Global Maritime Focus

Special Report

Second Trump term fears blow through breakbulk sector

By Autumn Cafiero Giusti

If President-elect Donald Trump delivers his agenda as promised , the breakbulk and project cargo sector could experience dramatic shifts related to offshore energy — from a push to ramp up oil and gas production to an all-out halt to offshore wind development — along with uncertainties surrounding import tariffs and shipbuilding efforts .

But those working within the sector are tempering expectations for what a second Trump term might mean .

At the Port of Beaumont in Texas , LNG plant construction on the US Gulf Coast has kept breakbulk and project cargo near capacity , and that ’ s likely to remain the same under Trump , according to Ernest Bezdek , senior director of trade development for the port .

“ We do not believe the change in administration will affect our business , as we have been busy now for several years ,” Bezdek told the Journal of Commerce .

Bezdek said there could be opportunities for increased volumes of crude oil moving through terminals and refineries in and around Beaumont , along with more construction of new heavy industry in southeast Texas .

“ If the new administration makes positive changes with regards to the oil industry , then that is always good for Texas ports , and we will benefit ,” he said .

Trump ’ s pledge to tighten rules on goods imported from all countries presents a potential challenge for cargo moving across US docks , Bezdek said . “ But those effects may not be felt for years . And we have experienced that when that happens , other opportunities arise ,” he said .

Bezdek also cited the federal Port Infrastructure Development Program for providing grant money to US ports to

President-elect Trump has vowed to end US offshore wind development “ on day one ” of his second term . Shutterstock . com fund infrastructure improvement projects . “ We are hopeful the new administration will see value in programs such as this ,” he said .

Charlie Papavizas , head of the maritime practice in the Washington , DC , office of Winston & Strawn , told the Journal of Commerce that a new administration could mean uncertainty for efforts to advance US shipbuilding . He cited the bipartisan “ Ships for America Act ,” sponsored by Sens . Mark Kelly ( D-Ariz .) and Mike Waltz ( R-Fla .), that aims to rebuild and expand the US-flag fleet engaged in foreign commerce .

“ Will the Trump administration look kindly on this effort ? That ’ s a big question , but it ’ s a question that would have faced anyone who ’ s the president because our industry , our shipyards , our maritime academies have atrophied to the point that some attention needs to be paid to this as a national security imperative ,” Papavizas said .

Gone with the wind ?

One looming question for the sector is the future of the fledgling US offshore wind industry , a key source of breakbulk and project cargo . In May , Trump pledged to write an executive order to end offshore wind projects “ on day one ” of his return to the White House .

“ It ’ s hard to imagine that it ’ s a positive ,” Papavizas said . “ And , therefore , we have to wait and see how much of a negative it will be .”

Jeremy Slayton , a spokesman for Dominion Energy , noted that the developer ’ s Coastal Virginia Offshore Wind project has “ overwhelmingly ” won bipartisan backing under multiple past state and federal administrations . The project , which is nearly halfway complete , is fully permitted at the federal level and is within budget and on schedule for completion in 2026 , he said .

“ President Trump , Gov . Youngkin and leaders from both parties agree on the importance of American energy dominance , maintaining our technological superiority and creating good-paying jobs for Americans ,” Slayton told the Journal of Commerce . “ We ’ re confident Virginia ’ s clean energy transition will continue with bipartisan support for many years to come .”

Following his election to a second term , US offshore wind groups pledged to work with Trump while highlighting the industry ’ s progress and voicing hope for continued development .

“ With President Trump in office , we have the opportunity to harness even more investment and measurable economic benefits for communities across the country ,” Oceantic Network President and CEO Liz Burdock said in a Nov . 6 statement .

Jason Grumet , CEO of the American Clean Power Association ( ACP ), noted that offshore wind installations grew by double-digit percentages in each year of Trump ’ s first administration .

“ ACP looks forward to working with the Trump-Vance administration to unleash American-made energy , deliver reliable power to the grid , grow the economy and enhance our national security ,” Grumet said in a statement Nov . 6 .

email : autumn @ autumngiusti . com www . joc . com December 2 , 2024 | Journal of Commerce 23