Trump's maritime order to reshape US logistics, chemical supply chains

President Donald J Trump has signed a landmark Executive Order aimed at restoring US maritime strength. The order introduces a Maritime Action Plan (MAP) to revitalise shipbuilding, upgrade port infrastructure, and reduce reliance on China in key maritime sectors. This move is set to reshape the logistics industry by promoting self-reliance, addressing inefficiencies, and reinforcing national maritime security.

Maritime reform and chemical supply chains

With the introduction of the Maritime Action Plan (MAP), chemical manufacturers can expect improved domestic shipping reliability. A stronger US-flagged fleet and revitalised port infrastructure could lead to fewer international bottlenecks and reduce dependence on Chinese-built ships, containers, and cranes—equipment critical to chemical exports and imports.

Boosting domestic shipping capacity

A central component of the order involves expanding the fleet of US-flagged commercial vessels operating both internationally and domestically. For logistics firms, this expansion presents new opportunities for capacity growth and reduced dependence on foreign shipping routes—particularly in times of geopolitical disruption.

The plan also aims to revitalise the US shipbuilding sector through public-private investment incentives, a move logistics leaders believe could improve service availability and reduce delivery lead times across domestic waters.

Shifting global supply chain dynamics

By challenging China's near-monopoly on shipbuilding—China currently produces 74 per cent of the world's ships, compared to just 0.2 per cent by the US—the administration’s actions may alter global shipping dynamics. As trade policies shift, logistics providers could face changes in freight availability, pricing volatility, or tighter controls on Chinese-manufactured shipping components.

Simultaneously, the administration is working with international allies to disrupt China’s non-market trade practices, potentially creating new trade routes and opportunities for US-aligned supply chains.

Current maritime industry stats

- Only 0.2 per cent of world ships built in the US

- 0 per cent of global containers & cranes built domestically

- High reliance on Chinese port software

Impacts on cargo routing and costs

One of the most immediate implications for logistics companies will be the enforcement of the Harbor Maintenance Fee and related charges on foreign cargo routed through Canada or Mexico. This measure is designed to eliminate circumvention tactics and level the playing field for US ports. However, it may also lead to route adjustments and increased shipping costs for operators that currently rely on indirect entry points. Companies may need to reassess logistics strategies to optimise compliance and cost efficiency under the new regulations.  

Enhancing port infrastructure and security

Logistics firms operating in or through US ports can expect increased reliability, improved throughput, and greater resilience to digital threats. This focus on infrastructure integrity is especially relevant as Chinese-built port equipment currently dominates the market, with 80 per cent of ship-to-shore cranes worldwide manufactured in China.

Strengthening the maritime workforce

The Executive Order also prioritises mariner education and workforce development through increased support for institutions like the US Merchant Marine Academy. By expanding training pipelines and career pathways, the administration aims to alleviate ongoing maritime labour shortages, which have posed challenges for shipping and logistics firms in recent years.

Pros and cons for the chemical sectors

Pros

• Improved Supply Chain Resilience: More reliable US-based maritime infrastructure benefits bulk chemical transport.
• Port Security Upgrades: Reduced cyber vulnerability in port operations.
• Incentive-Driven Growth: Tax breaks and investment zones near ports can encourage expansion.
• Workforce Development: Expanded maritime education can support specialised chemical logistics needs.

Cons

• Transition Costs: Adapting to new fee structures and rerouted shipping may increase short-term logistics costs.
• Volatility in International Trade: Challenges to China’s dominance could lead to unpredictable supply chain shifts.
• Compliance Complexity: Adjustments to new US maritime regulations may increase administrative burden.

Fibre2Fashion News Desk (VK)