Shipping Industry Considers Strategies to Navigate Trump Administration Policies

By Ira Breskin

Shipping industry executives are currently grappling with potential disruptions caused by policy changes under consideration or already enacted by the Trump administration. At the 40th annual Connecticut Maritime Association meeting in Stamford, CT, speakers discussed various options to address these challenges.

One of the key concerns for containership operators is the looming prospect of costly port fees proposed by the Trump administration. To avoid these fees, operators are contemplating radical changes to their ship schedules. Bethann Rooney, the port director for the Port of New York and New Jersey (PONY/NJ), expressed apprehension about the potential impact on smaller secondary ports if vessels are rerouted to major US “load center” ports.

Rooney emphasized that the repercussions of such a decision could be more severe than the congestion experienced at West Coast ports during the COVID-19 pandemic. With PONY/NJ being one of the busiest container ports on the East Coast, redirecting container ships to this port could significantly increase its container throughput to over 16 million TEU annually.

The proposed port fees, aimed at foreign-flagged ships calling at US ports, are intended to incentivize the use of US-flagged commercial vessels. This has led to containership operators considering major schedule adjustments to mitigate the financial impact of these fees.

Meanwhile, amidst the regulatory uncertainties, niche New England port operators are continuing to support wind farm operations near their ports. This comes in the wake of the Trump administration’s Executive Order halting permits for additional offshore wind farm development in federal waters.

While the potential schedule modifications and market bifurcation pose challenges for the shipping industry, industry experts believe that any disruptions may be short-lived. Trump’s successor in office could potentially overturn these policies, offering some hope for a more stable operating environment in the future.

Ira Breskin is a senior lecturer at State University of New York Maritime College and author of The Business of Shipping (9th edition, 2018).