IMO Delays Global Shipping Carbon Tax: Impact on Washington State Maritime Industry

The extraordinary session will be reconvened in 12 months’ time.

The International Maritime Organization (IMO) voted on October 17, 2025, to delay adoption of the world’s first global carbon pricing system for shipping by one year, following pressure from the U.S., Saudi Arabia, and other oil-producing nations. The Net-Zero Framework, which had majority support (63 countries in favor during April’s vote), would have required ships to pay fees for exceeding carbon intensity targets, generating up to $15 billion annually starting in 2030. The delay vote passed 57-49, with 21 abstentions, after the Trump Administration reportedly threatened retaliatory tariffs against developing nations supporting the framework.

Key Details

  • Original timeline: Framework was set to enter force in March 2027; now delayed until at least October 2026 vote
  • Mechanism: Ships exceeding emissions targets would pay fees; efficient vessels could earn tradable credits
  • Industry impact: Creates uncertainty for investments in decarbonization technologies and alternative fuels
  • Opposition tactics: U.S. and Saudi Arabia attempted procedural changes to make future adoption more difficult

Washington State Context

Port of Seattle Commissioner Fred Felleman’s Response:

Despite the IMO’s postponement, Port of Seattle leadership emphasized local commitment to climate action. Commissioner Felleman stated: “Our environment and economy cannot afford any further delay to address the most pressing issue of the day.” He reaffirmed that the Port of Seattle will continue working with Pacific trade industry leaders, noting that “some of the world’s most successful and progressive industries are based in the Pacific Northwest,” and pledged to provide infrastructure support to help companies meet their greenhouse gas emission goals regardless of international delays.

Regional Implications:

For Washington State’s maritime industry, a critical gateway for Pacific trade, this delay creates a complex situation. While the postponement may provide short-term cost relief for shipping companies using Northwest ports, it also extends regulatory uncertainty that could hinder long-term investments in green maritime infrastructure and alternative fuel capabilities that Seattle and Tacoma have been positioning to support.

Weekly Roundup: Succession, Sanity, and Staying the Course

Vessel Traffic: Holding Steady, Trending Up

We recorded a 22% increase in overall commercial vessel arrivals this week, driven by bulk and container ships. That’s a healthy sign of activity, even as other indicators flash yellow.

Total Arrivals: 43 → 55
Notable gains:

  • Bulk: +64%

  • Containers: +29%

  • General cargo: +200%

Berth Arrivals: 47 → 59 (up 20%)

  • Seattle up 24%, March Point up 43%, Aberdeen and Anacortes back online

  • Port Angeles: 0 arrivals

Operations Snapshot

  • We continue to experience radio outages at Ellis Tower and are evaluating rerouting options.

  • Met with the incoming Coast Guard Sector Puget Sound Prevention Department Head to strengthen future collaboration.


Legislative Update: No Major Shifts This Week

Most priority bills have passed and are now awaiting effective dates. A few remain in review, and we’re watching closely for signs of a special session to finalize the state budget.

Bills Passed & Awaiting Implementation:

  • HB 1167 – Maritime education in career & technical programs (Effective 7/27)

  • SB 5281 – Nonresident vessel permits (Effective 9/1)

  • SB 5191 – Paid family leave for dockworkers

  • SB 5161 – 2025–27 transportation appropriations

  • HB 1511 – Ferry captain authority clarified (Effective 7/27)

  • HB 1414 – Student career access (Effective 7/27)

  • HB 1264 – Ferry system salaries

  • SB 5794 – Tax preference repeal (Marine Exchange opposes)

Bills We’re Monitoring:

  • SB 5160 / HB 1226 – Supplemental transportation budget

  • SB 5550 / HB 1324 – CCA-funded transportation investment

Under Review:

  • SB 5652 – Environmental equity in port communities

  • SB 5519 / HB 1652 – Low sulfur marine fuel standards

  • HB 1684, HB 1513, HB 1678 – Coastal, conservation, and infrastructure bills

Didn’t Advance:

  • SB 5248 – Bridge collision prevention

  • HB 1689 – Emissions at berth

  • HB 1288 – Outdoor rec & climate adaptation

Spotlight: Where Are All the Mariners?

We’ve got a succession crisis in maritime—and it’s not hypothetical. Pilots are aging out. Engineers are retiring. Tug captains and dispatchers are slowly slipping out of the workforce. And there’s no wave of new talent waiting in the wings.

At a recent Olympic Coast National Marine Sanctuary meeting, someone mentioned they couldn’t find a line handler for their research vessel. That’s not a blip—that’s a system strain.

If we don’t bring in the next generation, there will be:

  • No ships

  • No terminals

  • No ferries

  • No working waterfront

This industry gave me everything. A mission. A living. A life. And now, it’s our job to ensure someone else gets that same shot.

Help Us Build the Next Generation

We launched the John Veentjer Maritime Scholarship to break down barriers and open doors. These are unrestricted scholarships—fast, flexible, and designed to put money on target with as few speed bumps as possible.

We’re hosting a fundraiser cruise on June 12 aboard the Virginia V. Can’t attend? No problem. Just donate. It matters.

👉 DONATE OR JOIN US

Upcoming Events – Week of May 19

  • Monday – PNWER Cross-Border Supply Chain Workshop (Bellingham)

  • Tuesday – Puget Sound Marine Firefighting Commission (online)

  • Wednesday – ECHO Vessel Operators Committee

  • Thursday – Marine Insurance Association of Seattle: Day of Education

Final Word: Tariff Who? Tariff What?

The Trump Administration called for a 90-day tariff pause on Chinese imports—and the markets barely blinked. That tells you everything.

This isn’t trade strategy. It’s policy whiplash dressed up in populist cosplay. And once again, the people getting punished are port communities like ours—workers, exporters, logistics firms, and mariners.

If it feels like nobody wants to talk about this, but everyone is talking about it—you’re not imagining things.

The tide is shifting. Let’s keep our heads above water—and bring the next crew aboard while we still can.

April in Review: Steady Through the Storm

I’m exhausted by what’s happening in this little/big world. If it didn’t impact thousands of people, I could just go back to my garden.

But – no, here we are. So many things I can’t control but trying like hell.

April 2025 closed with 186 commercial vessel arrivals across Puget Sound and Grays Harbor — a modest monthly total, but one carrying deeper meaning.

Container traffic held its position at 58 arrivals, while tanker and bulk movements reflected slight softening. The return of cruise ships — 13 in total — added seasonal energy to Seattle’s waterfront. Tacoma led all ports with 78 arrivals, driven by RO/RO and container throughput. Seattle followed with 58, supported by a mix of container, bulk, and passenger traffic.

Foreign arrivals remained steady at 118. Japan, South Korea, Canada, and China were the region’s top overseas trading partners — a reminder that despite rising protectionist rhetoric, our ports remain global in purpose.

While vessel traffic ticked down 11% last week, the Marine Exchange continues to provide up-to-the-minute maritime intelligence to help our partners plan, coordinate, and adapt.

Legislative Wrap-up

Several key maritime bills were signed or delivered to the Governor:

  • HB 1167 (Maritime CTE education) – Supported

  • HB 1264 (Ferry salary support) – Supported

  • SB 5281 (Nonresident vessel permit access) – Supported

  • SB 5794 (Stevedore tax hike) – Opposed, but passed. This is a big deal because we fought hard to get the stevedore provision stripped from this.

Looking Ahead

With geopolitical tensions rising and tariff risks expanding, we’re forecasting a potential 40% reduction in import volume over the coming months. The threat isn’t just policy — it’s uncertainty. As your regional watch center, we’re focused on clarity and continuity.

Join Us

Fundraiser Cruise – JV Maritime Scholarship.
📅 May 8 – Coast Guard Foundation Dinner
📅 May 9 – Propeller Club Maritime Day Breakfast (Gold Sponsor)

Weekly Roundup: Strong Vessel Traffic, Legislative Wins, and Navigating Uncertain Waters

This week brought a welcome boost to vessel activity across Puget Sound, along with some important progress on the legislative front. As spring weather delivered record-breaking warmth, the Marine Exchange stayed busy supporting ship arrivals, hosting industry partners, and advancing critical maritime policy work. Here’s a closer look at what happened this week:

Vessel Traffic Surges 27%

Vessel arrivals jumped significantly, with a 27% increase compared to last week. Container traffic rose 29%, vehicle carriers surged 78%, and tanker arrivals grew by 22%. Passenger traffic also picked up as cruise season edges closer, recording a 67% rise in vessel counts.

Seattle and Tacoma continued to anchor the region’s activity, each seeing double-digit increases in port arrivals. March Point also saw a 43% boost, reinforcing the importance of our fuel supply chain hubs.

It’s an encouraging sign that Puget Sound remains an essential gateway, even as global shipping markets wrestle with rising uncertainty.

Scholarship Fundraiser: Cruise Aboard the Virginia V

We’re thrilled to announce the launch of the JV Maritime Scholarship Fundraiser Cruise, happening June 12th aboard the historic Virginia V on Lake Union.

This event supports maritime career pathways for the next generation. Come enjoy an evening on the water and help us invest in the future of our industry! Learn more and register here.

Community Connections: Society of Naval Architects & Marine Engineers (SNAME)

This week, we hosted members of SNAME for an information exchange and networking event. The Marine Exchange is proud to foster collaboration across disciplines, bringing together operational expertise, engineering innovation, and academic leadership to strengthen the maritime sector.

Legislative Update: Wins for Washington’s Maritime Future

This week delivered several key victories in Olympia:

  • SB 5794: Major opposition success — harmful tax provisions removed before passage.

  • HB 1264: Delivered to the Governor — supporting collective bargaining for ferry workers.

  • Career and Maritime Education Bills: Creating new pathways into maritime jobs — both bills heading to the Governor’s desk.

  • Vessel Permit Modernization and Paid Family Leave for Dockworkers: Progressing with strong bipartisan support.

These outcomes reflect months of advocacy and coalition-building. We’ll continue tracking remaining bills as the session closes.

Technology & Data: AIS and Cloud Modernization

All 7 of our AIS receiver towers remain fully operational with 99.9%+ uptime. Work continues to migrate our ship database to a new cloud platform — setting the stage for more advanced API connections, automated backups, and greater system resilience.

We’re still awaiting a hardware repair at Ellis, but no major disruptions have been noted.

Spotlight of the Week: Red Light/Green Light on Trade

Global trade is flashing warning signals. Between new tariff threats, rising gold prices, currency volatility, and skyrocketing national debt, the economic backdrop feels increasingly unstable. Goldman Sachs just doubled its probability estimate for a U.S. recession in the next year.

While it’s too early to predict exactly how this will hit Washington’s ports, we’re closely watching indicators like:

  • Rising blank sailings (canceled voyages)

  • Increased abandoned cargo rates

  • Shifts in job reports and inflation rates

The Marine Exchange will stay vigilant, providing real-time insights and operational support as conditions evolve.


Thanks for staying connected with the Marine Exchange. We’re proud to serve the Puget Sound maritime community, ensuring safe, efficient, and resilient operations — no matter what waters we find ourselves navigating.

If you haven’t yet, don’t forget to reserve your spot for the Virginia V Scholarship Cruise!

Weekly Roundup: No Regerts, Cruise Season Arrives, Trade Turbulence, and Legislative Wins

By Patrick Gallagher, Executive Director, Marine Exchange of Puget Sound

As spring kicks into gear, I’m looking at apple blossoms, cherry blossoms, strawberry blossoms, and tomato plants already in the ground (what? – thank you, non-climate change weather patterns/#DOGEcuts/#sorrynotsorry).

We’re holding steady on ship counts this week, and I’ll take it just because ship counts have been somewhat in the near-term toilet for a couple of months — but the stories beneath the numbers show a dynamic and shifting maritime landscape. Cruise ships are returning to Seattle, but I’m really curious about next year’s bookings because almost all of these trips were booked at least 6 months ago when things made more sense. and the dollar still looked like the world currency. Next year is going to tell us a lot about how people feel about the international economy.

I, myself, hit the “I believe” button and dropped a ton of money on Spring Break to Hawaii this past week. Like the tattoo says, I have NO REGERTS.

Yes – I spent $215 one morning on omelets and bread in Kauai and couldn’t help but wonder if this is a harbinger of the future where a single egg costs $57 and flour is milled by hand in pure 1890’s style. – the last time America was great.


Vessel Traffic: Flat Numbers

While the overall ship count remained flat this week at 38 vessels, a few highlights stood out:

  • Cruise season officially kicked off with the arrival of two passenger vessels.
  • Bulk cargo arrivals increased by 33%.
  • Container ship calls fell by 40%, continuing the erratic signals from global freight patterns.

Vessel Category Snapshot

Category Last Week This Week % Change
Bulk 6 9 +33%
Container 14 10 -40%
Passenger 0 2 +200%
Tug/ATB 2 3 +33%
Others Mostly flat or steady

Port Call Highlights

Notably, Aberdeen, Ferndale, and Indian Island each saw notable upticks in traffic. Port Angeles, on the other hand, saw no vessel tie-ups this week.


Legislative Front: A Strong Showing in Olympia

This was a pivotal week in the state legislature, with the Opposite House Cutoff passing and several key bills we supported advancing to the Governor’s desk.

Legislation We Support – Advancing Forward

  • SB 5191 – Paid family leave for dockworkers
  • SB 5281 – Extends vessel permits
  • HB 1414 – Improves student career access
  • HB 1167 & HB 1264 – Support maritime workforce & ferry worker salaries

Legislation We Opposed – Contained or Dead

  • HB 1689 – Emissions restrictions at berth — dead
  • SB 5794 – Public Utility Tax and stevedore tax proposals are being removed, avoiding steep cost increases

With the state still facing a budget deficit, a special session may follow the scheduled April 27 adjournment to reach a final agreement.


Technology & Operations Update

  • AIS Coverage: Our 7 tower network is fully operational, with a minor outage quickly resolved. The Ellis tower radio is now back online.
  • System Health: Ongoing database optimization continues. No anomalies or cybersecurity threats have been detected.

On the Horizon

  • Contributing to the Tribal Fisheries Lost Gear Committee
  • Hosting the Elliott Bay Design Group for a social/info session
  • Attending the SEASTR Fundraiser in Port Townsend
  • Preparing for the Harbor Safety Committee meeting on May 7th

🗓 Click here for the meeting link.


Spotlight of the Week: Hawaii, Trade Wars, and Monetary Systems

Last week I vacationed in Hawaii, reconnecting with longtime maritime colleagues. Over sunset conversations, the topics drifted from sea stories to the fragility of island economies — especially places like Hawaii that import over 90% of their food and feel the sting of trade uncertainty more acutely than most.

To wind down, I revisited Barry Eichengreen’s Globalizing Capital: A History of the International Monetary System. It opens with a thought-provoking reminder:

“The international monetary system is the glue that binds national economies together… It is impossible to understand the operation of the international economy without also understanding its monetary system.”

As we navigate uncertain global tides — from tariffs to shipping slowdowns — it’s worth remembering that the health of our maritime system is inextricably tied to how well we understand and adapt to these broader economic forces.

 

Weekly Roundup: Vessel Traffic Slows, Legislative Countdown, and a 90-Day Pause on Tariffs

Good afternoon everyone!

Communications Director Sara here, bringing you this week’s Marine Exchange roundup (Patrick is currently in Hawaii—and yes I can assure you, I’m just as jealous as you are).

It’s been a full week in Washington maritime as always, marked by shifting vessel traffic, ongoing work in Olympia, and a sudden (but for now temporary) pause on some of the international tariff pressure.

Let’s dig in.


Executive Summary

  • Vessel arrivals decreased 19% compared to last week.
  • Patrick Gallagher met with The American Waterways Operators and Sam Hendrickson (Senator Jamie Peterson’s office) this week to educate them on the real-world impacts of the stevedore tax (SB5794) on Washington maritime jobs & operations.
  • Tariffs uncertainty continues: On Wednesday, the Trump Administration announced a 90-day pause on most new tariffs—except those targeting China—raising fresh questions about global trade stability.

Vessel Traffic Snapshot

Category LAST WEEK THIS WEEK % Change
BULK 5 6 20%
CONTAINER 16 14 -13%
GENERAL 1 3 200%
OTHER 1 1 0%
RO/RO 2 3 50%
TANKER 12 7 -42%
TUG/ATB 3 2 -33%
VEHICLES 7 2 -71%

 


Situational Awareness

  • Weather: Mostly cloudy with rain across Western Washington’s marine zones. No significant fog or wind disruptions were reported.
  • Operational Disruptions: A brief power flicker on Tuesday impacted our offices but had no effect on maritime operations or data systems.

Legislative Engagement & Government Affairs

With just 16 days remaining in the regular session, activity in Olympia is accelerating. Budget talks are intensifying as lawmakers face a multi-billion dollar deficit, but it’s been another strong week for the Marine Exchange’s legislative priorities—five of our seven supported bills remain alive and moving.

Key Legislative Deadlines Coming Up
  • April 16 – Opposite House Cutoff
  • April 27 – Scheduled Sine Die Adjournment

Given the unresolved budget deficit, a Special Session is likely after April 27 to finalize a balanced budget.


Technology & Data

  • AIS Network Status: All 7 towers fully operational, >99.9% uptime. The radio in Ellis is temporarily down, but the team is currently working to restore it.
  • System Updates: Ongoing database optimization; no current anomalies or cybersecurity issues

Looking Ahead

  • The Harbor Safety Committee meeting link for May 7th is out and can be found here.
  • We are partnering with the Sea Scouts to get a blog post out about current updates, ongoing work, and funding help.
  • Preparations for the first annual John Ventjeer Youth Maritime Scholarship event are in the works. More information to come, but mark your calendars for June 12th, 4:30-7:30 PM.

Spotlight of the Week: Podcast with Representative Julia Reed

At the end of May Patrick and I had the pleasure of sitting down with Julia Reed, State Representative for the 36th legislative district, to discuss maritime updates for this session, what she is working on, and how maritime community members can stay in touch. Listen now wherever you get your podcasts!

We know there’s a lot of uncertainty right now—on the docks, in Olympia, and across the globe. Like many of you, we’re feeling the weight of it all. But please know this: we’re here. Whether you have questions, ideas, or just want to talk through something, the Marine Exchange is your partner.
We will continue to keep moving forward together.
Have a great weekend, everyone.

Sara Zeman
Communications Director, Marine Exchange of Puget Sound
sara@marexps.com

Weekly Roundup: Vessel Traffic Up, Legislative Crossroads, and “Liberation Day” Disrupts Global Trade

Good afternoon, Mis Amigos Maritimos —

This week at the Marine Exchange of Puget Sound, we observed modest uptick in vessel arrivals (hooray), delivered critical testimony in Olympia (hooray), and closely monitored global trade turbulence (boo) stemming from a bold new economic posture out of Washington, D.C.

Let’s dive into the details:


Executive Summary

  • Vessel arrivals increased 12% overall this week.

  • I testified in opposition to tax increases on stevedoring services (aka Senate Bill 5794).

  • April 2, now coined “Liberation Day,” introduced major shifts in global trade dynamics, with potential ripple effects for Washington’s ports.


Vessel Traffic Snapshot

Across all vessel categories, we saw an increase from 42 to 47 arrivals, led by tankers and container ships. The full breakdown:

Category Last Week This Week % Change
Bulk 7 5 -29%
Container 14 16 +14%
General 1 1 0%
RO/RO 2 2 0%
Tanker 9 12 +33%
Tug/ATB 2 3 +50%
Vehicles 6 7 +17%

Port-specific activity also showed a 20% increase in total dockings, with significant jumps in Cherry Point, Everett, and Olympia. Tacoma saw a slight decrease, while Seattle traffic rose by 27%.


Situational Awareness

  • Weather: Mixed conditions with generally clear skies in the Strait of Juan de Fuca and mild winds.

  • Disruptions: No maritime incidents reported locally.


Legislative Engagement

This week, I drove to Olympia and testified against SB 5794, which would sharply raise the cost of doing business on Washington’s working waterfront. The bill proposes a Public Utility Tax and increases in B&O tax on stevedoring—a move that could disproportionately harm port workers, especially in communities of color.

We remain committed to:

  • Supporting bills that promote maritime workforce development and economic resilience.

  • Opposing policies that add unnecessary burden to vital maritime services.

🎧 Listen to our new podcast episode featuring Reps. Julia Reed (coming next week!) and Greg Nance—discussing legislative priorities, career pathways, and what inspires their service—now live.


Technology & Data

  • Our AIS network remains strong: 100% of towers operational with >99.9% uptime.

  • Ongoing database optimizations continue to streamline ship movement tracking and port performance analytics.


Looking Ahead

  • April 8 marks the Fiscal Committee cutoff—a key moment in this year’s legislative calendar.

  • We’re finalizing participation in the ECHO Southern Resident Killer Whale Slowdown Program.

  • Preparing for the Harbor Safety Committee meeting on May 7—agenda to be released soon.


Spotlight: “Liberation Day” & Global Trade

April 2, 2025, now dubbed “Liberation Day,” saw the implementation of sweeping new tariffs under the Trump Administration—both blanket and targeted. While the immediate effects are still unfolding, early market indicators reflect volatility and uncertainty.

Washington’s maritime economy sits at a critical juncture. We are monitoring:

  • Freight rate fluctuations

  • Port call patterns

  • Trade index movements

Insights shared at this week’s joint Seattle/Tacoma Transportation Club meeting with the Federal Reserve were valuable—though no direct forecasts were given, the message was clear: flexibility and preparedness are more vital than ever.


Stay informed. Stay connected. And as always, thank you for your partnership in keeping our maritime gateway efficient, resilient, and future-ready.

– The Marine Exchange of Puget Sound

Full Steam Ahead: Marine Exchange Welcomes Azimuth, Eyes San Juan Lane & Cloud Migration

Keeping you informed about the latest developments in the maritime industry and our community.

Legislative Updates:

  • SB 5191: This bill clarifies paid family leave premium collection for dockworkers. It has passed the Senate with amendments and is now awaiting a hearing in the House Labor & Workplace Standards Committee.
  • HB 1264: Focused on ferry system collective bargaining units, this bill has passed out of committee and is scheduled for a public hearing in the Senate Transportation Committee on March 17.
  • HB 1167: Aiming to enhance educational opportunities for careers in maritime professions, this bill is scheduled for a public hearing in the Senate Early Learning & K-12 Education Committee on March 13.

Community Engagement:

  • Welcome Azimuth Offshore: We are pleased to announce that Azimuth Offshore, led by Founder & President Justin Smith, has joined the Marine Exchange. Discussions are underway for a collaborative podcast with Lena Gothberg from The Shipping Podcast to highlight maritime industry insights.
  • Whatcom Working Waterfront Coalition Recognition: Our efforts were acknowledged in the latest newsletter from the Whatcom Working Waterfront Coalition, underscoring our commitment to enhancing maritime operations in the region.

Initiatives and Collaborations:

  • San Juan Island Mariner Guidance Lane: We are coordinating with Washington Sea Grant to explore the establishment of a voluntary mariner guidance lane near San Juan Island, aiming to improve navigational safety and environmental protection.
  • Database Modernization: A demonstration is scheduled to transition our local database to a cloud-based server, enhancing data accessibility and security for our members.
  • ECHO Program Participation: Next week, we will communicate our intent to participate in the upcoming ECHO Program slowdown, contributing to the protection of marine life by reducing vessel speeds in designated areas.
  • Member Survey on Tariffs: We will be distributing a survey to gather insights on how current tariffs are impacting your operations. Your feedback is crucial for our advocacy and support efforts.

Industry News:

We remain committed to keeping our members informed and engaged. Your participation in our initiatives and feedback through surveys is invaluable as we navigate these developments together.

For more detailed information on legislative updates, please refer to the attached bill tracker.

Please stay tuned for further updates as we continue to monitor these developments.


Note: This newsletter is intended for informational purposes and reflects the latest available data as of March 14, 2025.

The Cost of Inaction: Why Freezing Port Infrastructure Grants Hurts Washington State and U.S. Competitiveness

The Trump Administration’s recent decision to pause federal infrastructure spending has thrown a wrench into the economic growth and modernization of U.S. ports. Specifically, $104,710,550 in Environmental Protection Agency (EPA) grants that were earmarked for Washington State’s ports have been put on hold, jeopardizing critical projects to improve efficiency, reduce pollution, and stimulate job creation.

This move is not just a bureaucratic delay—it’s a strategic misstep with serious economic and national security implications. While the U.S. hesitates, China continues to invest aggressively in maritime infrastructure, shipbuilding, and crane manufacturing, further solidifying its dominance in global trade. If Washington, D.C., does not act swiftly to reinstate these grants, we risk stalling economic growth at home and allowing China to fill the void where the U.S. retreats.

The Economic Power of Port Investment

Investing in port infrastructure isn’t just about improving facilities—it’s an economic multiplier. For every dollar invested, the nation yields $2 to $3 in return. These returns come in the form of job creation, increased trade capacity, and long-term economic growth. Port improvements lead to:

More efficient cargo movement– reducing bottlenecks and increasing throughput.

Job creation– both directly in port operations and indirectly in industries that rely on maritime trade.

Environmental benefits – reducing emissions through electrification and shore power infrastructure.

Pausing $105 million in federal funding to Washington’s ports means delaying these benefits. The grants, part of the Clean Ports Program, were designed to fund shore power deployment, upgrade infrastructure, and create jobs in the private sector. In particular, the $63 million grant to the Port of Anacortes, which was already signed, was set to redevelop an underutilized part of the port, modernizing operations and attracting private investment. Now, that progress is at a standstill.

Public-Private Partnerships Are the Key to Success

Ports operate at the intersection of public and private interests. Government funding alone cannot sustain the investment required for modernization—nor should it. Successful port expansion and efficiency improvements require public-private partnerships (PPPs) to maximize the impact of every dollar spent.

Private companies are eager to invest in modernized port facilities, especially regarding sustainability efforts like shore power, which allows ships to plug into the electrical grid instead of burning diesel fuel while at berth. However, these investments often depend on federal or state funding to build the foundational infrastructure.

Without federal backing, private partners may withdraw or delay their participation, leading to further stagnation and lost economic opportunities. The uncertainty created by freezing these grants is not just delaying progress—it is actively discouraging investment from stakeholders who depend on long-term stability in infrastructure planning.

China’s Maritime Dominance: A Threat to U.S. Competitiveness

While the United States debates whether to continue funding critical port infrastructure, China is not hesitating. The Chinese government heavily subsidizes its maritime sector, investing billions into port expansion, shipbuilding, and crane manufacturing. The result?

  • Seven of the top 10 busiest ports in the world are in China.
  • China builds nearly 50% of the world’s commercial ships.
  • The majority of the world’s port cranes are made in China.

By contrast, the U.S. has only two ports in the top 20 globally. Our shipbuilding industry continues to shrink, and without investment, our ports risk falling even further behind. The Bipartisan Infrastructure Law (BIL) and the Inflation Reduction Act (IRA) were steps in the right direction, but pulling back now only cements China’s advantage.

When the U.S. Retreats, China Fills the Void

The global maritime industry is not just about trade—it’s about national security and strategic influence. Ports are vital supply chain nodes, ensuring the efficient movement of goods and military readiness in times of crisis.

By allowing China to dominate shipbuilding, port infrastructure, and crane manufacturing, the U.S. is effectively ceding control over critical components of the global supply chain. If China controls the world’s ports and the equipment that moves cargo, it also gains leverage over international trade flows. This is a national security risk that cannot be ignored.

The U.S. has already seen how supply chain vulnerabilities can cripple industries, from semiconductor shortages to manufacturing disruptions. Our maritime infrastructure must not be the next weak link.

Washington’s Ports Need Federal Support—Now

The ports of Washington State play a crucial role in U.S. trade. The Northwest Seaport Alliance (NWSA), which includes the Ports of Seattle and Tacoma, is one of the nation’s largest container gateways. These ports handle goods from Asia, serving as critical economic hubs for not just Washington, but the entire country.

With over $104 million in EPA grants now in limbo, port projects that were set to drive economic growth, improve efficiency, and reduce emissions are now at risk. Specifically:

  • The Port of Anacortes was set to receive $63 million for shore power and redevelopment, bringing new jobs and economic opportunities.
  • The Port of Bellingham had funding allocated for key infrastructure improvements.
  • Other Washington State ports were counting on this funding to modernize their facilities and remain competitive.

The ripple effect of these delays will be felt beyond the maritime sector. Small businesses, logistics companies, and manufacturers all depend on efficient port operations to move goods across the country and internationally.

A Call to Action: Restore Port Funding and Keep America Competitive

The federal government must act now to reinstate these critical port grants. Pausing investment in maritime infrastructure is not just an economic misstep—it’s a failure to compete globally.

Restore the $104+ million in EPA grants to Washington’s ports.

Maintain a commitment to public-private partnerships that drive investment.

Recognize maritime infrastructure as a national security priority.

The time for hesitation is over. Washington’s ports—and ports across the U.S.—cannot afford uncertainty. The investments made through the Bipartisan Infrastructure Law were designed to keep America competitive. Now, as China continues to expand its dominance, we must double down on those investments, not retreat from them.

The bottom line? We won’t quietly let this happen.

It’s time to restore funding and keep our ports—and our economy—moving forward.

U.S. Trade Tariffs and Potential Impacts on Washington’s Maritime Industry

On February 4th, 2025, new U.S. tariffs will take effect, impacting trade with Canada and China. Originally, these tariffs were due to impact trade with Mexico as well, but this has been deferred for one month as Mexico has agreed to surge security personnel to the border in exchange. These measures introduce significant changes to import costs and supply chain logistics, which will have direct implications for Washington State’s ports, trade flows, and maritime operations.

Summary of Key Changes:

  • A 25% tariff on all Canadian and Mexican imports, except for energy products, which will be subject to a 10% tariff.
  • A 10% additional tariff on all Chinese imports.
  • Elimination of the de minimis rule for Canada and Mexico, meaning that low-value shipments that previously entered duty-free will now be subject to tariffs.
  • Cargo loaded before February 1st is exempt from the new tariffs.

Response and Retaliatory Measures:

  • Canada will impose 25% tariffs on $30 billion worth of U.S. goods, escalating to $155 billion in three weeks. The affected products include agriculture, alcohol, lumber, household goods, and aerospace components.
  • Mexico has negotiated a one-month extension of the U.S. tariffs by agreeing to deploy additional security personnel to the border. Details of Mexico’s potential countermeasures have not yet been announced.
  • China has filed a World Trade Organization (WTO) complaint and is preparing retaliatory countermeasures that may affect Washington’s aerospace, agricultural, and technology exports.

Potential Impacts on Washington’s Maritime Industry

Washington State is one of the most trade-dependent states in the U.S., with nearly one-third of jobs tied to international trade. The tariffs and retaliatory measures will likely have far-reaching effects on maritime commerce, including:

✔️ Higher costs for Washington importers, particularly in retail, electronics, and construction materials.
✔️ Disruptions to key agricultural exports, including apples, cherries, seafood, and dairy, which rely on Canada, Mexico, and China as major markets.
✔️ Slower container traffic at the Northwest Seaport Alliance (NWSA), which already faces challenges from shifting global trade routes and supply chain disruptions.
✔️ Increased operational uncertainty for shipping companies, freight forwarders, and terminal operators, as businesses re-evaluate sourcing and trade strategies.

What’s Next?

The executive orders authorizing these tariffs include provisions for further increases should Canada, Mexico, or China introduce additional retaliatory measures. Given the strategic importance of international trade to Washington State, the Marine Exchange of Puget Sound will continue to monitor developments and coordinate with industry stakeholders to assess potential impacts.

With additional uncertainties such as the ongoing Red Sea crisis and global shipping disruptions, Washington’s maritime industry must remain agile and prepared for shifts in trade patterns.

The Marine Exchange will provide ongoing updates and encourages stakeholders to remain engaged as these policies unfold.

The Path Forward: Uncertainty and Opportunity

Despite these challenges, Washington has a strong tradition of trade leadership and economic adaptability. Our maritime industry, ports, and businesses must:

  • Engage with policymakers to advocate for trade policies that protect Washington’s economic interests. I’ll be in Olympia tomorrow to testify on HB 1689, which proposes fully adopting California Air Resource Board (CARB) standards for ocean-going vessels at berth here in Washington.
  • Diversify markets and trade routes to reduce reliance on any single country or region. If we are to leverage our maritime industry as a means of diversification, we can’t afford to lose more industrial capacity. The Marine Exchange has opposed the City of Seattle’s proposed rezoning of maritime industrial lands and is engaged with the Seattle City Council.
  • Leverage maritime innovation to remain competitive in an increasingly complex trade environment. We’re launching an online career development center this year and bringing back the monthly agent/ops meeting that went away during COVID. Now is a time to double down on community and cooperation.

For further information, please contact us.

Hold Fast.