The new US presidential administration may not be that friendly to the shipping industry due to planned budget cuts and potential trade barriers, says Blank Rome partner Matthew Thomas.
He presented his views during a panel discussion at the Connecticut Maritime Association's Shipping 2017 conference in Stamford.
President Donald Trump has wonindustrypraise for stocking his cabinet with shipping names such as Transportation Secretary Elaine Chao and Commerce Secretary Wilbur Ross. But the actual policies coming down from the White House may put up some hurdles for shipping.
Thomas pointed to Trump's recent budget proposal, which proposed a $1.3bn cut to the US Coast Guard (USCG), as having a direct impact on commercial shipping. Vessel inspections could face cutbacks, potentially slowing vessel transits.
Cuts to long-term projects such as rebuilding the USCG's ice breaker fleet could impact nascent commerce and shipping through Arctic waters.
The budget cuts "doesn't leave us optimistic about other Coast Guard priorities," Thomas said.
Even Chao's agency, the Department of Transportation (DOT), faces a 13% cut in its budget. DOT programmes such as the TIGER Discretionary Grants, which invests in intermodal transportation projects, could face cuts that would impact shipping.
"It's hard to square such cuts with promises for additional infrastructure spending," Thomas said.
Other Trump policy proposals also pose risks to shipping on the cargo side. Thomas says the risk of new tariffs and anti-dumping measures could impact seaborne trade flows for everything from dry bulk commodities to containerised goods.
Likewise, the proposed border adjustment tax could impact volumes of crude oil brought in from overseas sources.
Such measures "could impact volumes of cargoes," Thomas said.
For more news from the Connecticut Maritime Association, Capital Link and other events this week, click here.
