AI image of an Iranian drone carrier at sea

Dispatch No 42 – Automation Nation

Mike Schuler
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December 14, 2024

gCaptain Club

Dispatch No. 42


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

HII's Ingalls Shipbuilding division successfully undocked USS Zumwalt (DDG 1000) on Friday, December 6, 2024. Photo courtesy HII
HII’s Ingalls Shipbuilding division successfully undocked USS Zumwalt (DDG 1000) on Friday, December 6, 2024. Photo courtesy HII

Top Stories

Trump Wades into Port Labor Dispute

President-elect Donald Trump has weighed in on the ongoing clash between the International Longshoremen’s Association (ILA) and the U.S. Maritime Alliance (USMX), siding with dockworkers against port automation.

In typical Trump fashion, he blasted automation on social media, describing it as a raw deal for American workers. “I’ve studied automation, and know just about everything there is to know about it… The amount of money saved is nowhere near the distress, hurt, and harm it causes for American workers.”

In keeping with his “America First” agenda, he criticized foreign port employers for having made a “fortune” by being given access to U.S. markets. “They shouldn’t be looking for every last penny knowing how many families are hurt,” he said.

Trump ILA statement

USMX maintains that modernization boosts efficiency, safety, and capacity, ultimately benefiting workers and the U.S. supply chain and economy.

With the critical January 15, 2025, deadline looming, both sides are digging in their heels as the battle over the future of automation, with East and Gulf Coast port operations hanging in the balance.

American Convoy Attacked Twice in Gulf of Aden

In another high-stakes showdown in the Gulf of Aden, the USS Stockdale and USS O’Kane intercepted a barrage of Houthi-launched weapons while escorting three U.S.-flagged merchant ships from Djibouti. The weapons included drones and an anti-ship cruise missile, though no injuries or damage were reported.

This attack mirrors a similar incident from late last month, when the same destroyers intercepted missiles and drones targeting what appeared to be the same American vessels en route to Djibouti.

As geopolitical tensions continue to disrupt maritime trade routes, President-elect Trump has yet to reveal his plans for addressing the Houthi threat and restoring freedom of navigation in the Red Sea region.

Jersey Drone Mystery Deepens

AI image of an Iranian drone carrier at sea

New Jersey Congressman Jeff Van Drew made waves this week with a bold claim that Iran has deployed a drone mothership off the U.S. East Coast, allegedly behind a string of puzzling drone sightings in the state. The Pentagon quickly shot down (pun intended) Van Drew’s assertion, denying the presence of any Iranian vessel off U.S. shores.

Meanwhile, another New Jersey lawmaker, Congressman Chris Smith, has urged the Defense Department to investigate after a U.S. Coast Guard officer supposedly briefed him about an incident where more than a dozen drones closely pursued a USCG lifeboat off the Jersey Shore.

Though Iran is expanding its naval drone capabilities with vessels like the Shahid Bagheri, experts and satellite trackers confirm Iran’s two known drone carriers remain anchored off the country’s coast. As for the origin of New Jersey’s drone mystery? It’s still up in the air.

FMC Presses Pause on Premier Alliance

The U.S. Federal Maritime Commission (FMC) has hit the brakes on the Premier Alliance proposal from ONE, HMM, and Yang Ming, delaying its debut originally slated for December 12. The FMC’s request for additional information (RFAI) aims to dig deeper into the alliance’s potential competitive impacts.

The two-week public consultation period is intended to seek clarity on details missing from the original filing. Analysts note the alliance is still targeting a February launch, but for now, the carriers continue under THE Alliance’s vessel-sharing agreement.

Fifteenth Time’s The Charm

The European Union has given initial approval to its 15th sanctions package against Russia, aiming to tighten restrictions on Moscow’s oil exports and military supply chains. The package includes penalties on 45 additional Russian oil tankers and firms aiding Russia in circumventing existing sanctions, as well as asset freezes and travel bans for over 50 individuals and nearly 30 entities.

Despite these efforts, the Kremlin continues to rely on this covert fleet to sell crude above the $60 per barrel cap, funding its war in Ukraine. With China and India as key buyers, the fleet’s secretive operations, including falsified data and ship-to-ship transfers, remain a thorn in the EU’s efforts to curtail Russian oil profits. Meanwhile, Brussels braces for potential ecological fallout from these ticking time bombs at sea.

EU leaders will discuss the measures and broader support for Ukraine at next week’s summit in Brussels.

Jones Act Pressure Mounts

A newly uncovered government filing has revealed details of the European Union’s work to challenge the century-old Jones Act, a cornerstone of U.S. maritime law. According to a newly unconfirmed government filing, a Brussels-based company operating under the EU delegation to the U.S. is working on a multi-faceted project to highlight the Act’s alleged downsides, including higher costs and market monopolies.

The Jones Act mandates that goods transported between U.S. ports must sail on American-built and registered ships, a policy the EU argues hampers European access to the U.S. maritime markets like offshore wind and dredging. “Erroneously” leaked details of the campaign, which includes TikTok videos, closed-door sessions, and anti-Jones Act op-eds, raised eyebrows for its supposed connection to the U.S.-based CATO Institute, a vocal opponent of the Jones Act, although the think tank has firmly denied any involvement in the plan. 

As lobbying in preparation for the new administration ramps up, domestic maritime policy could face new scrutiny under the Trump Administration. We’re expect more maritime policy debates to make waves in the near future.

Russia’s Northern Sea Route Hits New Highs

Despite escalating Western sanctions, Russia’s Arctic shipping soared in 2024. The Northern Sea Route (NSR) recorded 97 transits and nearly 3 million tons of cargo, a 50% increase over last year. Total cargo on the route reached a hefty 40 million tons, with trade between Russia and China dominating at 95% of transit traffic.

China imported 1.9 million tons of crude oil via the NSR, up 30%, as 16 ice-class tankers braved icy waters. Bulk carriers added nearly 900,000 tons of iron ore, coal, and fertilizers, exclusively bound for China.

Container shipping also saw a milestone year, with 17 voyages, including the debut of Panamax container ships bypassing the Suez Canal. Russia’s nuclear icebreaker fleet worked overtime to keep the route navigable, and its newest vessel, Yakutiya, began trials this week.

With plans to grow its nuclear fleet, Russia is doubling down on Arctic ambitions—weather and geopolitics be damned.


Weekend Reading

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