At the end of the March, IAM joined over 200 shipper focused organizations in formal comments to the USTR in opposition to proposed ocean container fees for Chinese built ocean carrier ships. The Administration’s proposal includes fees of up to $1.5 million per port entrance for Chinese-built vessels every time they pull into a U.S. port.
As noted in the comments, IAM shares the goal of finding remedies to address China’s dominance in the maritime industry in order to revitalize the U.S. shipbuilding industry, however the fees (as proposed and structured) are most likely to be passed onto the impacted shippers and cargo heading to the U.S. Of note, this has been one of the very few opportunities this year to provide comments on Administrative actions this Congress.
Government Accountability Office (GAO) Report Due on April 1st to the Senate and House Armed Services Committees
As many IAM members are aware, the GAO Report on the Global Household Contract (GHC) was due to the Senate and House Armed Services Committees by April 1st.
Points of interest to be addressed in the Report include:
• Extent to which USTRANSCOM has developed an effective process for documenting and monitoring GHC performance
• Risk mitigation, addressing deficiencies or challenges experienced during the initial GHC implementation phase, and utilization of feedback from servicemembers and TSPs
• The extent to which the single property manager is securing and providing capacity under GHC to sufficiently meet the Department’s relocation requirements and small business goals, and to reduce impacts to military readiness and quality of life
• Baseline cost and performance comparisons between the GHC and current Tenders of Service
The final version of the FY 2025 NDAA ordered TRANSCOM to brief Congress by November on the performance of the GHC during the 2025 summer peak moving season. The release of the GAO Report on the GHC to the public is TBA, after review by Congress. IAM staff continues to seek additional information on the GHC, and has followed up with Committee staff to determine if the GAO Report has been received. IAM is also seeking meetings on Capitol Hill with SASC and HASC personal offices in the coming weeks to discuss the GHC.
U.S. Federal Motor Carrier Safety Administration (FMCSA) Regulatory Efforts
While there has been relatively little activity on the regulatory front in 2025, in remarks at public venues last month, officials stated their intent to update and modernize the U.S. motor carrier registration system later this year, with a focus on identity verification and APP use, shifting away from paper formats for most requirements.
Of note, the MC numbers used by U.S. motor carriers will remain in place, a change from information provided during 2024 webinars on the to-be-developed registration system, where a shift from MC to DOT only numbers was presented to stakeholders. The FMCSA is also continuing to review and plan updates to the Safety Measurement System (SMS), which will also require rulemaking and additional public input.
If you have any questions about these or other issues not highlighted, please reach out to Bryan Vickers, bvickers@pacellp.com, 703-403-2882, with IAM’s Regulatory and Legislative team.