WASHINGTON WATCH: A Maritime Reflection on the First 30 Days

The first thirty days of the new Trump Administration have brought sweeping changes throughout the federal government. We take a pause to assess where things stand for maritime stakeholders and what may be coming next in Washington, DC, for our industry.A Maritime DirectiveFor those that work in the U.S maritime space, it is axiomatic to state that all aspects of the maritime industry are critical to our national security. U.S. flag vessels and merchant mariners not only support U.S. economic prosperity, but also build the key sea lines of communication to support military operations.
Box Shipping Rates may fall as US Port Strikes Averted

Strikes at ports on the US East Coast and Gulf Coast, which would have caused an economic and supply chain crisis, have been called off – with ocean container freight rate growth now expected to slow or fall.The strikes were set to begin on 15 January and would have forced the closure of ports from Maine to Texas. This has now been averted after a tentative agreement over a new six-year master contract was reached between the International Longshoremen’s Association (ILA), which represents port workers…
PDVSA 2024 Oil Exports Climb in Choppy Year

Venezuela's oil exports rose 10.5% last year despite political instability and changes to the U.S. sanctions regime on the country, as partners of state oil company PDVSA took more cargoes under licenses granted by Washington.As President Nicolas Maduro gets ready to start his third term in office next week following disputed election results, the OPEC country's oil exports rose for a second consecutive year, providing revenue to contribute to economic growth.U.S.-sanctioned PDVSA PDVSA.UL and its joint ventures exported an average of 772…
House Oversight Committee Releases Memo on USCG Misconduct Probe
House Committee on Oversight and Accountability has released an interim staff memorandum providing an update on the Committee’s ongoing investigation into the United States Coast Guard (USCG) following allegations of pervasive sexual assault and misconduct.The memorandum details how the USCG concealed “Operation Fouled Anchor” from Congress, failed to address both historic and persistent sexual misconduct at the USCG Academy, and neglected to help victims and hold perpetrators accountable.Key Takeaways from the Interim Memorandum:USCG leadership made a cognizant decision to withhold Operation Fouled Anchor and other related misconduct reviews from Congress and the public.
Trump Signals Support for ILA Dockworkers
U.S. President-elect Donald Trump on Thursday appeared to back the anti-automation stance of some 45,000 union dockworkers on the U.S. East and Gulf Coasts, whose labor talks are at an impasse over that polarizing issue.The ILA and the United States Maritime Alliance (USMX) employer group are facing a Jan. 15 deadline to finalize talks, which stalled over automation. That cutoff comes just five days before Trump's inauguration.The ILA says automation kills jobs while employers say it is necessary to keep U.S. ports competitive in a rapidly changing global economy."The amount of money saved is nowhere near the distress, hurt, and harm it causes for American Workers, in this case, our Longshoremen," Trump said of automation projects in a post on Truth Social.
Venture Global gets FERC Nod for LA LNG Plant
Federal regulators on Wednesday gave Venture Global LNG permission to introduce natural gas into its Plaquemines export plant in Louisiana, documents show, moving the plant a step closer to producing the superchilled gas.The 20 million metric tons per annum (MTPA) Plaquemines LNG plant will be the second-largest U.S. export facility when fully operational. It and other projects due to start next year will help the United States retain its position as the world's largest exporter of the gas.Its commercial startup will make Venture Global the second-largest U.S. LNG producer with the capacity to export over 30 MTPA from its Calcasieu Pass and Plaquemines facilities, both in Louisiana.
Panama to Cancel Flags on US-sanctioned LNG ships
Panama's Maritime Authority said on Wednesday it has begun a process to cancel flags on four LNG vessels sanctioned by the United States over their links with Russian gas producer Novatek.The vessels North Air, North Mountain, North Way and North Sky, which have been operating under Panama's flag, had previously been identified as part of Russia's dark tanker fleet, according to media reports quoted by the authority.
Shipping Magnate in Legal Scrum Over Match Fixing Accusations

Evangelos Marinakis, a Greek shipping magnate and owner of English Premier League soccer club Nottingham Forest, was on Thursday accused of trying to fix a Greek soccer match, in a London libel lawsuit he is bringing over an alleged smear campaign in Britain. Marinakis launched the libel case against Irini Karipidis, chair of Greek Super League club Aris Thessaloniki, and others at London's High Court this year.He alleges Karipidis was behind a website containing allegations Marinakis was involved in match fixing…
North Sea O&G Licences Trigger Oceana UK Legal Action

Britain's decision to issue dozens of new oil and gas exploration licences is being challenged in court by a marine conservation organization, which argues ministers unlawfully failed to consider the impact on marine life.Oceana UK is taking legal action over 31 licences issued under Britain's previous government in May this year as part of the North Sea Transition Authority's latest oil and gas licensing round.An exploration licence does not necessarily result in a producing field, though environmental groups argue that expansion of oil and gas production is inconsistent with the government's
The Curious Case of the 1,200 MW Transmission Size “Limit” in New England

How the Maximum Contingency of 2,200 MW Was Recast to a 1,200 MW CeilingAs policy makers and energy developers look to develop and interconnect large offshore wind projects in the most economically efficient and least environmentally impactful way, an issue has developed. A relatively recent limit, set in place by the grid operator in New England in a planning process document, states that no single system loss of energy, or “contingency”, can be larger than 1,200 megawatts (MW). This 2016 addition to ISO New England’s (ISO-NE) Planning Procedure No.
Structural Safeguards in Coast Guard Suspension and Revocation Proceedings

This article examines 10 structural safeguards in Coast Guard Suspension and Revocation (S&R) Proceedings that ensure Coast Guard Administrative Law Judge (ALJ) decisional independence. These safeguards separate potential agency influences from the ALJ decision making process and are critical to mariner due process and fundamental fairness. We will start with an overview of Coast Guard S&R proceedings, followed by brief discussions of the Administrative Procedure Act, Administrative Law Judges, and U.S. Office of Personnel Management oversight.
Legal Beat: Rule B Alter-Ego Vessel Seizures

Plaintiffs seeking to recover from ship managers or the vessels they operate but lacking a direct claim against a particular vessel have developed a clever strategy under U.S. maritime law. They seize a managed vessel under Supplemental Admiralty Rule B and claim the vessel-owning company is an alter ego of the defendant with whom the dispute really exists. In this way, plaintiffs can take advantage of the relatively low evidentiary bar to delve into protracted discovery to develop…
Insurers Discuss Container Casualty Causes

Handling of steel boxes throughout the shipping, ports and logistics supply chain has historically grown exponentially, putting strains on a range of operational procedures and the physical hardware employed to handle the steel boxes, particularly onboard ships. A recent webinar organized by the Thomas Miller managed insurance mutuals, container freight specialist TT Club and protection & indemnity insurer, UK P&I Club, revealed the diverse range of factors important to safe container ship operations and the security of the container stacks they carry.
Congress Responds to COVID19 and Other Challenges for the Maritime Industry

In response to the worldwide COVID-19 pandemic, the Congressional Research Service released a report that stated global economic growth has declined by 3% to 6% in 2020 with a partial recovery predicted for 2021. Also, the GDP of the U.S. has fallen by 5% in the first quarter 2020. According to the International Maritime Organization (IMO), the maritime industry, and seafarers themselves, have not been able to escape the significant effects of this crisis.All sectors of the maritime industry have been adversely affected by the global pandemic.
The Emerging U.S. Offshore Wind Industry in a Post-COVID-19 World

Join a webinar on June 17, 2020 for the global release of a major new market study on the depth, breadth and growth prospects of the Offshore Wind Market -- https://zoom.us/webinar/register/WN_UR5uY1boTOKdAAcAXDbR4gJust when it was looking like the offshore wind industry was finally about to take off in the United States, the COVID-19 pandemic has introduced one more significant layer of uncertainty upon an already very complicated playing field. There are currently 15 active offshore wind projects in the planning stages which…
Singapore Aims to Incentivize Environmental Protection During Salvage Ops
A statement from a Singapore Ministry of Law spokesperson outlines details of a Bill for read in Parliament today regarding maritime salvage:The Singapore Ministry of Law will table the High Court (Admiralty Jurisdiction) (Amendment) Bill (“the Bill”) for First Reading in Parliament on 4 May 2020. The High Court (Admiralty Jurisdiction) Act is the primary legislation on admiralty jurisdiction in Singapore. The Bill will extend the Singapore High Court’s admiralty jurisdiction to special compensation claims arising from salvage operations which prevent or minimize environmental damage, even if the ship or its cargo are not saved. Salvors may hence enforce such special compensation claims by way of actions in rem (i.e.
IMO 2020: U.S. Restricts the Use of Certain Fuels in Scrubber Vessels

With the January 1 implementation of IMO 2020, which requires dramatic reductions in the sulfur content of emissions from ocean-going vessels, the United States government issued a new rule that it asserts actually facilitates the distribution of compliant fuel.The US Environmental Protection Agency asserts that it is taking steps to allow for the distribution of distillate fuel with sulfur content of up to 5,000 ppm sulfur—something that it asserts was previously prohibited.
Five Common Mistakes in Maritime Contracts

“An ounce of prevention is worth a pound of cure.” – Henry de Bracton, DeLegibus, ~1240Often clients or prospective clients come to me with a commercial contract issue perched on the precipice of full-blown litigation or arbitration. When I ask to see the contract, often times I see errors in drafting that either (1) give rise to the problem before me or (2) could create a bigger problem for the client in the future.The risk of drafting error is higher for Europeans looking to contract with American companies.
Autonomous Ships, Opportunities & Challenges

Maritime autonomous surface ship (“MASS”) technology continues to advance at a rapid pace around the globe. Although it’s not being embraced as quickly in the United States commercial market as other parts of the world, U.S. industry professionals and regulators look forward to continued development and implementation as a means to improve efficiency and safety.OpportunitiesThe U.S. Maritime Administration (“MARAD”) hosted “Achieving Critical MASS: Spotlight on the U.S. Vessel Automation Industry” July 22 and 23, 2019, encouraging discussion between U.S.