The Gallagher Report – Issue #2 February 2025. This week in the maritime industry saw continued uncertainty and disruption with increased tariffs announced, targeted & untargeted budget cuts, and ambiguous messaging. If this week were a playlist, it would certainly begin with Slash’s opening, chorus-heavy riff to Welcome to the Jungle (not a Rick-roll, I promise).
In case Elon is monitoring this signal, I’ve included what I did this week.
I met with local industry leaders, provided testimony on the value of Harbor Safety Committees, wrote a controversial LinkedIn post (someone called me a “typical Seattle libtard” lol), pulled shipping data for the Coast Guard, and joined the board of the YOUTH MARITIME TRAINING ASSOCIATION.
We continued monitoring the legislative session (not much to report today), and I talked with some great folks from Canada twice (gasp!) – first about Transmountain tanker traffic, then second about developing port optimization software for Puget Sound.
For the record, I’m from Montana.
Seattle City Council/Industrial Lands Deal
The knife fight continues with a hearing that did not go our way. To be clear, we oppose any effort to erode the zoning of maritime industrial lands, and this latest proposal to convert industrial lands to housing is misaligned with sustaining a healthy maritime industry in Washington.
Washington State’s Budget Proposal: Maritime Industry Must Stay Vigilant
Governor Bob Ferguson’s proposed budget cuts to address Washington’s $15 billion shortfall have spared direct reductions in maritime investments, but the industry should remain on high alert. While the budget plan prioritizes essential services such as K-12 education, public safety, and Medicaid, maritime stakeholders should pay close attention to the ripple effects.
Key Takeaways for Maritime & Ports:
- No direct cuts to Washington State Ferries or port infrastructure.
- Agency-wide reductions may delay dredging, regulatory processing, and environmental permitting.
- Potential workforce impacts from furloughs at the Department of Ecology and DNR could slow spill response and regulatory approvals.
- Environmental funding uncertainty as COVID-era federal funds phase out.
- Federal support remains unclear and could affect port infrastructure grants and economic development programs.
While this budget does not single out maritime for cuts, indirect consequences could be significant. Washington’s maritime industry must stay engaged in legislative discussions to ensure continued competitiveness and support.
USTR Seeks Input on China’s Maritime & Shipbuilding Dominance
The U.S. Trade Representative (USTR) is calling for public input on new Section 301 actions aimed at countering China’s influence in global maritime trade. This follows a 2024 investigation that found China’s state-driven practices harm U.S. commerce, displace foreign competitors, and create economic dependencies.
Proposed Measures:
- Significant fees on Chinese ship operators and China-built vessels (up to $1M per Chinese arrival, $1.5M per Chinese-built ship).
- Incentives for U.S.-owned ships transporting domestic goods.
Key Deadlines:
- March 10, 2025 – Deadline to request to speak at the public hearing.
- March 24, 2025 – Deadline to submit written comments and attend the hearing.
Action Steps for Stakeholders:
- Submit Comments by March 24 via the USTR portal.
- Request to Testify by March 10 to voice concerns.
- Review USTR’s Report to strengthen your input.
- Engage Your Network by sharing this with industry peers.
- Consult Trade Experts to understand business implications.
- Monitor Updates on final determinations.
This is a pivotal moment for shaping U.S. trade policy. These measures could have far-reaching consequences for Washington’s ports, shippers, and supply chain resilience.
Disruptions in Federal Maritime Agencies – What You Need to Know
Reports indicate that federal workers responsible for maritime regulation, safety, and investment have received an urgent request to summarize their weekly accomplishments, with a deadline that may or may not have meant anything beyond causing disruption. Failure to respond is being interpreted as an automatic resignation but not everyone took it seriously.
This is causing uncertainty across agencies such as the Coast Guard, NOAA, MARAD, National Weather Service, and Customs & Border Protection. Some agencies advised employees not to comply, while others faced inconsistencies in leadership messaging.
What This Means for the Maritime Industry:
- Administrative disruptions could slow regulatory approvals, inspections, and certifications.
- Database and IT system outages are impacting real-time maritime tracking and compliance reporting. This week the Marine Exchange of Puget Sound began sending daily shipping reports to our local Coast Guard VTS.
- Budget constraints and travel restrictions are limiting agency field operations.
- Leadership ambiguity is creating confusion over enforcement priorities.
The impact is already being felt. Delays and operational inconsistencies will require adjustments across the maritime sector. Plan accordingly.
Recent Engagements and Industry Collaboration
This past week, I met with MSU Savannah to discuss the establishment of a new Harbor Safety Committee, an important step in ensuring navigational safety and collaboration within the maritime industry. Additionally, I connected with Jake Beattie from Northwest Maritime to record a podcast, covering key issues affecting our industry today.
These discussions highlight the ongoing efforts to strengthen maritime safety, awareness, and education. Stay tuned for more insights from these conversations.
Next week I’ll be speaking at an American Waterways Operators conference about West Coast shipping and Harbor Safety Committee topics.
Final Thoughts
Washington’s maritime sector is facing a complex and evolving landscape. Between state budget adjustments, federal trade policy shifts, and administrative instability within key agencies, maritime stakeholders must stay engaged and adaptable.
I encourage you to share your thoughts, insights, and concerns. Your input shapes how we navigate these changes together.
Stay sharp, stay informed, and let’s keep Washington’s maritime industry strong.
Patrick Gallagher
The Gallagher Report
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