Executive Commentary |
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“ Relying on litigation to create the certainty needed for long-term investment and sound business decisions is an unstable foundation.”
Marcus L. Arky
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in the late third and fourth quarters. We’ ve also seen adjustments to meet new government regulations, while carriers continue expanding their fleets.
Year-over-year indicators show only a slight reduction in 2024 volumes, still well above pre-COVID levels. As reported by the Journal of Commerce, 2024 was defined by pre-buying; in 2025, that inventory flowed through the supply chain, with import activity expected to return to normal by 2026.
The broader economy remains stronger than many perceive— the stock market is at historic highs and trade fundamentals point toward renewed growth ahead.
Rather than view this deceleration as a downturn, the industry should use it as a reset: to invest in areas of improvement without the strain of record volumes. The focus should remain on long-term competitiveness and workforce development.
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This is a moment for recalibration, not retreat— strengthening the foundation for the next phase of sustainable growth in shipping.
Metro Group Maritime
Marcus L. Arky
CEO www. mgmus. com
A chaotic regulatory environment is exacerbating a downward cycle in shipping. The industry faces a seesaw of regulatory and governmental pressures, ranging from tariff volatility and fees on Chinese vessels calling on US ports to inconsistent decarbonization policy at the global level. What
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appears as progress in one area often collides with confusion in another, leaving shippers, carriers and intermediaries sailing blindly through the regulatory landscape.
The recent ruling by the US Court of Appeals for the District of Columbia Circuit in the World Shipping Council’ s challenge to the Federal Maritime Commission’ s( FMC’ s) demurrage and detention billing rule underscores this unpredictability. In finding the FMC’ s exclusion of motor carriers from direct billing“ arbitrary and capricious,” the court reaffirmed a simple but critical principle: regulatory policy must be grounded in its own logic. The policy was flawed from the start, but it required legal action to remedy it. There is also another FMC-related matter before that court, in which an ocean carrier and trucker are debating whether D & D can be charged for days when the terminal is closed. Relying on litigation to create the certainty needed for long-term
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