October 10, 2025 • 21 mins
This week’s episode connects the dots between ports, policy, and technology — from new AI cargo safety tools to China’s retaliatory port fees and the U.S.–Finland icebreaker deal. Fresh off the AAPA Annual Convention in Quebec City, Lauren breaks down how smart strategy means more than new tech — it’s about translation, visibility, and human insight.
Expanded Description:
In this week’s episode of By Land and By Sea, The Maritime Professor®, Lauren Beagen, unpacks a fast-moving week in global shipping and supply chain strategy.
From AI scanning for dangerous goods to digital standards and tariff-driven behavior shifts, Lauren explores how data, design, and diplomacy are reshaping maritime operations — and why “smart strategy” means understanding the human element behind it all.
⚓ AI cargo safety: The National Cargo Bureau and World Shipping Council launched a partnership using artificial intelligence to detect misdeclared or dangerous goods before loading — a major leap in predictive safety.
💸 Tariff enforcement: The DOJ sentenced executives in the L.A. fashion district for evading $19M in customs duties — a reminder that data integrity equals compliance integrity.
🧩 DCSA digital standards: The Digital Container Shipping Association launched its new standard conformance page— and now you can check carrier adoption directly on their conformance grid, covering Track & Trace, eBLs, and booking data (https://dcsa.org/standard-conformance)
🇨🇳 China’s retaliatory port fees: A mirror response to U.S. Section 301 tariffs, China imposed special port fees on U.S.-linked ships, starting at 400 yuan per net ton and rising to 1,120 yuan by 2028.
🚢 Industry workarounds: Bloomberg via gCaptain reports carriers are reflagging and rerouting to minimize tariff exposure — a clear sign that the policy is influencing fleet behavior, just as intended.
❄️ U.S.–Finland icebreaker deal: The U.S. approved a major collaboration with Finland to build 11 new icebreakers, bolstering Arctic access, Great Lakes operations, and allied shipbuilding capacity.
From Quebec City to Washington, the message is clear:
The maritime world isn’t just collecting data — it’s learning to translate it into action.
🎧 Episode: When Trade Shifts, Data Steers: Lessons from Quebec City (AAPA Convention)
👉 Listen now at www.TheMaritimeProfessor.com/podcast
💡 Takeaway: The future of maritime strategy isn’t about more data — it’s about better translation, visibility, and connection.
⚠️ As always, this content is for educational purposes only and should not be considered legal advice. If you need an attorney, contact an attorney.
#m
🎙️ Thanks for tuning in to By Land and By Sea powered by The Maritime Professor®! If you enjoyed today’s episode, be sure to subscribe ⭐ and leave a review 📝 - it really helps others find the show.
📚 Want to go deeper? Check out our live webinars, on-demand e-courses, and our Just-in-Time Learning™ sessions -- short, plain-language lessons (30 minutes or less) built for supply chain pros who need quick clarity.
🚢 Looking for something tailored? We also provide custom corporate trainings designed to meet your team’s needs.
⚓ Learn more and explore past episodes at: www.TheMaritimeProfessor.com/podcast
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
SPEAKER_00 (00:00):
Ready to go.
You're listening to By Land andBy Sea, powered by the Maritime
Professor.
Global trade doesn't stop.
It swerves.
(00:21):
Tariff shifts, ships reroute,and technology keeps rewriting
the rules in a good way, though,I think.
This week I was in Quebec Cityfor the American Association of
Port Authorities annualconference.
This is where port leaders,regulators, and innovators come
together to tackle one bigquestion.
How can ports pick planstrategically when the world
(00:44):
refuses to sit still?
We're going to break it alldown.
This week is the Captain's Logedition.
There's a couple other storiesyou're not going to want to
miss.
Hi, welcome back to By Land andBy Sea, an attorney breaking
down the weekend supply chain,presented by me, the Maritime
Professor.
I'm Lauren Beegan, former FMCInternational Affairs Attorney
and founder of the MaritimeProfessor and Squall Strategies.
(01:05):
The guidance here is general andfor educational purposes only.
As always, if you need anattorney, contact an attorney.
Now, this is plain languagemaritime created so anybody, not
just lawyers or insiders, canunderstand what's happening in
shipping.
So let's dive in because as youknow, ocean shipping moves the
world.
All right.
(01:25):
Well, this week, like I said, Iwas at the American Association
of Port Authorities annualconference in Quebec City.
And I was honored to be asked tojoin a panel of incredibly
talented, intelligent colleaguesin the industry.
So it was our panel called SmartStrategies, Harnessing
Technology to Navigate GlobalTrade Shifts.
(01:46):
And it explored how data andtechnology are transforming port
planning, enabling leaders toforecast cargo trends, and
optimize vessel scheduling anddiversify commodity portfolios.
Our panel was led by former U.S.
Coast Guard Rear Admiral,retired John Mauger, Aaron
Chosova of the National CargoBureau, and Captain Adila Sheikh
(02:07):
of Polestar Global.
Now, Rear Admiral Malger led thediscussion and really rooted us
in the principle of how shareddata can strengthen maritime
safety and preparedness acrossagencies and across the supply
chain.
Aaron Chosova also emphasizedthe standardized cargo
declarations and digitaldocumentation documentations are
(02:30):
key to risk reductions.
And she explained that theNational Cargo Bureau had a new
partnership with the WorldShipping Council, which uses AI,
artificial intelligence, toidentify misdeclared or
dangerous cargo before it's evenloaded onto the vessel.
We had mentioned that a fewweeks ago on the show.
It was fantastic to hear hertalk about it.
I do want to point outmisdeclared cargo has caused
(02:54):
catastrophic shipboard fires andmajor supply chain disruptions.
This new AI technology, this newAI screening approach, really
adds a safety net at thisdocumentation level, protecting
crews, cargoes, andinfrastructure.
It's a fantastic thing thatNational Cargo Bureau and World
Shipping Council has rolled out.
(03:14):
Now, Captain Adil expanded onhow real-time vessel tracking
and data fusion are transformingoperational awareness with
Bullstar Global, giving portsand regulators a complete faster
picture of what's actuallyhappening across the maritime
domain.
From birth scheduling tocompliance and security, he
tackled it all.
He talked about it and all ofthe great things that they're
(03:35):
working on.
Now, during the panel, I alsoshared a point that I think
really resonated as we all rushtoward new technology.
And this isn't anything new thatI've never told you guys before.
This is something we come backto a lot.
As we're all rushing toward newtechnology, it's critical that
we assess that shiny new productthat you want to take off the
(03:56):
shelf.
You need to make sure that itactually speaks the language of
the industry.
Now, what does that mean?
Standards.
This is where standards come in,making sure all these digital
systems can actually talk toeach other.
Now, I've highlighted the workbefore, and I certainly did on
this panel, the work of CarlBensel, former FMC commissioner.
We had him on just a few weeks,actually just last week.
(04:17):
And we I've often talked aboutthe work that he did at the FMC,
the Maritime Transportation DataInitiative, MTDI.
Now, in this panel, I alsoemphasize that he identified the
DCSA, Digital Container ShippingAssociation, as the best
practice for standards in theindustry.
And like I said, if you're goingto take a new shiny product off
the shelf, make sure it canactually speak to everybody else
(04:38):
in the industry.
That's where DCSA comes in.
And they're continuing to leadthe effort to align these data
frameworks across carriers,ports, and shippers.
During that panel, I alsoemphasize that data itself needs
to be part of infrastructureplanning, right?
Just like dredging a channel orbuilding a new berth, ports
should be investing in thedigital foundations that make
(05:00):
those assets work smarter.
Because modern infrastructureisn't just concrete and cranes,
it's also code and connectivity.
But it certainly is concrete andcranes too.
So we need to make sure thatwe're focusing on that.
But we, this code andconnectivity, this data side of
things, it's important.
Now, during this panel, weexplored how ports are evolving
from physical gateways intoinformation ecosystems, where
(05:22):
transparency, timing, and datasharing drive both efficiency
and resilience.
Now, look, why does this allmatter?
The maritime world is shiftingfrom reactive to predictive.
The future of smart strategyisn't about having more data,
right?
It's not about having more.
It's about connecting,translating, and acting on the
data we do have.
And one takeaway that reallyrose to the surface, I thought,
(05:44):
from this panel was that wedon't have a data problem.
We have a data translation andvisibility problem.
And I think we're getting there.
We're getting there.
We're moving forward.
All right, story number two theLA fashion district case where
tariff evasion turns criminal.
So while we were discussing allof these things up in Quebec,
(06:05):
the United States Department ofJustice this week announced a
case that proves why all of thismatters, why you have to stay
aware of what you're doing.
And I don't think that this wasa matter of aware or not aware,
because this looks like it was abigger deal.
So this week the DOJ on theirwebsite announced LA Fashion
District wholesaler andexecutives sentenced for money
(06:25):
laundering and avoiding customsduties and taxes.
Now, two executives weresentenced for laundering money
and evading customs duties onapparel imports.
The announcement said thedefendants avoided customs
duties and tariffs by purchasinggarments from overseas
manufacturers, including fromChina, but then submitting false
(06:46):
information to the United StatesCustoms and Border Protection
CVP that understated the truevalue of the items being
imported into the United States.
Now, perhaps this wasn't just abookkeeping error, right?
Perhaps, and it seems that itwas, a deliberate terror fraud,
right?
Agencies are now cross-matchingcustoms, banking, and logistics
(07:08):
data to catch these mismatchedfilings instantly.
Now, why does this matter?
For importers, visibility equalscompliance.
When data doesn't align,enforcement follows.
This was an extreme example.
It seems to it seems that theyknew exactly what they were
doing here.
But with all of the tariff goingback and forth and some of the
(07:29):
questions that we had over thisfall, it I guess I bring this up
just to remind you, just stayvigilant.
Make sure that you are trying tocross-reference, finding out
from CBP directly.
They usually are, they've beenposting FAQs, frequently asked
questions on their website.
Make sure that you understandhow you're supposed to be
applying these tariffs, whetherit's the USTR Section 301 port
(07:52):
fees or whether it's actuallyyour goods coming into this
country.
Make sure that you understand itbecause there are significant
severe consequences.
Customs brokers also help youwith this.
Just make sure that you have theright people around you because
there's some criminal, this isthey have some court some jail
time from this DOJ announcement.
All right, story number three.
(08:12):
Let's take it back to DCSA.
So, like I said, on this panelin Quebec, I talked about how
important it was that any newtechnology we bring into ports
and terminals, shiny new toolsand dashboards can actually
speak the language of theindustry.
And look, DCSA actually had anannouncement this week.
They launched their new standardconformance program, which
confirms which ocean carriersare officially aligning with
(08:34):
these digital standards andwhich standards they're
adopting.
Now, this program mattersbecause DCSA is publishing these
standards, and now you can findout who's picking them up,
right?
Some of these standards mightinclude track and trace
visibility to booking data toelectronic bills of date, bills
of lading, excuse me, theoperational vessel schedule,
(08:55):
commercial vessel schedules.
These are all standards thatDCSA has available.
And now shippers can finally askthe carriers, which ones do you
use?
They don't even need to ask.
They can see on this chart.
So look, think of standards,right?
Why do standards matter?
I talk about standards all thetime.
I'm I'm pretty passionate aboutstandards being such a critical
piece of how we all move forwardin digitalization.
(09:17):
Think of it like email, right?
If you use Gmail, maybe I useOutlook, maybe our systems don't
match, but it doesn't matterbecause email has standards to
make sure that the message isstill delivered, right?
Imagine if that wasn't the case.
If every email provider hadtheir own rules, you could only
use messages from people in thesame system.
That's what container shippingkind of is, right?
(09:38):
We've been dealing with it foryears.
Each carrier port freightforwarder builds their own
software, perhaps formats, datacodes.
They're getting better at beingable to talk to each other, but
we shouldn't say they're gettingbetter.
We should just say they talk toeach other.
They're translated correctly.
They all receive and sendinformation and data cleanly
between platforms.
(09:59):
That's where these standardscome into place.
Track and trace standard, aperfect example.
And look, you can now go lookthis up on their conf their
conformance listing.
So when you're comparingcarriers or technology
providers, you can now asksmarter questions.
How are you implementing theDCSA standards?
Are you implementing the DCSAstandards?
And how does that improve thevisibility, speed, and accuracy
(10:21):
for the shipper?
Right?
It's no longer enough fortechnology to just be
innovative.
And that's why I keep saying,ask questions.
When you are taking those shinyplatforms off the shelf, ask
questions.
Are they compatible?
Right?
Just like how email changed howwe communicate globally.
These DCSA standards, look,they're changing the world.
One digital handshake at a time,if you will.
(10:44):
But just ask questions and beinformed on the questions that
you're asking because we reallyare.
It feels like we're at a pivotalmoment where everything is going
to start getting faster, gettingmore visible.
But make sure that it all speaksto each other.
All right, story number four,China's retaliatory port fees.
Yes, you heard that right.
So USTR has Section 301 portfees.
(11:06):
Now China has responded.
I mean, of course they weregoing to, right?
China has responded with theirown special port fees for US
linked vessels.
And also it goes into effectnext week, October 14th.
That date might sound familiarbecause that's when the USTR
Section 301 port fees go intoplace.
So what are they gonna, what arewhat's the what are they
(11:27):
proposing?
What's China saying here?
They're gonna be starting with afee per net ton that starts on
October, and then it's going toincrease every year annually on
April, which is the exact samesystem that USDR Section 301
does.
So we're looking at 400 won pernet ton, which is about 56 bucks
per net ton.
And then we're gonna increase,we're gonna go 641 per net ton,
(11:49):
which goes about 90 bucks perton, and so forth, so on and for
so forth.
It's a mirror move, right?
It's a ton for ton response tothe US policy.
Costs for US linked vessels aregonna rise each year, like I
said.
But also, just so you know, it'sonly on the first stop in into a
Chinese port, and it's only upto five times.
(12:09):
I think I it the information isjust coming out today.
But look, what does this mean?
I mean, if you really thoughtabout it, it's not a surprise,
right?
Of course, we have this USDRsection 301 that is trying to
impact behavior.
Of course, China's gonna try tofight back on it.
What this means to me is thatthis is gonna get a little
(12:30):
intense with China for the nextfew weeks, perhaps the next few
months.
Things are gonna be coming to ahead, but I don't necessarily
see it as a bad thing.
I mean, it's not gonna becomfortable for a while, but I
think that the severity of thesefees going into goods, I think
it's going to be manageable.
(12:52):
And I think that it's also theintensity is ramping up for
sure, but I also think that thismeans that maybe we're gonna be
pushing into an actual tradenegotiation done deal.
Maybe, maybe, right?
It's death by a thousand cuts,it's all these things that are
going on all at the same time.
So this leads me into storynumber five.
Bloomberg News, G Captain wasreposting a Bloomberg article.
(13:14):
Bloomberg was reporting thatevery link in the supply chain
is already working to minimizeexposure to the new USTR6301
vessel fees.
We've talked about this a littlebit where we've seen major ocean
carriers rerouting theirvessels, moving their vessels
around so that they havenon-Chinese built vessels
calling the US.
And so they're not just swappingvessels, they do have quite a
(13:37):
few Japan, Korean vessels builtin those countries that wouldn't
be subject to the USTR Section301s.
They're just swapping them withthe vessels that that perhaps
maybe Europe to China vesselsare now the Chinese-built
vessels, and perhaps the US toChina vessels will now be these
Korean or Japanese vessels.
(13:59):
So we've also seen, becausethere is a an exception for
US-based companies, we've seensome reflagging into US flags.
CMACGM did that.
That was a great success.
We're seeing some changing ofbehavior, and right, and that's
exactly the point.
The vessel fees were designed toinfluence behavior, not just
(14:20):
collect revenue.
They're intended to steerlong-term fleet investment away
from Chinese built or Chineseoperated.
And in that sense, I'd say thatthe policy is already working.
We haven't even seen the firstfee, which will go into effect
next week in four days, October14th.
And actually, if I if you haveanything to do with this, I
suggest you go look up.
(14:40):
There's new frequently askedquestions where they're saying I
think it's three days in advanceyou have to submit your payment
for this, or there might bedelays.
So I go check it out.
If you have anything, if you arepart of a vessel that is coming
into the US and it's a vesselthat was built in China or it's
operated in China by a Chinesecompany, make sure that you know
(15:01):
what these fees should bebecause that also puts you in a
better position if you happen toget charge to surcharge.
Because even though the oceancarriers have said that they're
not going to be doing generalsurcharges, I would also caution
it's still as likely going to bea pass-through charge because
it's not their fault, right?
These vessels that theypurchased from China, they
(15:22):
purchased a while ago.
You can't just go to the vesselstore and go pick up a new
vessel.
So they aren't necessarily thereason why this fee is going
into place.
Neither are you, if you're theend consumer, if you're the end
cargo owner.
But everybody's just got to beinformed on what's going on
here.
Everybody has to make sure.
(15:42):
I've said this a million timesbefore, but go, if you have
shipping documents, if yourgoods are going on a vessel, go
look up the name of the vesselin your shipping documents.
Go Google that vessel and seewhere it was built.
And then that way you know ifyou get a fee that passes
through, maybe accidentally ormaybe properly, you know, you
know, because if it accidentallygets passed through to you, but
(16:04):
you shouldn't have been subjectto one of those fees, okay.
Well, now you have a place tostart with.
But also, if you see that youryour goods are on a Chinese
built vessel, it's not yourfault either.
You might have some chargescoming down to you, and it's
better to know about them thanto be surprised, right?
So that's exactly the pointhere.
(16:24):
Look, but the thing about it isit's just so important to know
what's going on here, right?
We saw a lot of blank sailingsover the summer, and this is
where that panel conversation wehad, it actually came up.
Just data, general data, butdata without the human element
doesn't tell you the full story.
There were reports over thesummer saying blank sailings are
(16:45):
up.
This is a big deal.
I suggest that it wasn't a bigdeal because people, these ocean
carriers were redeploying theirfleets.
They were getting the exposureto these port fees minimized.
They were moving, like I said,their Chinese-built vessels out
of the U.S.
circuit as much as they couldand moving their Korean or
(17:07):
Japanese-built vessels into theU.S.
circuit.
And so what happens?
They might have to skip a fewport calls.
And that's what happened.
We saw some blank sailings tipup over the summer.
And without that human element,without knowing the whole story,
you might have suggested thatsomething else was happening.
I remain, I think those werejust strategic vessel
(17:27):
realignments, and those blanksailings over the summer were
planned redeployments,short-term plan because they
were reacting to the April,April USDR Section 301s, but
they were planned.
Carriers repositioning theassets.
All right, story number sixUS-Finland icebreaker deal.
Look, we had just yesterday,President Donald Trump and
(17:50):
Finnish President AlexanderStubb approved a landmark
agreement for the US to purchaseor co-produce up to 11
Finnish-designed icebreakers forthe U.S.
fleet.
Now, we are hobbling by withicebreakers.
This is so critically important.
The U.S.
currently operates only ahandful of active icebreakers,
and the larger ones are often ondry dock, but Russia commands
(18:14):
more than 40.
So expanding to 11 newicebreakers means we get better
Arctic access.
We get better Great Lakessupport.
We have improved nationalresilience for extreme weather
operations, and we can just bemore places.
It's important to haveicebreakers.
(18:35):
Finland brings proven designs.
The U.S.
brings scale and purpose and arenewed, new interest in
shipbuilding.
And together, this will buildthe backbone of a modern polar
fleet.
Look, it's data, it's design,it's diplomacy, all working
together to strengthen America'smaritime capabilities for the
colder decades ahead, or perhapsjust the colder months ahead.
(18:56):
Here we are, it's October.
I think we brought the coldweather down from Quebec back to
the continental United Statesbecause it got chilly in New
England here.
All right.
Well, final thought bringing itall together from Quebec City to
LA to Washington to Helsinki.
We are all over the place withtoday's episode.
But look, one truth runs throughit all, right?
(19:17):
Visibility builds trust, andeverybody's asking for more
visibility.
Standardization buildsefficiency.
I remain, I think that'simportant.
Collaboration builds strength.
And look, whether it's AIdetecting unsafe cargo, carriers
adopting DCSA standards, fleetsresponding to tariffs, or
nations co-building icebreakers.
The maritime world ismodernizing fast.
(19:40):
Look, Commissioner Dye of theFMC, she's often said this.
I've said this on year before.
You don't need more data.
That might sound a littlecounterintuitive to all the
things we talked about today,but you don't.
You don't need more data.
You need the right data.
And that is the critical piece.
That's what we talked about onthe panel.
And that's what I hope you getfrom listening to my shows.
(20:02):
You need the right data.
We need connected, contextual,comprehensive data that speaks
the same language.
And we need people to know howto use it, right?
You need that human element.
You can't just have numbers, youcan't just have information.
You need it to make sense.
And so that's both computer, butthat's human element as well.
All right.
(20:22):
Well, if you like this episode,be sure to follow, subscribe,
and leave a review.
Want to go deeper or bring thiskind of insight to your team,
visit themaritimeprofessor.com.
We do corporate trainings,tailored briefings, on-demand
webinars that make complexmaritime regulations practical
and easy to understand.
And if your organization needshelp navigating the legal or
strategic side of oceanshipping, head to School
Strategies.
That's where I provideconsulting services, regulatory
(20:44):
guidance, and policy support forclients working in the industry.
Now, this podcast is foreducational purposes only and
should not be considered legaladvice.
If you need an attorney, contactan attorney.
So until next time, I'm LaurenBeegan, the Maritime Professor,
and you've just listened to ByLand and By Sea.
See you next time.
Ready to go.
You're listening to By Land andBy Sea, powered by the Maritime
Professor.
Global trade doesn't stop.
It swerves.
(00:21):
Tariff shifts, ships reroute,and technology keeps rewriting
the rules in a good way, though,I think.
This week I was in Quebec Cityfor the American Association of
Port Authorities annualconference.
This is where port leaders,regulators, and innovators come
together to tackle one bigquestion.
How can ports pick planstrategically when the world
(00:44):
refuses to sit still?
We're going to break it alldown.
This week is the Captain's Logedition.
There's a couple other storiesyou're not going to want to
miss.
Hi, welcome back to By Land andBy Sea, an attorney breaking
down the weekend supply chain,presented by me, the Maritime
Professor.
I'm Lauren Beegan, former FMCInternational Affairs Attorney
and founder of the MaritimeProfessor and Squall Strategies.
(01:05):
The guidance here is general andfor educational purposes only.
As always, if you need anattorney, contact an attorney.
Now, this is plain languagemaritime created so anybody, not
just lawyers or insiders, canunderstand what's happening in
shipping.
So let's dive in because as youknow, ocean shipping moves the
world.
All right.
(01:25):
Well, this week, like I said, Iwas at the American Association
of Port Authorities annualconference in Quebec City.
And I was honored to be asked tojoin a panel of incredibly
talented, intelligent colleaguesin the industry.
So it was our panel called SmartStrategies, Harnessing
Technology to Navigate GlobalTrade Shifts.
(01:46):
And it explored how data andtechnology are transforming port
planning, enabling leaders toforecast cargo trends, and
optimize vessel scheduling anddiversify commodity portfolios.
Our panel was led by former U.S.
Coast Guard Rear Admiral,retired John Mauger, Aaron
Chosova of the National CargoBureau, and Captain Adila Sheikh
(02:07):
of Polestar Global.
Now, Rear Admiral Malger led thediscussion and really rooted us
in the principle of how shareddata can strengthen maritime
safety and preparedness acrossagencies and across the supply
chain.
Aaron Chosova also emphasizedthe standardized cargo
declarations and digitaldocumentation documentations are
(02:30):
key to risk reductions.
And she explained that theNational Cargo Bureau had a new
partnership with the WorldShipping Council, which uses AI,
artificial intelligence, toidentify misdeclared or
dangerous cargo before it's evenloaded onto the vessel.
We had mentioned that a fewweeks ago on the show.
It was fantastic to hear hertalk about it.
I do want to point outmisdeclared cargo has caused
(02:54):
catastrophic shipboard fires andmajor supply chain disruptions.
This new AI technology, this newAI screening approach, really
adds a safety net at thisdocumentation level, protecting
crews, cargoes, andinfrastructure.
It's a fantastic thing thatNational Cargo Bureau and World
Shipping Council has rolled out.
(03:14):
Now, Captain Adil expanded onhow real-time vessel tracking
and data fusion are transformingoperational awareness with
Bullstar Global, giving portsand regulators a complete faster
picture of what's actuallyhappening across the maritime
domain.
From birth scheduling tocompliance and security, he
tackled it all.
He talked about it and all ofthe great things that they're
(03:35):
working on.
Now, during the panel, I alsoshared a point that I think
really resonated as we all rushtoward new technology.
And this isn't anything new thatI've never told you guys before.
This is something we come backto a lot.
As we're all rushing toward newtechnology, it's critical that
we assess that shiny new productthat you want to take off the
(03:56):
shelf.
You need to make sure that itactually speaks the language of
the industry.
Now, what does that mean?
Standards.
This is where standards come in,making sure all these digital
systems can actually talk toeach other.
Now, I've highlighted the workbefore, and I certainly did on
this panel, the work of CarlBensel, former FMC commissioner.
We had him on just a few weeks,actually just last week.
(04:17):
And we I've often talked aboutthe work that he did at the FMC,
the Maritime Transportation DataInitiative, MTDI.
Now, in this panel, I alsoemphasize that he identified the
DCSA, Digital Container ShippingAssociation, as the best
practice for standards in theindustry.
And like I said, if you're goingto take a new shiny product off
the shelf, make sure it canactually speak to everybody else
(04:38):
in the industry.
That's where DCSA comes in.
And they're continuing to leadthe effort to align these data
frameworks across carriers,ports, and shippers.
During that panel, I alsoemphasize that data itself needs
to be part of infrastructureplanning, right?
Just like dredging a channel orbuilding a new berth, ports
should be investing in thedigital foundations that make
(05:00):
those assets work smarter.
Because modern infrastructureisn't just concrete and cranes,
it's also code and connectivity.
But it certainly is concrete andcranes too.
So we need to make sure thatwe're focusing on that.
But we, this code andconnectivity, this data side of
things, it's important.
Now, during this panel, weexplored how ports are evolving
from physical gateways intoinformation ecosystems, where
(05:22):
transparency, timing, and datasharing drive both efficiency
and resilience.
Now, look, why does this allmatter?
The maritime world is shiftingfrom reactive to predictive.
The future of smart strategyisn't about having more data,
right?
It's not about having more.
It's about connecting,translating, and acting on the
data we do have.
And one takeaway that reallyrose to the surface, I thought,
(05:44):
from this panel was that wedon't have a data problem.
We have a data translation andvisibility problem.
And I think we're getting there.
We're getting there.
We're moving forward.
All right, story number two theLA fashion district case where
tariff evasion turns criminal.
So while we were discussing allof these things up in Quebec,
(06:05):
the United States Department ofJustice this week announced a
case that proves why all of thismatters, why you have to stay
aware of what you're doing.
And I don't think that this wasa matter of aware or not aware,
because this looks like it was abigger deal.
So this week the DOJ on theirwebsite announced LA Fashion
District wholesaler andexecutives sentenced for money
(06:25):
laundering and avoiding customsduties and taxes.
Now, two executives weresentenced for laundering money
and evading customs duties onapparel imports.
The announcement said thedefendants avoided customs
duties and tariffs by purchasinggarments from overseas
manufacturers, including fromChina, but then submitting false
(06:46):
information to the United StatesCustoms and Border Protection
CVP that understated the truevalue of the items being
imported into the United States.
Now, perhaps this wasn't just abookkeeping error, right?
Perhaps, and it seems that itwas, a deliberate terror fraud,
right?
Agencies are now cross-matchingcustoms, banking, and logistics
(07:08):
data to catch these mismatchedfilings instantly.
Now, why does this matter?
For importers, visibility equalscompliance.
When data doesn't align,enforcement follows.
This was an extreme example.
It seems to it seems that theyknew exactly what they were
doing here.
But with all of the tariff goingback and forth and some of the
(07:29):
questions that we had over thisfall, it I guess I bring this up
just to remind you, just stayvigilant.
Make sure that you are trying tocross-reference, finding out
from CBP directly.
They usually are, they've beenposting FAQs, frequently asked
questions on their website.
Make sure that you understandhow you're supposed to be
applying these tariffs, whetherit's the USTR Section 301 port
(07:52):
fees or whether it's actuallyyour goods coming into this
country.
Make sure that you understand itbecause there are significant
severe consequences.
Customs brokers also help youwith this.
Just make sure that you have theright people around you because
there's some criminal, this isthey have some court some jail
time from this DOJ announcement.
All right, story number three.
(08:12):
Let's take it back to DCSA.
So, like I said, on this panelin Quebec, I talked about how
important it was that any newtechnology we bring into ports
and terminals, shiny new toolsand dashboards can actually
speak the language of theindustry.
And look, DCSA actually had anannouncement this week.
They launched their new standardconformance program, which
confirms which ocean carriersare officially aligning with
(08:34):
these digital standards andwhich standards they're
adopting.
Now, this program mattersbecause DCSA is publishing these
standards, and now you can findout who's picking them up,
right?
Some of these standards mightinclude track and trace
visibility to booking data toelectronic bills of date, bills
of lading, excuse me, theoperational vessel schedule,
(08:55):
commercial vessel schedules.
These are all standards thatDCSA has available.
And now shippers can finally askthe carriers, which ones do you
use?
They don't even need to ask.
They can see on this chart.
So look, think of standards,right?
Why do standards matter?
I talk about standards all thetime.
I'm I'm pretty passionate aboutstandards being such a critical
piece of how we all move forwardin digitalization.
(09:17):
Think of it like email, right?
If you use Gmail, maybe I useOutlook, maybe our systems don't
match, but it doesn't matterbecause email has standards to
make sure that the message isstill delivered, right?
Imagine if that wasn't the case.
If every email provider hadtheir own rules, you could only
use messages from people in thesame system.
That's what container shippingkind of is, right?
(09:38):
We've been dealing with it foryears.
Each carrier port freightforwarder builds their own
software, perhaps formats, datacodes.
They're getting better at beingable to talk to each other, but
we shouldn't say they're gettingbetter.
We should just say they talk toeach other.
They're translated correctly.
They all receive and sendinformation and data cleanly
between platforms.
(09:59):
That's where these standardscome into place.
Track and trace standard, aperfect example.
And look, you can now go lookthis up on their conf their
conformance listing.
So when you're comparingcarriers or technology
providers, you can now asksmarter questions.
How are you implementing theDCSA standards?
Are you implementing the DCSAstandards?
And how does that improve thevisibility, speed, and accuracy
(10:21):
for the shipper?
Right?
It's no longer enough fortechnology to just be
innovative.
And that's why I keep saying,ask questions.
When you are taking those shinyplatforms off the shelf, ask
questions.
Are they compatible?
Right?
Just like how email changed howwe communicate globally.
These DCSA standards, look,they're changing the world.
One digital handshake at a time,if you will.
(10:44):
But just ask questions and beinformed on the questions that
you're asking because we reallyare.
It feels like we're at a pivotalmoment where everything is going
to start getting faster, gettingmore visible.
But make sure that it all speaksto each other.
All right, story number four,China's retaliatory port fees.
Yes, you heard that right.
So USTR has Section 301 portfees.
(11:06):
Now China has responded.
I mean, of course they weregoing to, right?
China has responded with theirown special port fees for US
linked vessels.
And also it goes into effectnext week, October 14th.
That date might sound familiarbecause that's when the USTR
Section 301 port fees go intoplace.
So what are they gonna, what arewhat's the what are they
(11:27):
proposing?
What's China saying here?
They're gonna be starting with afee per net ton that starts on
October, and then it's going toincrease every year annually on
April, which is the exact samesystem that USDR Section 301
does.
So we're looking at 400 won pernet ton, which is about 56 bucks
per net ton.
And then we're gonna increase,we're gonna go 641 per net ton,
(11:49):
which goes about 90 bucks perton, and so forth, so on and for
so forth.
It's a mirror move, right?
It's a ton for ton response tothe US policy.
Costs for US linked vessels aregonna rise each year, like I
said.
But also, just so you know, it'sonly on the first stop in into a
Chinese port, and it's only upto five times.
(12:09):
I think I it the information isjust coming out today.
But look, what does this mean?
I mean, if you really thoughtabout it, it's not a surprise,
right?
Of course, we have this USDRsection 301 that is trying to
impact behavior.
Of course, China's gonna try tofight back on it.
What this means to me is thatthis is gonna get a little
(12:30):
intense with China for the nextfew weeks, perhaps the next few
months.
Things are gonna be coming to ahead, but I don't necessarily
see it as a bad thing.
I mean, it's not gonna becomfortable for a while, but I
think that the severity of thesefees going into goods, I think
it's going to be manageable.
(12:52):
And I think that it's also theintensity is ramping up for
sure, but I also think that thismeans that maybe we're gonna be
pushing into an actual tradenegotiation done deal.
Maybe, maybe, right?
It's death by a thousand cuts,it's all these things that are
going on all at the same time.
So this leads me into storynumber five.
Bloomberg News, G Captain wasreposting a Bloomberg article.
(13:14):
Bloomberg was reporting thatevery link in the supply chain
is already working to minimizeexposure to the new USTR6301
vessel fees.
We've talked about this a littlebit where we've seen major ocean
carriers rerouting theirvessels, moving their vessels
around so that they havenon-Chinese built vessels
calling the US.
And so they're not just swappingvessels, they do have quite a
(13:37):
few Japan, Korean vessels builtin those countries that wouldn't
be subject to the USTR Section301s.
They're just swapping them withthe vessels that that perhaps
maybe Europe to China vesselsare now the Chinese-built
vessels, and perhaps the US toChina vessels will now be these
Korean or Japanese vessels.
(13:59):
So we've also seen, becausethere is a an exception for
US-based companies, we've seensome reflagging into US flags.
CMACGM did that.
That was a great success.
We're seeing some changing ofbehavior, and right, and that's
exactly the point.
The vessel fees were designed toinfluence behavior, not just
(14:20):
collect revenue.
They're intended to steerlong-term fleet investment away
from Chinese built or Chineseoperated.
And in that sense, I'd say thatthe policy is already working.
We haven't even seen the firstfee, which will go into effect
next week in four days, October14th.
And actually, if I if you haveanything to do with this, I
suggest you go look up.
(14:40):
There's new frequently askedquestions where they're saying I
think it's three days in advanceyou have to submit your payment
for this, or there might bedelays.
So I go check it out.
If you have anything, if you arepart of a vessel that is coming
into the US and it's a vesselthat was built in China or it's
operated in China by a Chinesecompany, make sure that you know
(15:01):
what these fees should bebecause that also puts you in a
better position if you happen toget charge to surcharge.
Because even though the oceancarriers have said that they're
not going to be doing generalsurcharges, I would also caution
it's still as likely going to bea pass-through charge because
it's not their fault, right?
These vessels that theypurchased from China, they
(15:22):
purchased a while ago.
You can't just go to the vesselstore and go pick up a new
vessel.
So they aren't necessarily thereason why this fee is going
into place.
Neither are you, if you're theend consumer, if you're the end
cargo owner.
But everybody's just got to beinformed on what's going on
here.
Everybody has to make sure.
(15:42):
I've said this a million timesbefore, but go, if you have
shipping documents, if yourgoods are going on a vessel, go
look up the name of the vesselin your shipping documents.
Go Google that vessel and seewhere it was built.
And then that way you know ifyou get a fee that passes
through, maybe accidentally ormaybe properly, you know, you
know, because if it accidentallygets passed through to you, but
(16:04):
you shouldn't have been subjectto one of those fees, okay.
Well, now you have a place tostart with.
But also, if you see that youryour goods are on a Chinese
built vessel, it's not yourfault either.
You might have some chargescoming down to you, and it's
better to know about them thanto be surprised, right?
So that's exactly the pointhere.
(16:24):
Look, but the thing about it isit's just so important to know
what's going on here, right?
We saw a lot of blank sailingsover the summer, and this is
where that panel conversation wehad, it actually came up.
Just data, general data, butdata without the human element
doesn't tell you the full story.
There were reports over thesummer saying blank sailings are
(16:45):
up.
This is a big deal.
I suggest that it wasn't a bigdeal because people, these ocean
carriers were redeploying theirfleets.
They were getting the exposureto these port fees minimized.
They were moving, like I said,their Chinese-built vessels out
of the U.S.
circuit as much as they couldand moving their Korean or
(17:07):
Japanese-built vessels into theU.S.
circuit.
And so what happens?
They might have to skip a fewport calls.
And that's what happened.
We saw some blank sailings tipup over the summer.
And without that human element,without knowing the whole story,
you might have suggested thatsomething else was happening.
I remain, I think those werejust strategic vessel
(17:27):
realignments, and those blanksailings over the summer were
planned redeployments,short-term plan because they
were reacting to the April,April USDR Section 301s, but
they were planned.
Carriers repositioning theassets.
All right, story number sixUS-Finland icebreaker deal.
Look, we had just yesterday,President Donald Trump and
(17:50):
Finnish President AlexanderStubb approved a landmark
agreement for the US to purchaseor co-produce up to 11
Finnish-designed icebreakers forthe U.S.
fleet.
Now, we are hobbling by withicebreakers.
This is so critically important.
The U.S.
currently operates only ahandful of active icebreakers,
and the larger ones are often ondry dock, but Russia commands
(18:14):
more than 40.
So expanding to 11 newicebreakers means we get better
Arctic access.
We get better Great Lakessupport.
We have improved nationalresilience for extreme weather
operations, and we can just bemore places.
It's important to haveicebreakers.
(18:35):
Finland brings proven designs.
The U.S.
brings scale and purpose and arenewed, new interest in
shipbuilding.
And together, this will buildthe backbone of a modern polar
fleet.
Look, it's data, it's design,it's diplomacy, all working
together to strengthen America'smaritime capabilities for the
colder decades ahead, or perhapsjust the colder months ahead.
(18:56):
Here we are, it's October.
I think we brought the coldweather down from Quebec back to
the continental United Statesbecause it got chilly in New
England here.
All right.
Well, final thought bringing itall together from Quebec City to
LA to Washington to Helsinki.
We are all over the place withtoday's episode.
But look, one truth runs throughit all, right?
(19:17):
Visibility builds trust, andeverybody's asking for more
visibility.
Standardization buildsefficiency.
I remain, I think that'simportant.
Collaboration builds strength.
And look, whether it's AIdetecting unsafe cargo, carriers
adopting DCSA standards, fleetsresponding to tariffs, or
nations co-building icebreakers.
The maritime world ismodernizing fast.
(19:40):
Look, Commissioner Dye of theFMC, she's often said this.
I've said this on year before.
You don't need more data.
That might sound a littlecounterintuitive to all the
things we talked about today,but you don't.
You don't need more data.
You need the right data.
And that is the critical piece.
That's what we talked about onthe panel.
And that's what I hope you getfrom listening to my shows.
(20:02):
You need the right data.
We need connected, contextual,comprehensive data that speaks
the same language.
And we need people to know howto use it, right?
You need that human element.
You can't just have numbers, youcan't just have information.
You need it to make sense.
And so that's both computer, butthat's human element as well.
All right.
(20:22):
Well, if you like this episode,be sure to follow, subscribe,
and leave a review.
Want to go deeper or bring thiskind of insight to your team,
visit themaritimeprofessor.com.
We do corporate trainings,tailored briefings, on-demand
webinars that make complexmaritime regulations practical
and easy to understand.
And if your organization needshelp navigating the legal or
strategic side of oceanshipping, head to School
Strategies.
That's where I provideconsulting services, regulatory
(20:44):
guidance, and policy support forclients working in the industry.
Now, this podcast is foreducational purposes only and
should not be considered legaladvice.
If you need an attorney, contactan attorney.
So until next time, I'm LaurenBeegan, the Maritime Professor,
and you've just listened to ByLand and By Sea.
See you next time.
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