Government shutdown having minimal impact on maritime industry so far

As the government shutdown enters its second week, it remains business as usual on the inland waterways and at the nation’s ports, while mariners will find offices shuttered for certain Coast Guard services.
 
The Corps of Engineers, which operates and maintains the inland river lock and dam systems, has furloughed 1,119 employees, just a fraction of its workforce, and is keeping all navigation systems operating normally as they are considered essential services for commercial navigation. Also exempted from closure are the Corps’ flood protection, emergency response readiness, and other functions funded by prior-year or multi-year appropriations.
 
The closure of the Corps’ regulatory offices, however, means that permits for dredging and other waterways projects are on pause, while continuation of dredging work in ports and waterways depends on how those projects are funded: if money comes through annual appropriations, work has been stopped, but if funded through multi-year budgets or the Harbor Maintenance Trust Fund, work goes on as usual.
 
Port operations across the country have not felt much impact, as most ports are funded privately or by state and local governments, and essential federal personnel like Customs and Border Protection officers continue to work without pay. All of the nation’s major ports report no disruptions in their operations so far.
 
The Coast Guard is performing its national security and lifesaving operations, as uniformed personnel continue to maintain essential services, according to Renee Coleman, a Coast Guard spokeswoman. “Other activities will be reduced or paused until funding is restored, which will limit our capacity to fully maintain mission readiness,” she said.
 
For example, the National Maritime Center, which reviews and issues mariner credentials, is closed until further notice, including all Regional Exam Centers. This means that all exams have been cancelled and credential reviews have been put on hold.
 
If the shutdown persists, the American Waterways Operators (AWO) said it will request blanket credential validity exemptions to address the suspension of application processing and the backlog of applications when operations resume, so that existing mariners can continue working.
 
AWO also said they have confirmed that the Coast Guard will continue to provide vessel inspection services and execute its marine safety enforcement and waterways management missions. It is trying to determine the impacts of other services such as the Vessel Response Plan, Vessel Security Plan, and plan reviews.
 
The U.S. Merchant Marine Academy (USMMA) in Kings Point, N.Y., is operating normally as “an essential function.” After a government shutdown in 2013, when the school was closed and students were sent home, Congress passed legislation assuring that future USMMA operations would not be affected by federal funding lapses. State maritime schools are largely funded by states and are open and experiencing little impact.
 
The Maritime Administration is essentially closed, except for essential functions like securing government vessels.
 
The last government shutdown in 2019 lasted 35 days, and the long duration caused significant disruptions at that time. The Coast Guard furloughed 10,000 employees without pay, and active duty members who stayed on the job were not paid while they worked. Many permits and inspections piled up, causing big backlogs when funding resumed.