USA Trends and Developments Contributed by: Seward & Kissel LLP, Seward & Kissel LLP
Decarbonisation Decarbonisation in the maritime industry, wheth - er driven by new regulations, financing terms, business or social reasons, continues to be a major catalyst for change. While the IMO target of net zero carbon emissions by 2050 remains (with a 20% emissions reduction requirement by 2030 and a 70% emissions reduction by 2040), how the industry adapts and implements the required changes to meet those targets is still developing. For example, the technology needed to develop viable low- or no-carbon fuel sources for use on larger vessels – such as ammonia or methanol, which have lower energy content – is still in its early stages. Early adopters likely need larger vessels with larger fuel tanks to ensure adequate fuel capacity for longer voyages. Those early adopters also require stakeholders at each port to be committed to developing the necessary infrastructure to allow refuelling. As the tech - nology for alternative fuel sources develops, newer ships and propulsion plants will likely be designed, making it harder for many ship-own - ers to rationalise incurring huge capital costs at early stages on technology that has a long com - mercial life but may quickly become outdated and less economically efficient. Liquefied natural gas (LNG) and liquified petro - leum gas (LPG), which are considered alterna - tive fuels, have seen a lot of growth – though these are seen as transition fuel types given the comparatively high level of carbon content. In addition, most early adopters have been LNG and LPG carriers, and have installed dual-fuel engines as they carry those fuels as cargo. Besides technological changes due to decar - bonisation, there have also been changes in how parties contract. Ship-owners and charterers
“covered foreign person” in a “country of con - cern”, currently defined as China, including Hong Kong and Macau. This programme prohibits or requires notification of certain kinds of invest - ments in semiconductors and microelectron - ics, quantum information technologies or artifi - cial intelligence sectors, subject to exceptions. These new requirements, which could change or expand over time, could result in serious regulatory exposures if not well understood or navigated. Parties should pay particular atten - tion to – and update as necessary – their poli - cies and procedures to ensure their corporate compliance programmes adequately address the final rule. 2025 China outlook The USA-China relationship is presently com - plex, with a number of competing policy direc - tions. In respect of sanctions policy, Russia has begun to ramp up efforts to boost its digital assets in order to evade US sanctions on much of its financial services sector. China could accordingly be an indirect target of future Rus - sian sanctions in so far as providing material or financial support or services to Russian compa - nies that are determined to support the Russian war effort in Ukraine. Tariff policy is likely to be even more aggressive, based on statements by the incoming administration. Additionally, the US government has broad authority in certain are - nas to impose tariffs, including under Section 232 of the Trade Expansion Act of 1962, which allows the President to impose import restric - tions based on an investigation and affirma - tive determination by the Department of Com - merce that certain imports threaten to impair US national security, or, more controversially, under provisions of the International Emergency Eco - nomic Powers Act of 1977 (IEEPA).
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