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Ship Photo of The Week
Photo from my cabin on Disney Dream. Photo: Mike Schuler
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Industry Warns Trump’s Ship Fee Plan Could Sink U.S. Trade
President Trump’s plan to revive U.S. shipbuilding via steep port fees on China-built vessels and operators is facing fierce blowback from American industry leaders. At Monday’s USTR hearing, executives warned the proposed tariffs—up to $3 million per port call—would hurt the very U.S. operators and exporters needed to support a domestic shipbuilding revival.
Seaboard Marine CEO Edward Gonzalez said the plan could “unintentionally destroy American-owned carriers,” noting that most U.S. fleets—like Seaboard’s 24 ships, 16 of which are China-built—rely heavily on Chinese shipyards due to a lack of domestic options.
Critics say the fees would shift cargo to larger foreign carriers, bypass smaller U.S. ports, raise consumer prices, and cut into export markets. One study projects a 12% drop in U.S. exports and a 0.25% hit to GDP.
At Wednesday’s final USTR hearing, reps from coal, oil, grain, and soybean industries argued the proposed fee could cripple their ability to get goods to market.
“There is insufficient supply of suitable vessels,” warned Peter Bradley, CEO of Javelin Global Commodities, adding the fees could strand exports and inflate costs. Some commodity shippers have already seen freight costs spike 40%, according to United Grain Corp.
The plan is also drawing fire from Trump’s traditional allies in mining and agriculture. With razor-thin margins and limited alternatives, these industries say they’re being caught in the crossfire of an expanding trade war. Steel producers, meanwhile, remain firmly on board.
Icebreaker Budget Melts Past $1.9 Billion
Bollinger Shipyards just scored a $951.6 million contract boost from the U.S. Coast Guard to keep working on America’s first new heavy icebreaker in nearly 50 years—the Polar Security Cutter (PSC). The update follows Bollinger’s 2022 takeover of VT Halter Marine, which originally snagged the contract in 2019 for a more modest $745.9 million.
Since then, costs have snowballed. The Congressional Budget Office now pegs the lead vessel’s price tag at a frosty $1.9 billion—up from the Coast Guard’s original $3.2 billion estimate for all three ships. The second and third vessels aren’t funded yet, but the CBO figures they’ll cost about $1.6 billion each.
Although Bollinger says it’s ready to start building, it’s still waiting for the official green light, even though the Coast Guard previously hinted construction was slated to start at the end of 2024.
As Arctic tensions heat up—with Russia and China ramping up polar patrols—the pressure’s on. But with the U.S. still figuring out how to build one icebreaker while others build fleets, the race to the Arctic might feel more like a cautious crawl.
USCG’s Storis Gears Up for Arctic Debut
Speaking of icebreakers, the U.S. Coast Guard’s newest Arctic asset, the icebreaker Storis, is prepping for its first patrol in summer 2025—if all goes according to plan. Originally a commercial tug named Aiviq, the vessel is undergoing a $25 million makeover in a Florida shipyard after the Coast Guard scooped it up for $100 million in late 2024.
One lawmaker recently confirmed that Storis is expected to achieve “initial operating capability” by August, cruising the Arctic under the banner of District 17. And yes, she’ll eventually call Juneau home—just as soon as the Coast Guard builds the necessary docks, housing, and, well, everything else.
Named after the legendary cutter Storis (Scandinavian for “great ice”), which served for nearly 65 years before retiring in 2007, the rebooted vessel brings a familiar name back to frigid waters. The catch? Full conversion won’t wrap until 2026.
Port Deal Stalls at the Canal’s Edge
A high-profile deal for two strategic ports at the Panama Canal has hit pause. Hong Kong conglomerate CK Hutchison won’t be signing the expected April 2 agreement to sell its global port portfolio to a BlackRock-led consortium, according to the South China Morning Post. But before you shout “deal’s off!”—sources say it’s just delayed, not dead.
The sale, potentially worth over $19 billion, would have handed control of two key Panama Canal ports and dozens of other terminals outside China to U.S.-aligned investors. U.S. President Trump applauded the move as a way to claw back strategic influence over the strategic waterway.
China? Not so thrilled. State media has slammed the deal, and Bloomberg reports suggest Chinese authorities told state-owned firms to steer clear.
CK Hutchison has held the Panama port concessions since 1998, with a recent renewal good through 2046. Now, the company finds itself in the geopolitical crossfire—between global trade routes and rival superpowers. For now, the deal drifts in bureaucratic limbo… somewhere between a shipping lane and a standoff.
Full Steam Ahead? Trump Picks Naval Strategist to Lead MARAD
In a headline that’s making waves across the maritime world, President Trump has nominated retired Navy Captain Brent Sadler to helm the U.S. Maritime Administration (MARAD) and serve as Commandant of the U.S. Merchant Marine. If confirmed, Sadler—submariner, Heritage Foundation fellow, and vocal maritime strategist—could mark a major course correction for an agency long seen as adrift.
Sadler’s nomination follows the exit of former MARAD head Ann Phillips, whose elusive leadership earned her the nickname “the Ghost Admiral.” In contrast, Sadler brings high-profile energy and a résumé packed with policy chops, think-tank credentials, and cable news appearances.
But not everyone’s aboard. Maritime unions have grumbled that yet again, a seasoned merchant mariner was passed over (it’s been more than two decades since someone with a Master’s Unlimited license ran MARAD).
Still, with China flexing its shipbuilding muscles and Red Sea tensions rising, the stakes are sky-high. Can Sadler’s nomination transform MARAD from a bureaucratic backwater into a national security engine room? We’ll have to wait and see. But first comes the hard part: Senate confirmation.
Europe Chills on Russian LNG—Sort Of
The EU has finally put a freeze on Russian LNG transshipments through its terminals—just over three years into the Ukraine war. The new rule, part of the EU’s 14th sanctions package, blocks about 20% of Russian liquefied gas headed to third countries, with key hubs in Zeebrugge and Montoir complying.
But it’s far from a full ban. Europe still imported a record 16.65 million tonnes of Russian LNG in 2024—about $8 billion worth—mostly from the Arctic Yamal project. And with spot market sales on the rise, some worry the gas will just be redirected back into Europe under a different label.
Meanwhile, Yamal LNG’s majority owner, Novatek, is expanding ship-to-ship transfers at Russia’s Kildin Island to bypass the EU entirely. Eleven transfers have already taken place there in 2025, with newly built LNG tankers—like the North Moon and North Light—now ferrying Arctic gas straight to Asia.
Car Carriers Hit the Brakes
Shares of ocean car haulers skidded this week after President Trump slapped new tariffs on vehicles not made in the U.S., expanding his trade war. Wallenius Wilhelmsen dropped as much as 9.1% in Oslo, while Hoegh Autoliners sank 7.4% on the news.
The sector had been riding high on booming Chinese exports and limited vessel supply, but the tide was already turning as new ships launched and post-pandemic demand cooled. Now, with tariffs throttling imports, analysts at Fearnleys Securities warn U.S.-bound car volumes could drop—taking carrier earnings down with them.
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Equinor ASA expects its $5 billion wind project off New York — blocked then unblocked by the Trump administration — to proceed as planned, but said further investments in US offshore wind are likely off the table.
Commercial shipping in the Middle East may face a new threat after a wave of Israeli attacks against Iran’s military and nuclear leadership further destabilised the already volatile region, with concerns rising over a potential blockade of the Strait of Hormuz.
Israel’s overnight airstrikes on Iran drove up freight rates and tanker stocks Friday as traders and investors priced in the prospect of disruption to a large swath of the global oil-shipping fleet.
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