Trump and the Federal Maritime Commission: Impacts of a New Administration

Significant changes are expected at the Federal Maritime Commission (FMC), the bipartisan body tasked with regulating the U.S. international ocean transportation system for the benefit of U.S. exporters, importers and consumers. Although FMC Commissioners serve five-year staggered terms, the new Trump Administration is taking office with an open FMC seat recently vacated by former Commissioner Carl Bentzel. As a result of the FMC's current makeup – two Republicans and two Democrats – it is likely President Donald Trump will appoint a Republican to the role. Nevertheless, the impact of this presidential nomination will not be immediately apparent, as Commissioners must be confirmed by the advice and consent of the Senate. This process can be lengthy, taking on average 115 days in recent years. In the meantime, the FMC will continue to operate with four Commissioners, which has the potential to result in split decisions and stalled policy initiatives.
In addition to filling the current vacancy, the incoming administration has the prerogative to designate one of the Commissioners as the Chairman of the FMC. Whereas appointment of a new Commissioner can take months for confirmation, the selection of a new Chairman could happen on a president's first day in office. The FMC Chairman serves as the chief executive and administrative officer of the FMC and has significant policy and management responsibilities in addition to responsibilities as a Commissioner. In 2017, then-President Trump designated a Republican Chairman within three days of taking office, making it unlikely the current Chairman, Democrat Daniel Maffei, will remain in the role.
If the Trump Administration intends to appoint a current Commissioner as Chairman, it seems likely that Commissioner Rebecca Dye, the longest-serving FMC Commissioner with an extensive maritime background, would be designated as Chairman. Commissioner Dye has already received support from fellow Commissioner Louis Sola, who wrote a letter to President Trump recommending that he designate Commissioner Dye to serve as Chairman. Commissioner Dye was originally appointed to the FMC by President George W. Bush for two terms commencing in 2002 and subsequently appointed for two additional terms by President Barack Obama and by President Joe Biden for her current term. The career of Commissioner Dye, a graduate of the University of North Carolina School of Law, has included time in the U.S. Coast Guard, U.S. Maritime Administration and as counsel to two House Committees before her first term as an FMC Commissioner. She has been active in virtually all the FMC's major regulatory and policy development initiatives over the last two decades.
These foreseeable changes in the leadership and makeup of the FMC following President Trump's inauguration could have a dramatic impact on its regulatory and policy initiatives. As the international supply chain continues to face disruption after disruption, the FMC's role as the agency responsible for regulating U.S. international ocean transportation system for the benefit of, among others, the U.S. consumer, has continued to grow. As the new administration takes shape, the maritime industry will be closely watching these developments at the FMC and their implications for the future.
20 Posts in 20 Days Leading to Inauguration Day on Jan. 20
Holland & Knight's Transportation & Infrastructure Industry Sector Group is prepared to assist industry clients in adapting to the anticipated changes by the new administration. Our team is writing new blog posts each day leading up to President Donald J. Trump's inauguration, with insights regarding likely impacts on the various segments of the industry, including aviation, construction, maritime, freight rail, motor carriers, transit and autonomous transportation. Bookmark our Election Impacts on Transportation & Infrastructure resource page to follow along.