergy Management, has started
the environmental review processfor the first time in almost 30
(11:50):
years, reviewing these offshoremineral leases in the Pacific,
specifically the American Samoa.
G-captain reported on this.
So these leases aim to supportexploration for critical
minerals, things like rare earthelements, nickel, cobalt.
These are things that we'vetalked about or heard talked
about in mainstream media news.
These critical minerals, rareearth minerals, kind of all this
(12:12):
stuff that's very valuable.
These are essential forbatteries, renewable energy,
tech, national defense systems,and so why?
The American Samoa, itssurrounding seabed, could host
these polymetallic nodules,which are rock formations rich
in valuable metals?
Boem is saying that it's justin the early stages, but it
signals kind of the shift in USstrategy and it's happening now
(12:36):
because global competition forcritical minerals is
intensifying, right, obviously,not many people probably were
talking much about it, and nowhere it is in mainstream media.
China does dominate the currentmarket.
As I understand it, westerncountries are looking for these
alternatives, us being one ofthem.
So domestic offshore mining,even in US territories, could
become part of that solution.
(12:57):
The US is exploring its ownundersea backyard for these
metals that power everything,like I said, from smartphones to
submarines.
It's still in the early days,but exploration of the seafloor
around our territories has beengoing on for a while.
We also have been exploringextended continental shelf.
So continental shelf is kind ofseafloor, but beyond.
(13:17):
That's been a project that wasled by the State Department.
These are not new things toknow that there are these
fantastic minerals, but it's afrom a scientific standpoint,
this is an interestingdevelopment.
I think that this is going tobe really interesting to see
what we can find there,especially if they really are
(13:40):
polymetallic nodules.
We have all sorts of rich,valuable minerals and metals
that are in these areas or, wehope, right, and so that's what
this first step is.
It's just the first step, earlystages, reviewing the
environmental impact, reviewingthe environmental review process
, reviewing mineral leasesgenerally, but we might find out
(14:01):
what we have around theAmerican Samoa pretty soon.
All right.
Story number four the US islooking to buy icebreakers from
Finland.
So we've talked abouticebreakers before.
The US has a very small supplyof ice breakers, but just this
week you may have seen in themainstream news President Trump
was at the NATO summit.
(14:22):
While he was there, heannounced G Captain's reporting
that he announced that the US isin talks to purchase up to 15
ice breakers from Finland 15.
And that would wildly increaseour icebreaking capacity.
This is according to G-Captain.
This would be a major leapforward for US polar capability.
(14:42):
So icebreakers obviously helpships navigate frozen waters,
especially in the Arctic.
We only the US only has a fewworking ones.
Russia, for kind of example,has over 30.
We have two major icebreakersthat I know of and it's
somewhere in that vicinity,right.
So why Finland?
(15:03):
Finland is one of the topicebreaker shipbuilders in the
world.
Buying from them could helpfast track American capabilities
.
Trump has said recently, Ibelieve in the past few months
well, it's only been a fewmonths, but in the past few
months he said that he wanted 30big icebreakers.
So this 15 icebreaker purchasewould be a fantastic leap
forward in our icebreakingcapacity in the US.
(15:24):
Here, as Arctic shipping routesare opening up, competition for
control is heating up.
Icebreakers means more accessright, more safety and more
presence in these sensitivewaters.
We are an Arctic nation.
We still have Alaska right.
We have Alaska as inclusion ofthe US into the Arctic.
So we obviously needicebreakers.
We need more access, moresafety and more presence in
(15:47):
these sensitive waters.
The US I can't I almost don'twant to say it too much, but I
can't say it enough.
It's short on icebreakers andthis deal with Finland really
might help us catch up beforethe Arctic really becomes the
place to be.
I mean, it is the place to be,but we need more icebreakers and
I'm going to keep watching tosee if this Finland deal goes
through.
15 icebreakers, that'sfantastic, all right.
(16:08):
Story.
Number five Congress.
We have an opinion piece writtenby Representative Sam Graves.
He's a Republican from Missouri.
He wrote an opinion piece inthe Washington Times.
He's the chairman of House T&ICommittee, so the House
Transportation andInfrastructure Committee and
cover I mean they cover theCoast Guard.
(16:31):
They cover roads, rail, bridges, pipelines, maritime policy,
coast Guard, mared and even theFMC.
So he's the chair of House TNI.
In this opinion piece he kindof laid out his plans for the
next surface transportation billand his message was pretty
simple.
He said it's time to get backto the basics.
He wants to get back tosimplifying highways, bridges,
(16:54):
rail and freight routes.
So who is Representative Graves?
He's a representative ofMissouri's 6th District and has
deep roots in transportation.
He's a 6th generation farmer,he's a pilot so transportation
and infrastructure makes senseand a small business owner.
He has chaired the T&ICommittee for the past what
would say about two years andthen previously led the
(17:15):
subcommittee on highways andtransit.
So the T&I committee, like Isaid, oversees a broad portfolio
, everything from the rails,roads, bridges, all of that.
But notably we've talked aboutthem before because they oversee
MERIT and the FMC's budget andalso Coast Guard.
This committee does play acritical role in how federal
dollars shape America'slogistics and infrastructure
backbone.
(17:36):
So why now?
Why is this an opinion piecethat he's entering into the
Washington Times right now?
Well, the current surfacetransportation law so this is
the surface transportation lawexpires September 30th, 2026.
So just about a year and somechange a year and a quarter, a
year and a half away.
But he says that the committeeis already starting to get to
(17:56):
work on that.
He's held several hearings thisyear and says that he's
listening to feedback fromacross the country.
So I want to pull a little bitof his actual words from his
opinion piece.
So he wrote in the next surfacetransportation reauthorization
bill we're going back to basicsAfter recent years of expanding
and creating more programs,spending money we don't have and
losing money to projectapproval and efficiencies.
(18:17):
We can and must focus on ourmost fundamental infrastructure
needs.
So Graves also marked theanniversary of the Federal Aid
Highway Act of 1956, signed byPresident Eisenhower, which was
a major milestone that createdthe US interstate highway system
.
This landmark legislationauthorized the construction of
41,000 miles of interstatehighway system.
Eisenhower strongly believedthat the Allied victory in World
(18:40):
War II was aided by Europe'ssophisticated highway system and
he recognized that aninterstate system was essential
for economic growth, nationaldefense and everyday efficient
transportation.
He added, when the Federal AidHighway Act of 1956 was signed
into law, it represented themost significant investment in
American transportation to dateand resulted in a monumental
achievement in Americanshipbuilding.
(19:00):
Excuse me, wouldn't that benice American building?
Since 1956, congress has beenresponsible for the regular
reauthorization of our surfacetransportation programs, which
is why shipbuilding didn't makesense there.
Responsible for the regularreauthorization of our surface
transportation programs, whichis why shipbuilding didn't make
sense there.
Responsible for the regularreauthorization of our surface
transportation programs.
Our limited federal resourcesshould always be focused on
(19:21):
moving people and goods safelyand efficiently.
So Graves emphasized stateflexibility, saying that local
leaders are in the best positionto judge their infrastructure
needs, especially in rural areaslike Missouri his district, he
argues too much federal red tapegets in the way.
He says we need to continue toempower states and limit federal
intrusion.
Basically, this is a call tofocus federal spending where it
makes the most impact fixingroads, bridges, freight
(19:44):
corridors.
It's a reminder that withoutstrong basics the entire supply
chain can stumble.
Graves is positioning this nextbill to be back to basics and I
think to me that feels likehe's signaling.
I mean, it might just be a nicething to say, but to me it
feels like he's signaling thatwe're going to streamline it,
make it simple, hopefully, buthe's going to make it so that
(20:05):
they're trying to reduceinefficiencies in getting those
federal dollars out into theoverall fixing of roads, bridges
and freight corridors.
It sounds like he's reallytrying to get that service
reauthorization back to basics.
So we'll see what it looks like.
We got just over a year beforewe're going to see a new vote on
that, hopefully before that.
But the next one, the last one,expires September 30th 2026.
(20:29):
So I'm glad to see that they'regetting to work, all right.
Story number six so tariffdeadlines right, don't forget,
july 9th is fast approaching.
Remember the 90-day pause onthe tariffs that are coming from
the Trump administration.
So, according to Bloomberg,bloomberg was reporting on this
(20:49):
pressure's building, obviouslyfor the Trump administration to
finalize multiple tradeagreements before the fast
approaching July 9th deadline.
This deadline is tied to theSection 301, tariffs.
But then also, which is theIEEPA, the International
Emergency Economic Powers Act,originally imposed in response
to unfair trade practices.
(21:09):
So these tariffs were initiallyset at 10%.
They could jump%, they couldjump, they could jump right.
That's what this pause istalking about.
There's a lot going on.
I'm not going to dive too farinto all of the specifics here,
but I want to bring yourattention to this July 9th
deadline.
I also want to say that I'veheard a little bit of mumblings
that that July 9th date might bepushed again if needed.
(21:34):
But I think that the pressureis also being factored into,
perhaps the negotiating on this.
So the Bloomberg articleactually goes through and talks
a little bit about each country.
So we have the European Union.
Both sides are discussing aprinciples agreement to extend
talks past July, but tensionsare rising.
President Trump has publiclyexpressed frustration and
threatened to walk away.
(21:55):
Let's see.
We're going to see whatcontinues to happen there.
India talks remain stuck overagricultural goods.
The US wants market access forgenetically modified crops.
India says no.
India in turn wants anexemption from US retaliatory
tariffs.
They were going to talk, as Iunderstand it, again about
(22:15):
During the G7, but then, becauseTrump had to leave early, that
that meeting unfortunatelydidn't happen.
So I think I can only imaginethey're still talking, right, we
also have Vietnam, so I'm notgoing.
Just may have had some breakingnews on that, but I don't like
(22:45):
to break the news, I like tojust reflect on it.
But I just saw an alert comethrough, and then Mexico, so
they break down, kind of allthese different things.
I think that this is a fantasticarticle.
Look, missing this July 9thdeadline could create tariff
hikes, and I don't think anybody.
I think that the pressure staysthere, but I don't think that
many people really want thattariff hike to happen, because
(23:08):
this is affecting the imports,right, and this is affecting
electronics, food imports andultimately could be passed along
to the end consumer.
But I think that right now whatwe're seeing is negotiation
happening out there in thepublic.
So it's the time to watch.
I thought we were going to seea lot more deals being done in
June.
I still think that the daysleading up to the 4th of July,
(23:31):
we could see some more tradedeals being announced.
Perhaps because of Trump's timein NATO this week, maybe
there's going to be a kind of aslew of new trade deals
announced next week early nextweek before July 4th.
We'll see right, but the tradeclock is ticking.
This July 9th deadline iscoming up.
(23:53):
I think negotiations are stilltense.
I guess I would say they'restill being worked out.
I see I hear a lot of positivemessaging, but the deadline is
still coming up, so we'll seeAll right.
Story number seven this one iscool.
This one is cool.
So Maersk has introduced a newAI-driven tool called Trade and
(24:13):
Tariff Studio and it's aimed atsimplifying the complex world of
customs clearance and tariffclassification for global cargo
owners.
I really encourage you to gotake a look at this.
I think that this just seemscool.
So a little bit of backgroundon this.
With rising trade tensions,shifting tariff schedules and
fragmented customs systemsacross countries, many shippers
are finding it harder to keep upand often end up overpaying,
(24:36):
potentially, or facing delays.
So, according to Maersk, evenmajor companies still use dozens
of disconnected brokers, whichcreates inefficiencies and
potentially missed opportunities.
So I'm going to read directlyfrom their announcement so,
after comprehensive pilots withlarge customers, the solution
will be available as from the28th of June.
So today's the 27th, so as oftomorrow, for cargo imported
(24:59):
into the US, the full rolloutcovering the rest of the world
is scheduled for August.
The product is best used bycargo owners as part of their
integrated logistic services byMaersk, but can also be
implemented as a standalonesolution.
So many this is continuing toread from their announcement
many, even globally activecompanies, still rely on up to
(25:19):
30 to 40 different local customsbrokers based in as many ports
or countries, resulting infragmented data, limited
visibility and unnecessarilypaid duties.
This decentralized approach isincreasingly unsustainable in a
world where tariff levels arenot only higher but also much
more volatile, as we know right,we just talked about that.
The announcement continues tosay much more volatile, as we
(25:40):
know right, we just talked aboutthat the announcement continues
to say.
Maersk data shows that 5% to 6%of tariffs are overpaid on
average due to lack ofcentralized data and
optimization.
20% of shipment delays arecaused by poor customs
preparation.
Only 50% to 55% of trade thatis eligible for existing free
trade agreements actually usethe respective FTAs and more
than 650 FTAs exist, but theyare complex and companies often
(26:02):
don't have the resources tofully understand all applying
details at origin anddestination.
Hence, many owners of globalsupply chains are leaving
significant savings untapped.
As a centralized intelligencesolution, maersk Trade and
Tariff Studio is a globalcustoms platform that combines
and again, I'm still reading offtheir announcement AI-powered
tariff engineering andoptimization, ensuring the
(26:24):
correct application of over6,000 product codes and 20,000
plus subcodes, upstreamcompliance risk screening,
helping customers avoid delays,detention and penalties,
real-time updates from datapartners, as well as Marist
Network of over 2,700 customsexperts across the globe, all
feeding tariff and regulationchanges into a unified system.
This is the end of the readingfrom their announcement.
(26:46):
The platform solution allowsthe integration of trusted local
brokers while still ensuring aglobal overview.
Doesn't that sound kind of cool?
I think this sounds cool.
So for companies managingcross-border shipments, tariff
classification errors andregulatory missteps are common
and expensive.
Tools like this aim to reducethose errors.
I think so right, I think so.
(27:06):
They're trying to automate thissystem.
They're trying to make iteasier for cargo owners to keep
up with customs requirements,especially as rules and tariffs
change more frequently.
It's a new option to watch forshippers managing complex
international flows.
It almost kind of feels likethey're giving global shippers
an AI-powered GPS for customspaperwork right.
It helps them avoid costlypotholes and perhaps detours in
(27:28):
the regulatory landscape, asthings are kind of moving around
quickly Instead of kind oftrying to comply at the last
second.
Maybe this is a helpfulintroduction of AI in this
overall customs landscape.
I think that this is cool.
I think this is worth checkingout.
I think we're going to see alot more AI integration that
(27:49):
will automate some of thoseotherwise kind of complex things
.
But worth checking out.
I think this has the potentialto be really cool.
We'll see All right.
Story number eight.
This is the last one.
So the ILA president praisedTrump's Iran strikes.
I only bring this up because Ithought that this was so
interesting, because we wentfrom October 1, the port strikes
(28:10):
.
Right, we have three days of aport strike.
We had a lot of uncertainty onwho was going to be elected
president and then when it wasTrump, it wasn't clear if the
ILA was going to kind of be onhis side or not even be on his
side, but how that was going toplay out for a January restart
(28:30):
after the pause of the laborstrike.
And so what we saw in Decemberwas, it seems, like the ILA and
President Trump actually I meanHarold Daggett, the president of
the ILA apparently they go wayback, right, that's what I had
been kind of understood as theygo way back, and so the ILA
(28:51):
typically kind of doesn't reallyget involved in a lot of these
geopolitical military typethings.
But look, the president of theILA this week publicly applauded
President Trump's recent strikeon Iran, I mean marking the
first time the ILA has formallyendorsed the US military action.
Just really interesting, and Idon't want to go into the
(29:14):
politics of all of this.
I'm not trying to talk aboutIran, but the ILA saying that
they support that.
The president of the ILApublicly applauding President
Trump.
They've come out and said thatthe ILA means I love America.
So they're kind of aligningthemselves with this pro-US
obviously, but Trump's theme ofpro-US their, their stance is
(29:40):
usually focused on labor rights,contracts, economic conditions,
but not usually foreign policy.
Look to me it feels like thisendorsement is sending a message
of port workers and maritimelabor, are signaling alignment,
I guess, with national securityactions, or maybe even just
support of the president as hecontinues to navigate I'm not
(30:02):
sure exactly right.
The union that typically caresabout the things that are
related to labor is now justhaving maybe a little comment on
political military.
I only bring it up because Ithought that it was interesting
and I thought that you mightfind it interesting as well.
Not a judgment either way.
(30:23):
I just thought that that was aninteresting change in typical
area that the ILA comments onright Endorsing US military
action.
There you have it.
I thought that it wasinteresting.
Well, so that concludes ourshow today.
If you like this episode, besure to follow, subscribe and
leave a review.
(30:43):
Want to go deeper or bring thiskind of insight to your team?
Visit themaritimeprofessorcomto explore corporate trainings,
tailored briefings, on-demandwebinars, online courses.
I'm going to continue to buildthose out.
If your organization needs helpnavigating the legal or
strategic side of ocean shippingregulations, head over to
Squall Strategies.
That's where I provide thoseconsulting services, regulatory
(31:03):
guidance and policy support forclients working directly with
the FMC and across global supplychain.
As always, this podcast is foreducational purposes only.
It is not legal advice.
If you need an attorney,contact an attorney, but until
next time, I'm Lauren Began, theMaritime Professor, and you've
just listened to by Land and bySea.
See you next time.
I'm Lauren Began, the MaritimeProfessor, and you've just
listened to by Land and by Sea.
See you next time.
Oh, oh, oh, oh, oh, oh, oh, oh, oh, oh, oh, oh, oh,
oh, oh, oh, oh, oh, oh, oh, oh,oh, oh, oh, oh, oh, oh, oh, oh,
oh, oh, oh, oh, oh, oh, oh, oh,oh, oh, oh, oh, oh, oh, oh, oh,
oh, oh, oh, oh, oh, oh, oh, oh,oh, oh, oh, oh, oh, oh, oh, oh,
oh, oh, oh, I got On top.
When you see me, good night,whoa, I'm living.
Bold, this is what it lookslike.
I'm addicted.
How could it work?
Whoa, Whoa.
(00:58):
We have an FMC departure, a newdirect service connecting
Central America to Philadelphiaby a US company, a new offshore
mining development near AmericanSamoa, us possibly acquiring
Finnish icebreakers, A call tosimplify surface transportation,
looming tariff deadlines and areally cool new development out
(01:20):
of Maersk.
Stick around, there's a lot totalk about 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, founderof the Maritime Professor and
Squall Strategies, and I'm aformer FMC International Affairs
Attorney.
By Land and by Sea is yourfriendly guide to the regulatory
(01:41):
twists and turns of globalocean shipping.
Me, I'm your favorite Maritimeattorney, making sense of it all
, so you don't have to.
As always, the guidance isgeneral and for educational
purposes only.
It should not be construed tobe legal advice and there is no
attorney-client privilegecreated by this video or this
podcast.
If you need an attorney,contact an attorney.
This is plain language.
Maritime created so thatanybody, not just lawyers or
(02:04):
industry insiders, canunderstand what's happening in
the wild world of the supplychain.
Let's dive into this week'sepisode because, as you know,
ocean shipping moves the world.
All right, story number oneit's true, chairman Lusola has
officially announced that hewill conclude his term at the
Federal Maritime Commission onJune 30th.
Yes, that's in a few days fromnow.
(02:26):
He's ending his tenure thatbegan actually in 2018 with a
unanimous Senate confirmation,and he had a mission to
strengthen US maritimecompetitiveness and supply chain
security.
So in his farewell message,sola reflected and I want to
kind of read his actual wordsfrom the message If you go to
the FMC's website, you canactually see his departure
(02:46):
message, but it says June 30th,2025, marks the conclusion of my
tenure as chairman of the USFMC.
Serving our nation in thiscapacity has been the honor of a
lifetime.
I have had the privilege ofhelping safeguard the integrity
of the US maritime industry,bringing greater transparency to
port operations operations andoverseeing a supply chain that
moves more than $5 trillion ingoods annually.
(03:08):
Nominated by President Donald JTrump in 2018 and unanimously
confirmed by the US Senate, Ientered this role with clear
objectives to strengthenAmerican competitiveness,
protect our ports and supplychain from foreign influence and
bring lasting accountability tothe global shipping system.
So, through his own words,through his departure statement,
(03:30):
he said that he was proud of afew things that he had done, and
in this I mean it was sevenyears, but relatively shorter.
Well, I don't even want to sayshorter seven years.
Really, what happens these daysis FMC commissioners are on for
two five-year terms, so 10years.
So seven out of 10 years is notbad.
That's a long time.
(03:51):
During that time, he led FactFinding 30, which was an
investigation on what commercialmeasures passenger cruise lines
could adopt to mitigateCOVID-19 impacts.
He worked, in his own words,tirelessly during the post-COVID
supply chain crisis, helpingaddress widespread logistics
disruptions.
In his own words, he said hefor the deflagging of some of
these sanctioned vessels, andthis is actually an ongoing
(04:31):
investigation that's still openfor comment.
It's going to be open forcomment through August that
flags of convenience might beimpacting the unfavorable
shipping conditions or perhapscreating unfair shipping
conditions or supply chainconditions that relate to ocean
(04:52):
shipments the FMC wants to know.
Through this investigation healso helped spur the
investigation into the maritimechoke points which we're still
waiting on, kind of a next stepsfrom that.
But again, remember, the FMCmaritime choke points
investigation looked at sevendifferent choke points but
opened up the conversation toany choke points out there where
(05:14):
they were really looking for.
Are those choke points or arethose areas named in the
investigation?
Were any of the activitiesaround them raising to the level
of unfair or unfavorableshipping conditions that the FMC
could then use theirauthorities, the Foreign
Shipping Practices Act orSection 19 of the Merchant
(05:35):
Marine Act of 1920.
Both of those authorities thatthe FMC has gives them the
ability to take correctiveactions for unfavorable shipping
conditions or unfair shippingconditions.
That's why we saw a kind ofincrease in exposure, or I mean
it was brought to light rightUnder the leadership of Chairman
(05:57):
Sola.
Both of those authorities werebrought to light from some of
these investigations.
But these weren't the onlytimes that these investigations
or these authorities had beenused, but it felt like they were
being used in a little bit moreof a forward-leaning way and
also challenging the industry tospeak up if they were facing
unfair treatment overseas, sothat the FMC could take action
(06:19):
and that they could know whatwas going on.
So Solace Time at the Hel helmbrought increased visibility to
the FMC's global authority and,again, that was visibility.
They already had theseauthorities.
These were already authoritiesthat the FMC had been using
sparingly, admittedly, but usingthrough for years, especially
in moments of crisis.
But look, chairman Sola focusedon not only commercial fairness
(06:42):
and energy futures, but also onenforcing sanctions and
challenging kind of opaqueinternational practices.
I guess I would say from themaritime choke points
investigation.
He was standing up fortransparency, supply chain
security and the US maritimesystem that would hopefully be,
I think you would probably see,a less vulnerable to foreign
influence or foreign creation ofunfavorable shipping editions.
(07:06):
So it seemed as though he waskind of telling US shippers US
interests.
So the FMC, remember, isresponsible for the US importer,
exporter and consumer,protecting the interests of the
US importer, exporter andconsumer.
And he was essentially kind ofsaying to the industry, their
stakeholders if you're facingunfair treatment overseas for
(07:28):
shipping related ocean movementof goods, say something.
The FMC can't take action ifthey don't know what's happening
.
And so having these twoauthorities on highlight, I
thought that this was such ainteresting new highlighting of
these authorities in ways thataligned with the
administration's themes of USAFirst, but also in ways that
(07:50):
we're trying to create morefavorable shipping conditions
overall and perhaps illuminatingunfavorable shipping conditions
that may have not quite had thestage, I guess I would say, to
be brought to light.
So the Maritime ChokepointsInvestigation closed up about a
month or two ago.
We still have this essentiallyflagged to convenience
(08:13):
investigation happening now, butboth of those are predicated on
the Foreign Shipping PracticesAct and also Section 19 of the
Merchant Marine Act of 1920.
Not new tools, but under Sola'sleadership they've been actively
used to push back oninternational practices that
potentially harm these USinterests.
I think Chairman Sola has donea fantastic job during his
leadership and during his tenureas a commissioner as well.
(08:34):
I'm so interested to see wherehe goes next.
I don't think that he's done byany means, but I'm interested
to see where he lands next.
I wish him well and I thinkhe's done a great job leading
the FMC.
So Crowley is launching itsfirst ever direct Central
America Philly route.
I'm bringing this up becausethis is a US ocean carrier
(08:55):
company and I think that it'simportant to highlight, since
there's a movement and a themeof US ocean carriers and US
companies being elevated underthe Trump administration.
I wanted to mention thisbecause I'm actually sometimes
asked do some of these UScompanies have international
service?
And they do, and so I wanted tobring this one up.
So Crowley is introducing a newmaritime service that directly
(09:17):
connects Central America withthe US East Coast via Port of
Philadelphia, and what'sinteresting here is also that
they're using new LNG-poweredvessels.
Right, we just talked aboutChairman Sola and almost
formerly Chairman Sola, butChairman Sola being a staunch
supporter of US LNG as amaritime fuel, and now here you
have a US company using newLNG-powered vessels.
(09:40):
They're saying that this willdeliver the fastest transit
times in the market, accordingto Rainier van Delden, who was
the VP of Commercial Operationsat Crowley Logistics.
Joc did a reporting on thisannouncement and they
highlighted how this route willserve both container and
refrigerated produce exportersand importers from Central
America's northern zone,including El Salvador, nicaragua
(10:02):
, guatemala and Honduras.
So perishables like bananas,pineapples, melons have
traditionally come throughperhaps maybe some of the more
southern ports, but this isinteresting having Philadelphia
kind of in the mix now alreadyleading as a refrigerated cargo
port with great cold storageinfrastructure and good access
to northeast population centers.
(10:23):
So this new service could helpreduce some of those inland
transit times or perhaps justincrease options, right?
So reefer volumes have beenrising.
Shippers are seeking speed tomarket.
This direct route could reallyhelp importers supplying
supermarket wholesalers and foodservice chains in the
Mid-Atlantic and the Northeast.
Basically, more direct, faster,cheaper, fresher service could
(10:48):
potentially be coming throughPhiladelphia via this US company
.
So we'll see.
But I wanted to highlight this,like I said, not only for the
LNG vessel, but also just tohighlight that, yes, these US
companies do serveinternationally.
As I understand it, I don'tthink that they put out all of
the vessels that are serving inthe service, but it might not
(11:09):
only be a US flag vessel in thisservice, but it is a US company
.
We talked about that a littlebit when we talked about the
port fees that were under theUSTR proposal that it changed
away from US flag only, and thenthere was kind of preference
for US company.
This is kind of one of thosesituations this might not be a
(11:29):
US flag vessel, but this is a UScompany.
All right.
Story number three Off.
This might not be a US flagvessel, but this is a US company
.
All right.
Story number three Offshoremineral exploration kicks off
near American Samoa.
Well, almost right.
So for the first time in over30 years, the US is reviewing
offshore mineral leases.
So BOEM, the Bureau of OceanEnergy Management, has started
the environmental review processfor the first time in almost 30
(11:50):
years, reviewing these offshoremineral leases in the Pacific,
specifically the American Samoa.
G-captain reported on this.
So these leases aim to supportexploration for critical
minerals, things like rare earthelements, nickel, cobalt.
These are things that we'vetalked about or heard talked
about in mainstream media news.
These critical minerals, rareearth minerals, kind of all this
(12:12):
stuff that's very valuable.
These are essential forbatteries, renewable energy,
tech, national defense systems,and so why?
The American Samoa, itssurrounding seabed, could host
these polymetallic nodules,which are rock formations rich
in valuable metals?
Boem is saying that it's justin the early stages, but it
signals kind of the shift in USstrategy and it's happening now
(12:36):
because global competition forcritical minerals is
intensifying, right, obviously,not many people probably were
talking much about it, and nowhere it is in mainstream media.
China does dominate the currentmarket.
As I understand it, westerncountries are looking for these
alternatives, us being one ofthem.
So domestic offshore mining,even in US territories, could
become part of that solution.
(12:57):
The US is exploring its ownundersea backyard for these
metals that power everything,like I said, from smartphones to
submarines.
It's still in the early days,but exploration of the seafloor
around our territories has beengoing on for a while.
We also have been exploringextended continental shelf.
So continental shelf is kind ofseafloor, but beyond.
(13:17):
That's been a project that wasled by the State Department.
These are not new things toknow that there are these
fantastic minerals, but it's afrom a scientific standpoint,
this is an interestingdevelopment.
I think that this is going tobe really interesting to see
what we can find there,especially if they really are
(13:40):
polymetallic nodules.
We have all sorts of rich,valuable minerals and metals
that are in these areas or, wehope, right, and so that's what
this first step is.
It's just the first step, earlystages, reviewing the
environmental impact, reviewingthe environmental review process
, reviewing mineral leasesgenerally, but we might find out
(14:01):
what we have around theAmerican Samoa pretty soon.
All right.
Story number four the US islooking to buy icebreakers from
Finland.
So we've talked abouticebreakers before.
The US has a very small supplyof ice breakers, but just this
week you may have seen in themainstream news President Trump
was at the NATO summit.
(14:22):
While he was there, heannounced G Captain's reporting
that he announced that the US isin talks to purchase up to 15
ice breakers from Finland 15.
And that would wildly increaseour icebreaking capacity.
This is according to G-Captain.
This would be a major leapforward for US polar capability.
(14:42):
So icebreakers obviously helpships navigate frozen waters,
especially in the Arctic.
We only the US only has a fewworking ones.
Russia, for kind of example,has over 30.
We have two major icebreakersthat I know of and it's
somewhere in that vicinity,right.
So why Finland?
(15:03):
Finland is one of the topicebreaker shipbuilders in the
world.
Buying from them could helpfast track American capabilities
.
Trump has said recently, Ibelieve in the past few months
well, it's only been a fewmonths, but in the past few
months he said that he wanted 30big icebreakers.
So this 15 icebreaker purchasewould be a fantastic leap
forward in our icebreakingcapacity in the US.
(15:24):
Here, as Arctic shipping routesare opening up, competition for
control is heating up.
Icebreakers means more accessright, more safety and more
presence in these sensitivewaters.
We are an Arctic nation.
We still have Alaska right.
We have Alaska as inclusion ofthe US into the Arctic.
So we obviously needicebreakers.
We need more access, moresafety and more presence in
(15:47):
these sensitive waters.
The US I can't I almost don'twant to say it too much, but I
can't say it enough.
It's short on icebreakers andthis deal with Finland really
might help us catch up beforethe Arctic really becomes the
place to be.
I mean, it is the place to be,but we need more icebreakers and
I'm going to keep watching tosee if this Finland deal goes
through.
15 icebreakers, that'sfantastic, all right.
(16:08):
Story.
Number five Congress.
We have an opinion piece writtenby Representative Sam Graves.
He's a Republican from Missouri.
He wrote an opinion piece inthe Washington Times.
He's the chairman of House T&ICommittee, so the House
Transportation andInfrastructure Committee and
cover I mean they cover theCoast Guard.
(16:31):
They cover roads, rail, bridges, pipelines, maritime policy,
coast Guard, mared and even theFMC.
So he's the chair of House TNI.
In this opinion piece he kindof laid out his plans for the
next surface transportation billand his message was pretty
simple.
He said it's time to get backto the basics.
He wants to get back tosimplifying highways, bridges,
(16:54):
rail and freight routes.
So who is Representative Graves?
He's a representative ofMissouri's 6th District and has
deep roots in transportation.
He's a 6th generation farmer,he's a pilot so transportation
and infrastructure makes senseand a small business owner.
He has chaired the T&ICommittee for the past what
would say about two years andthen previously led the
(17:15):
subcommittee on highways andtransit.
So the T&I committee, like Isaid, oversees a broad portfolio
, everything from the rails,roads, bridges, all of that.
But notably we've talked aboutthem before because they oversee
MERIT and the FMC's budget andalso Coast Guard.
This committee does play acritical role in how federal
dollars shape America'slogistics and infrastructure
backbone.
(17:36):
So why now?
Why is this an opinion piecethat he's entering into the
Washington Times right now?
Well, the current surfacetransportation law so this is
the surface transportation lawexpires September 30th, 2026.
So just about a year and somechange a year and a quarter, a
year and a half away.
But he says that the committeeis already starting to get to
(17:56):
work on that.
He's held several hearings thisyear and says that he's
listening to feedback fromacross the country.
So I want to pull a little bitof his actual words from his
opinion piece.
So he wrote in the next surfacetransportation reauthorization
bill we're going back to basicsAfter recent years of expanding
and creating more programs,spending money we don't have and
losing money to projectapproval and efficiencies.
(18:17):
We can and must focus on ourmost fundamental infrastructure
needs.
So Graves also marked theanniversary of the Federal Aid
Highway Act of 1956, signed byPresident Eisenhower, which was
a major milestone that createdthe US interstate highway system
.
This landmark legislationauthorized the construction of
41,000 miles of interstatehighway system.
Eisenhower strongly believedthat the Allied victory in World
(18:40):
War II was aided by Europe'ssophisticated highway system and
he recognized that aninterstate system was essential
for economic growth, nationaldefense and everyday efficient
transportation.
He added, when the Federal AidHighway Act of 1956 was signed
into law, it represented themost significant investment in
American transportation to dateand resulted in a monumental
achievement in Americanshipbuilding.
(19:00):
Excuse me, wouldn't that benice American building?
Since 1956, congress has beenresponsible for the regular
reauthorization of our surfacetransportation programs, which
is why shipbuilding didn't makesense there.
Responsible for the regularreauthorization of our surface
transportation programs, whichis why shipbuilding didn't make
sense there.
Responsible for the regularreauthorization of our surface
transportation programs.
Our limited federal resourcesshould always be focused on
(19:21):
moving people and goods safelyand efficiently.
So Graves emphasized stateflexibility, saying that local
leaders are in the best positionto judge their infrastructure
needs, especially in rural areaslike Missouri his district, he
argues too much federal red tapegets in the way.
He says we need to continue toempower states and limit federal
intrusion.
Basically, this is a call tofocus federal spending where it
makes the most impact fixingroads, bridges, freight
(19:44):
corridors.
It's a reminder that withoutstrong basics the entire supply
chain can stumble.
Graves is positioning this nextbill to be back to basics and I
think to me that feels likehe's signaling.
I mean, it might just be a nicething to say, but to me it
feels like he's signaling thatwe're going to streamline it,
make it simple, hopefully, buthe's going to make it so that
(20:05):
they're trying to reduceinefficiencies in getting those
federal dollars out into theoverall fixing of roads, bridges
and freight corridors.
It sounds like he's reallytrying to get that service
reauthorization back to basics.
So we'll see what it looks like.
We got just over a year beforewe're going to see a new vote on
that, hopefully before that.
But the next one, the last one,expires September 30th 2026.
(20:29):
So I'm glad to see that they'regetting to work, all right.
Story number six so tariffdeadlines right, don't forget,
july 9th is fast approaching.
Remember the 90-day pause onthe tariffs that are coming from
the Trump administration.
So, according to Bloomberg,bloomberg was reporting on this
(20:49):
pressure's building, obviouslyfor the Trump administration to
finalize multiple tradeagreements before the fast
approaching July 9th deadline.
This deadline is tied to theSection 301, tariffs.
But then also, which is theIEEPA, the International
Emergency Economic Powers Act,originally imposed in response
to unfair trade practices.
(21:09):
So these tariffs were initiallyset at 10%.
They could jump%, they couldjump, they could jump right.
That's what this pause istalking about.
There's a lot going on.
I'm not going to dive too farinto all of the specifics here,
but I want to bring yourattention to this July 9th
deadline.
I also want to say that I'veheard a little bit of mumblings
that that July 9th date might bepushed again if needed.
(21:34):
But I think that the pressureis also being factored into,
perhaps the negotiating on this.
So the Bloomberg articleactually goes through and talks
a little bit about each country.
So we have the European Union.
Both sides are discussing aprinciples agreement to extend
talks past July, but tensionsare rising.
President Trump has publiclyexpressed frustration and
threatened to walk away.
(21:55):
Let's see.
We're going to see whatcontinues to happen there.
India talks remain stuck overagricultural goods.
The US wants market access forgenetically modified crops.
India says no.
India in turn wants anexemption from US retaliatory
tariffs.
They were going to talk, as Iunderstand it, again about
(22:15):
During the G7, but then, becauseTrump had to leave early, that
that meeting unfortunatelydidn't happen.
So I think I can only imaginethey're still talking, right, we
also have Vietnam, so I'm notgoing.
Just may have had some breakingnews on that, but I don't like
(22:45):
to break the news, I like tojust reflect on it.
But I just saw an alert comethrough, and then Mexico, so
they break down, kind of allthese different things.
I think that this is a fantasticarticle.
Look, missing this July 9thdeadline could create tariff
hikes, and I don't think anybody.
I think that the pressure staysthere, but I don't think that
many people really want thattariff hike to happen, because
(23:08):
this is affecting the imports,right, and this is affecting
electronics, food imports andultimately could be passed along
to the end consumer.
But I think that right now whatwe're seeing is negotiation
happening out there in thepublic.
So it's the time to watch.
I thought we were going to seea lot more deals being done in
June.
I still think that the daysleading up to the 4th of July,
(23:31):
we could see some more tradedeals being announced.
Perhaps because of Trump's timein NATO this week, maybe
there's going to be a kind of aslew of new trade deals
announced next week early nextweek before July 4th.
We'll see right, but the tradeclock is ticking.
This July 9th deadline iscoming up.
(23:53):
I think negotiations are stilltense.
I guess I would say they'restill being worked out.
I see I hear a lot of positivemessaging, but the deadline is
still coming up, so we'll seeAll right.
Story number seven this one iscool.
This one is cool.
So Maersk has introduced a newAI-driven tool called Trade and
(24:13):
Tariff Studio and it's aimed atsimplifying the complex world of
customs clearance and tariffclassification for global cargo
owners.
I really encourage you to gotake a look at this.
I think that this just seemscool.
So a little bit of backgroundon this.
With rising trade tensions,shifting tariff schedules and
fragmented customs systemsacross countries, many shippers
are finding it harder to keep upand often end up overpaying,
(24:36):
potentially, or facing delays.
So, according to Maersk, evenmajor companies still use dozens
of disconnected brokers, whichcreates inefficiencies and
potentially missed opportunities.
So I'm going to read directlyfrom their announcement so,
after comprehensive pilots withlarge customers, the solution
will be available as from the28th of June.
So today's the 27th, so as oftomorrow, for cargo imported
(24:59):
into the US, the full rolloutcovering the rest of the world
is scheduled for August.
The product is best used bycargo owners as part of their
integrated logistic services byMaersk, but can also be
implemented as a standalonesolution.
So many this is continuing toread from their announcement
many, even globally activecompanies, still rely on up to
(25:19):
30 to 40 different local customsbrokers based in as many ports
or countries, resulting infragmented data, limited
visibility and unnecessarilypaid duties.
This decentralized approach isincreasingly unsustainable in a
world where tariff levels arenot only higher but also much
more volatile, as we know right,we just talked about that.
The announcement continues tosay much more volatile, as we
(25:40):
know right, we just talked aboutthat the announcement continues
to say.
Maersk data shows that 5% to 6%of tariffs are overpaid on
average due to lack ofcentralized data and
optimization.
20% of shipment delays arecaused by poor customs
preparation.
Only 50% to 55% of trade thatis eligible for existing free
trade agreements actually usethe respective FTAs and more
than 650 FTAs exist, but theyare complex and companies often
(26:02):
don't have the resources tofully understand all applying
details at origin anddestination.
Hence, many owners of globalsupply chains are leaving
significant savings untapped.
As a centralized intelligencesolution, maersk Trade and
Tariff Studio is a globalcustoms platform that combines
and again, I'm still reading offtheir announcement AI-powered
tariff engineering andoptimization, ensuring the
(26:24):
correct application of over6,000 product codes and 20,000
plus subcodes, upstreamcompliance risk screening,
helping customers avoid delays,detention and penalties,
real-time updates from datapartners, as well as Marist
Network of over 2,700 customsexperts across the globe, all
feeding tariff and regulationchanges into a unified system.
This is the end of the readingfrom their announcement.
(26:46):
The platform solution allowsthe integration of trusted local
brokers while still ensuring aglobal overview.
Doesn't that sound kind of cool?
I think this sounds cool.
So for companies managingcross-border shipments, tariff
classification errors andregulatory missteps are common
and expensive.
Tools like this aim to reducethose errors.
I think so right, I think so.
(27:06):
They're trying to automate thissystem.
They're trying to make iteasier for cargo owners to keep
up with customs requirements,especially as rules and tariffs
change more frequently.
It's a new option to watch forshippers managing complex
international flows.
It almost kind of feels likethey're giving global shippers
an AI-powered GPS for customspaperwork right.
It helps them avoid costlypotholes and perhaps detours in
(27:28):
the regulatory landscape, asthings are kind of moving around
quickly Instead of kind oftrying to comply at the last
second.
Maybe this is a helpfulintroduction of AI in this
overall customs landscape.
I think that this is cool.
I think this is worth checkingout.
I think we're going to see alot more AI integration that
(27:49):
will automate some of thoseotherwise kind of complex things
.
But worth checking out.
I think this has the potentialto be really cool.
We'll see All right.
Story number eight.
This is the last one.
So the ILA president praisedTrump's Iran strikes.
I only bring this up because Ithought that this was so
interesting, because we wentfrom October 1, the port strikes
(28:10):
.
Right, we have three days of aport strike.
We had a lot of uncertainty onwho was going to be elected
president and then when it wasTrump, it wasn't clear if the
ILA was going to kind of be onhis side or not even be on his
side, but how that was going toplay out for a January restart
(28:30):
after the pause of the laborstrike.
And so what we saw in Decemberwas, it seems, like the ILA and
President Trump actually I meanHarold Daggett, the president of
the ILA apparently they go wayback, right, that's what I had
been kind of understood as theygo way back, and so the ILA
(28:51):
typically kind of doesn't reallyget involved in a lot of these
geopolitical military typethings.
But look, the president of theILA this week publicly applauded
President Trump's recent strikeon Iran, I mean marking the
first time the ILA has formallyendorsed the US military action.
Just really interesting, and Idon't want to go into the
(29:14):
politics of all of this.
I'm not trying to talk aboutIran, but the ILA saying that
they support that.
The president of the ILApublicly applauding President
Trump.
They've come out and said thatthe ILA means I love America.
So they're kind of aligningthemselves with this pro-US
obviously, but Trump's theme ofpro-US their, their stance is
(29:40):
usually focused on labor rights,contracts, economic conditions,
but not usually foreign policy.
Look to me it feels like thisendorsement is sending a message
of port workers and maritimelabor, are signaling alignment,
I guess, with national securityactions, or maybe even just
support of the president as hecontinues to navigate I'm not
(30:02):
sure exactly right.
The union that typically caresabout the things that are
related to labor is now justhaving maybe a little comment on
political military.
I only bring it up because Ithought that it was interesting
and I thought that you mightfind it interesting as well.
Not a judgment either way.
(30:23):
I just thought that that was aninteresting change in typical
area that the ILA comments onright Endorsing US military
action.
There you have it.
I thought that it wasinteresting.
Well, so that concludes ourshow today.
If you like this episode, besure to follow, subscribe and
leave a review.
(30:43):
Want to go deeper or bring thiskind of insight to your team?
Visit themaritimeprofessorcomto explore corporate trainings,
tailored briefings, on-demandwebinars, online courses.
I'm going to continue to buildthose out.
If your organization needs helpnavigating the legal or
strategic side of ocean shippingregulations, head over to
Squall Strategies.
That's where I provide thoseconsulting services, regulatory
(31:03):
guidance and policy support forclients working directly with
the FMC and across global supplychain.
As always, this podcast is foreducational purposes only.
It is not legal advice.
If you need an attorney,contact an attorney, but until
next time, I'm Lauren Began, theMaritime Professor, and you've
just listened to by Land and bySea.
See you next time.
I'm Lauren Began, the MaritimeProfessor, and you've just
listened to by Land and by Sea.
See you next time.
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