October 26, 2026

LATEST NEWS ...

— THE LATEST ON CAPITOL HILL. Congress is in recess through November’s midterm elections. The next voting day in both chambers is slated for Monday, Nov. 9, with lawmakers returning to a full plate of legislative items in the “lame duck” session. Of note, Congress is expected to take up consideration of the National Defense Authorization Act (NDAA; H.R. 8800), which passed the House in July with several SHIPS Act provisions related to shipbuilding and mariner training. Although these measures are absent from the Senate version, both chambers are expected to resolve differences between the two bills in the “conference” process. Reauthorizing surface transportation programs and enacting FY 2027 government funding, both of which lapse on Dec. 11, 2026, also remains a priority for lawmakers. The U.S. Department of Transportation (DOT) appropriations bill, which funds the U.S. Maritime Administration (MARAD), remains the best opportunity to secure funding for the Port Infrastructure Development Program (PIDP), whose advanced appropriations under the Infrastructure Investment and Jobs Act (IIJA) ended with FY 2026 on Sept. 30. The House bill (H.R. 9170) would provide roughly $538 million for PIDP by redirecting unused IIJA rail funds; the Senate has yet to release its version.

— U.S. SEEKS TO RETURN SANCTIONED TANKERS TO COMMERCIAL SERVICE. Recently, the U.S. Department of Energy Secretary Chris Wright said the Trump administration is authorizing sales of sanctioned oil tankers to investors who would refurbish the vessels and use them to transport non-sanctioned crude oil. The effort aims to expand available tanker capacity and ease supply disruptions stemming from the conflict in Iran and the restrictions through the Strait of Hormuz. Sec. Wright emphasized that the initiative would require them to stop carrying sanctioned oil and estimated that the effort could ultimately bring dozens or hundreds of vessels into the legitimate fleet, potentially easing pressure on shipping costs and fuel supplies.

— TREASURY SANCTIONS ENTITIES BACKING IRAN SHADOW FLEET. Last week, the U.S. Department of the Treasury announced new sanctions targeting a law firm, shipping agents, and vessel operators accused of facilitating Iranian commodity exports as part of Operation Economic Outcast. The action includes Panama- and Greece-based Karnakis and Karnakis, which Treasury says established shell companies used to conceal ownership of vessels transporting Iranian petroleum and petrochemicals, alongside shipping agents in Singapore and the UAE. Treasury also identified seven Panama-flagged cargo vessels and two UAE-flagged support vessels as blocked property. The measures freeze covered assets under U.S. jurisdiction and generally prohibit U.S. individuals from transacting with the designated parties, underscoring the administration’s continued focus on the legal, corporate, and port services supporting Iran’s shadow fleet. The designations underscore the role flag registries play in policing the shadow fleet: registries that screen owners and operators, verify insurance and ownership documents, and promptly deregister sanctioned vessels close the openings that shell-company networks rely on.

— ATTACKS ON SHIPPING ESCALATE NEAR STRAIT OF HORMUZ. At least 12 commercial vessels were attacked near the Strait of Hormuz in the week ending Oct. 16, according to reports from UK Maritime Trade Operations (UKMTO), the most since the conflict with Iran began on Feb. 28. U.S. Central Command said the containership GFS Pride was struck by an Iranian projectile on Oct. 15 and later sank under tow, and oil from a separate tanker attack reached UAE beaches last week. International Maritime Organization (IMO) Secretary-General Arsenio Dominguez said about 6,000 seafarers remain trapped in the region and 24 have died since the conflict began, and urged vessels not to transit the strait until their safety can be guaranteed.

— IMO NET-ZERO FRAMEWORK HEADS TOWARD DECEMBER DECISION. IMO member states are scheduled to reconvene on Dec. 4, following the Marine Environment Protection Committee’s Nov. 30–Dec. 3 session, to decide whether to adopt the Net-Zero Framework, which would set greenhouse gas fuel-intensity standards and a global emissions pricing mechanism for international shipping.

— ARMY CORPS TO OVERHAUL DREDGING AWARD PROCESS. The U.S. Army Corps of Engineers is restructuring its dredging operations through a new Enterprise Dredging Delivery Center (EDDC), which will coordinate planning, contracting, and scheduling nationwide. Local districts will continue identifying project needs, coordinating with ports, and handling engineering and environmental requirements. The effort aims to reduce administrative duplication, improve schedule reliability, and make more efficient use of available dredging equipment. The Corps is also exploring larger procurement packages and a “Scope Dredge to Budget” approach, under which contractors would compete on how much dredging they can complete within a fixed budget. An interim team began coordinating implementation in August, with the permanent center targeted for October 2027. The phased rollout will include continued engagement with ports and industry, including consideration of potential impacts on smaller and specialized contractors.

— LAWMAKERS URGE DHS TO INCREASE SCRUTINY OF COSCO VESSELS. Following public reporting that Chinese state-owned carrier COSCO used concealed equipment aboard its vessels to spy on military communications near the U.S. coastline, House Select Committee on China Chair John Moolenaar (R-MI), House Intelligence Committee Chair Rick Crawford (R-AR), and House Homeland Security Maritime Security Subcommittee Chair Carlos Gimenez (R-FL) sent a letter urging the Department of Homeland Security (DHS) to revoke COSCO vessels’ enrollment in the U.S. Coast Guard’s Qualship 21 program that allows for fewer inspections in U.S. ports. The lawmakers also asked whether the Coast Guard considers a company’s designation on the Department of War’s list of Chinese military companies when deciding Qualship 21 eligibility. COSCO has denied these allegations.

— HD HYUNDAI, KIEWIT PLAN NEW U.S. SHIPYARD. On Oct. 23, South Korea’s HD Hyundai and Kiewit Corp. announced a joint venture to build an advanced U.S. shipyard expected to create about 3,000 jobs, with construction slated to begin in 2027 and operations in 2029. The partners will explore building U.S. Navy support vessels, commercial ships, and ship blocks and modules for other American yards. The project is part of South Korea’s $150 billion pledge to invest in U.S. shipbuilding and comes as new BIMCO data show China won 74% of global newbuilding orders over the past year and holds 64% of the global orderbook, compared with 19% for South Korea and 6% for Japan.

— ADMINISTRATION UNVEILS AMERICA FIRST SEAFOOD STRATEGY. On Oct. 23, the Trump administration released its America First Seafood Strategy, building on the April 2025 executive order “Restoring American Seafood Competitiveness.” The strategy prioritizes rebuilding shipyards, docks, cold storage, and working waterfronts, and directs NOAA to review its Fisheries Finance Program and Capital Construction Fund to identify barriers to replacing aging fishing vessels with American-built boats. It also creates a voluntary “U.S.-Caught Seafood” designation for products harvested by U.S. fishermen on U.S.-flagged vessels. The strategy relies on existing programs, regulatory changes, and private investment rather than new federal spending.

— FIRST RUSSIAN DIESEL CARGOES HEAD TO U.S. According to reports, the Malta-flagged tanker Agioi Fanendes loaded about 40,000 metric tons of ultra-low sulfur diesel at Russia’s Baltic port of Primorsk on Oct. 22 that is expected in New York around Nov. 7, with a separate Russian diesel shipment expected in Norfolk on Nov. 2. The cargoes follow an arrangement President Trump announced on Oct. 9 to ease high diesel prices, for which he waived parts of a new U.S. sanctions law against Russia. If delivered, they would be the first U.S. imports of Russian refined products since the 2022 ban.

SHIPPING SHORTS —

• FMC proposes fees on Spanish-flagged vessels. Following an investigation into the Spanish government’s treatment of U.S.-flag vessels carrying cargo into Israel, the FMC proposed a $200,000 per-voyage fee on Spanish-flagged ships calling on U.S. ports. Public comments on the proposal are due on Dec. 14, 2026.

• Venezuela to host trade and logistics summit. From Oct. 28-29, 2026, U.S. and Venezuelan firms are set to host the SUVECOEX conference focused on rehabilitation of Venezuela’s logistics infrastructure and investment opportunities in the nation.

• USTR proposes extending Chinese port fee pause to January. On Oct. 23, the Office of the U.S. Trade Representative (USTR) issued a Federal Register notice proposing to extend its suspension of Section 301 port fees on Chinese-owned, -operated, and -built vessels, along with 100% tariffs on Chinese ship-to-shore cranes and duties on container trailers and parts, for two months, from Nov. 10, 2026, through Jan. 9, 2027. The proposal delivers on part of the trade truce U.S. Treasury Secretary Scott Bessent announced in September. China suspended its own retaliatory port fees on U.S.-linked vessels under the October 2025 trade agreement reached by Presidents Trump and Xi in Busan, South Korea. Comments are due by 5 p.m. ET on Oct. 30 (docket USTR-2026-0694).

• Jones Act Waiver to expire next month. The current waiver of the Jones Act is set to expire on Nov. 15, 2026, and covered cargo must be loaded aboard by 11:59 p.m. ET that day. The U.S. Department of Homeland Security (DHS) approved the current 90-day extension on Aug. 13, after the President announced it on Aug. 10, and the administration is expected to decide on a further extension.

• Panama Canal reports higher traffic, revenue. Last week, the Panama Canal Authority reported nearly 14,000 vessel transits in FY 2026, representing a 4 percent increase over the previous year. Amid improved rainfall and conservation measures, the Authority increased daily booking capacity to 33 slots effective earlier this month.

• FMC issues charge complaint final rule. On Sept. 1, the FMC issued a final rule confirming that charge complaints have no filing deadline and may be brought through the Interim Procedure, a formal complaint, or a small claims complaint, with the carrier bearing the burden of proving a charge is reasonable.

• D.C. Circuit hears Hamburg Süd challenge to FMC award. On Oct. 16, a D.C. Circuit panel of Judges Millett, Pillard and Walker heard oral argument in Hamburg Süd v. FMC, No. 25-1156, the carrier’s appeal of the Commission’s roughly $17.6 million award to shipper OJ Commerce for Shipping Act violations, including retaliation. Hamburg Süd argued the dispute belonged before a jury in an Article III court, though it conceded it had not raised those objections before the agency.

• U.S. and Denmark sign maritime cooperation MoU. On Oct. 23, Under Secretary of State for Economic Affairs Jacob Helberg and Danish Foreign Minister Lars Løkke Rasmussen signed a memorandum of understanding (MoU) on maritime cooperation. Under the President’s Executive Order on Restoring America’s Maritime Dominance and the Maritime Action Plan, the agreement aims to speed training of the U.S. shipbuilding workforce, attract Danish investment to U.S. shipyards, and give American shipbuilders access to advanced technology to build and repair vessels faster and at lower cost. The State Department and Denmark’s Ministry of Foreign Affairs will lead implementation, and the MoU is described as a first step toward a broader U.S.-Denmark maritime partnership.

• WRDA 2026 awaits Senate action. The House overwhelmingly passed the Water Resources Development Act of 2026 (H.R. 9497) by a 415-9 vote on Sept. 16. The bill authorizes Army Corps of Engineers projects for ports and harbors, inland waterways, flood and coastal storm risk management, and dam safety, including 131 new feasibility studies and 10 new construction projects. The Senate’s version (S. 4949) awaits a floor vote, making WRDA a priority for action in the lame-duck session.

• Long Beach posts busiest month on record. The Port of Long Beach moved 997,177 TEUs in September, up 25% year over year and the most in its 115-year history, as shippers responded to high diesel costs and Panama Canal restrictions. An extended gate program begins in late October ahead of a 16-month deck replacement on the Vincent Thomas Bridge starting Nov. 7.

• U.S. Surface Transportation Board sets UP–NS merger comment deadline. Comments on the revised Union Pacific–Norfolk Southern merger application are due to the Surface Transportation Board by Nov. 18, 2026, with responses due Feb. 16, 2027.

UPCOMING CONFERENCES AND MEETINGS —

• SNAME Maritime Convention, Oct. 28–30. The Society of Naval Architects and Marine Engineers holds its annual convention in Houston.
• Houston International Maritime Conference, Nov. 2–5. Port Houston hosts its fifth annual conference at the Hilton Americas-Houston, themed “Lessons from the Past. Strategies for the Future.” 
• Lou Sola to speak at LNG Bunkering Summit, Nov. 16–18. Former FMC Chairman Louis Sola, now a partner at Thorn Run Partners, will speak at the LNG Bunkering Summit North America in Orlando, Fla., themed “Securing LNG’s Future in an Uncertain Shipping Market.”
• IMO environment committee and Net-Zero vote, Nov. 30–Dec. 4. The IMO Marine Environment Protection Committee meets Nov. 30–Dec. 3, followed by a one-day extraordinary session on Dec. 4 to decide on adopting the Net-Zero Framework.
• AAPA Latin America, Dec. 1–4. The American Association of Port Authorities’ Latin America Congress convenes in Guatemala City.
• International WorkBoat Show, Dec. 2–4. The annual commercial marine show takes place at the Ernest N. Morial Convention Center in New Orleans.
• Rebecca Dye to receive Lifetime Achievement Award, Dec. 7. The Containerization & Intermodal Institute will honor FMC Commissioner Rebecca F. Dye with its 2026 Lifetime Achievement Award and Georgia Ports Authority CEO Griff Lynch with the 2026 Connie Award at its Connie Awards Luncheon.

KEY COMMENT DEADLINES —

• USTR China port fee extension: Oct. 30. 
• STB Union Pacific–Norfolk Southern merger: Nov. 18. 
• FMC proposed fees on Spanish-flagged vessels: Dec. 14.

Thanks for reading! Please feel free to reach out to Sam Diaz (sdiaz@thornrun.com) if you have any questions or thoughts about this week's stories, or to subscribe to this newsletter.

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