Fire on the Grande Costa D’Avorio ship

Fire on the Grande Costa D’Avorio in July 2023. Photo courtesy NTSB

Dispatch 59 – The Fees Are Coming

Mike Schuler
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April 19, 2025
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gCaptain Club

Dispatch No. 59


Hello Club Members! Here is your weekly Dispatch with all the maritime news you need to know to end your week.

Ship Photo of The Week

Fire on the Grande Costa D’Avorio ship
Fire on the Grande Costa D’Avorio in July 2023. Photo courtesy NTSB

Top Stories

USTR’s China Ship Fees Set Sail

The U.S. Trade Representative has unveiled a somewhat scaled-back plan to slap fees on Chinese-owned and Chinese-built ships calling at U.S. ports, aiming to curb China’s maritime dominance without sinking trade. Starting in October, Chinese-operated vessels calling in the U.S. will face fees beginning at $50 per net ton—about $4 million per trip for a big containership—rising to $140 per ton by 2028. Non-Chinese operators using Chinese-built ships will pay less, but still plenty. In addition to one-fee-per-voyage limit and a yearly cap, exemptions apply for U.S.-flagged, MARAD-supported, and smaller ships, while a “buy American” clause offers temporary fee relief to those who order U.S.-built vessels.

A second phase will require U.S.-built LNG tankers—eventually. Industry pushback was swift, with the World Shipping Council warning the plan could raise consumer prices and punish bigger, more efficient ships. Still, it’s a softer landing than the original proposal, which floated $1.5 million per port call and potentially stacked fees. The new plan also raises the prospect of steep tariffs on critical maritime infrastructure, including STS cranes and shipping containers, adding another headwind on the horizon. The trade winds may be shifting, but Washington’s message is clear: build it in China, pay the fee.

Peak Performance, Cloudy Horizon

The Port of Long Beach clinched the title of America’s busiest container port in Q1 2025, moving a record 2.54 million TEUs—edging past L.A. by a narrow 32,000 TEUs. March alone saw a 25% year-over-year spike, driven by strong import demand. But don’t break out the confetti just yet—industry forecasts predict choppy waters ahead. The National Retail Federation warns that inbound volumes could sink by 20% in the second half of the year, thanks to early import front-loading, ever-increasing tariffs, and nervous consumers. Port of Los Angeles chief Gene Seroka put it bluntly: “Expect at least a 10% drop.” With spot rates bouncing and trade policy in flux, one thing’s clear—this year’s import surge might not be enough to weather what’s coming.

Ship Fire Exposes Major Training Gap on Shore

The deadly 2023 fire aboard the Grande Costa d’Avorio at Port Newark has sparked sharp criticism from the NTSB, which says Newark firefighters were unprepared for shipboard blazes. Two firefighters died after becoming trapped below decks, where visibility was poor and training was even poorer. The NTSB pointed fingers at everything from the fire response (which accidentally made the fire worse) to a Jeep Wrangler used as a “car pusher” in violation of OSHA rules. While the ship’s crew followed procedures, the design of a garage door and lack of external controls also hampered firefighting efforts. Some changes are already underway—Grimaldi has fixed its doors, and Ports America ditched the Jeep—but training remains an issue. So far, Newark firefighters have only completed a 4-hour online class. The NTSB isn’t impressed, calling for nationwide reforms.

Homeport No More: Mariners Left Adrift

The U.S. Coast Guard has officially pulled the plug on its Homeport portal, the go-to digital hub for verifying mariner credentials, sharing maritime security info, and keeping port operations in check since 2005. The sudden shutdown on April 12 followed weeks of outages, leaving employers scrambling and some mariners jobless due to credential verification delays. The Coast Guard says temporary workarounds are in place, but for now, the industry’s sailing blind—emailing, calling, and even live chatting like it’s 2004. The closure ties into the Trump administration’s broader maritime overhaul, though mariners might argue a heads-up would’ve been nice.

Seafarers Set to Earn a Bit More Booty

The International Labour Organization has charted a course for higher global minimum wages for seafarers, bumping the monthly base pay from $673 to a whopping $690 in 2026, $704 in 2027, and $715 by 2028. The deal was struck in Geneva last week by shipping industry reps and seafarers’ unions under the ILO’s Joint Maritime Commission. While it’s only a modest 6% raise over three years, it keeps the maritime world afloat as the only sector with a global minimum wage system. Shipowners hailed the “balanced” outcome, while labor leaders emphasized that seafarers, who move 90% of global goods, deserve decent pay and recognition. Final approval is expected in November, assuming no one jumps ship.

Wind Knocked Out of Empire Wind’s Sails

The $5 billion Empire Wind project off New York’s coast has been forced to drop anchor after a federal stop-work order issued this week. Citing a Trump executive order halting all offshore wind development, the Bureau of Ocean Energy Management told Equinor to pause operations pending review of the Biden-era approval process. The blow halts construction of an 810 MW project meant to power half a million homes and threatens over $1.5 billion in financing and $28 billion in broader wind investments. Governor Hochul called it “federal overreach,” vowing to fight for union jobs and affordable energy. With 3,500 jobs and contracts across 23 states in limbo, the order has sent shockwaves through the U.S. offshore wind supply chain—and signaled a dramatic shift in federal energy priorities.

Coast Guard Puts Rush on Icebreaker Plan

The U.S. Coast Guard is fast-tracking its Arctic ambitions with a new Request for Information (RFI) seeking input on building up to three medium icebreakers—called Arctic Security Cutters—within just three years. The RFI invites both domestic and international yards to pitch designs that could begin construction in 12 months and launch within 36. That’s a tall order for U.S. shipbuilders, but familiar territory for Finland and Canada, both partners in the recently formed ICE Pact. The proposed 360-foot vessels are designed for seasonal Arctic patrols and would be smaller than the still-incomplete Polar Security Cutter, which is now years behind schedule. With only one heavy icebreaker funded and polar tensions rising, Washington’s message is clear: time to break the ice—quickly.

U.S. Turns to Finland for Icebreaker Boost

With urgency mounting, the Coast Guard is reportedly in talks with Finland’s Rauma Marine Constructions (RMC) to build up to five medium icebreakers in a deal valued at $2.7 billion. Finland’s yards, responsible for 60% of the world’s icebreaker builds, are no strangers to speed—they can deliver vessels in just 36 months, meeting the Coast Guard’s RFI timeline almost perfectly. The negotiations follow a White House meeting between Finnish President Stubb and President Trump, and may even expand to include three heavy icebreakers down the line. The plan could drastically accelerate the U.S. Arctic fleet buildout, especially compared to the long-delayed Polar Security Cutter. With Canada also tapping Finnish expertise, the Arctic shipbuilding race is heating up—and America looks ready to import a head start.

Deadliest U.S. Strike Yet Hits Yemen Fuel Port

A U.S. airstrike on Yemen’s Ras Isa fuel terminal killed at least 74 people and injured 171, according to Houthi health officials—marking the deadliest attack since President Trump escalated the bombing campaign last month. The Red Sea terminal, operated by the Safer Oil Company and critical to Houthi fuel revenues, was reportedly targeted to cripple the group’s economic power. U.S. Central Command said the goal was to degrade Houthi capabilities, but did not confirm casualty numbers.

The port, long suspected as a launch site for Houthi drone and missile attacks on commercial shipping, also plays a major role in Yemen’s fuel imports. Though the Houthis paused Red Sea attacks during a Gaza ceasefire, they’ve once again resumed action—raising fears of further escalation.


Additional Reading

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