U.S. Maritime Policy Needs A Captain
The appetite to participate in the U.S. maritime sector’s revival has been insatiable over the past few months. I’ve heard from seemingly everyone—real estate developers, private equity funds, family offices, foreign shipowners—all curious to know how they could get involved.
My advice to each of them was the same: wait.
In elaborating, I’d point out that, while I am very supportive of U.S. maritime revitalization initiatives, it seemed premature to place capital at risk on the expectation of future government support and subsidies.
The SHIPS for America Act––which contains the most concrete prescriptions for government spending to bolster the domestic maritime sector––still needs to go through a number of legislative hurdles (and likely changes) before it is passed into law…the timing of which is uncertain, at best.
The White House was proactive when issuing an Executive Order on “Restoring America’s Maritime Dominance.” However, with the news this week that Ian Bennitt left his role on the National Security Council, it isn’t clear who in the administration is responsible and accountable for maritime policy.
Elsewhere in D.C., we are still waiting on a date to be set for the confirmation hearings of Stephen Carmel as the Administrator of the U.S. Maritime Administration. (Don’t hold your breath. We’ve been waiting since March 25 if you start the clock when Brent Sadler was put forward as the original nominee, or since May 7 if you don’t.)
U.S. maritime policy seemingly has no captain, and it’s causing headaches for early movers who committed to investing in the sector—even the most well-connected, deep-pocketed players.
Take CMA CGM CEO Rodolphe Saade, who in March met with President Trump in the Oval Office to announce his $20 billion commitment into the American maritime sector over the next four years. Now, according to John Konrad of gCaptain, Saade wrote to Trump “saying he’s not getting the support he needs to move forward.”
If the CEO of one of the world’s largest shipping companies who was able to (1) secure a meeting with the President in the Oval Office, and, (2) commit $20 billion can’t get the support he needs, what are the prospects for smaller investors with fewer connections and shallower pockets?
Recent events have given me further reason to repeat my earlier advice to investors looking to capitalize on current political interest in the U.S. maritime sector—wait.
Separately, if you’re reading this and you’re the person responsible for U.S. maritime policy please reach out. I look forward to being proven wrong!
