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Sailor Shortage Thwarts U.S. Maritime Relaunch; Tariff Fallout Spreads; A Talk With Costco's CEO By Mark R. Long

President Trump's push to reclaim U.S. commercial sea power and counter China's shipping dominance faces a daunting obstacle: America doesn't have nearly enough merchant mariners .

The WSJ's Paul Berger and Daniel Michaels write that lawmakers from both sides of the aisle identified a shortage of containerships, tankers and shipbuilding capacity as a key weakness in U.S. economic and defense policy. Democratic and Republican legislators have been working on a bill to strengthen the U.S. maritime industry. Many of their aims were included in an executive order Trump signed this week to resurrect domestic shipyards and stimulate demand for U.S.-flagged commercial ships.

But to fly American flags, those ships must be crewed by U.S. mariners. U.S.-flag operators already are struggling to find American crews. The U.S. is estimated to have fewer than 10,000 merchant mariners, about a fifth of the available sailors in 1960. One inducement: Merchant-marine jobs pay well. Maritime academy graduates can expect starting salaries of $90,000 to $120,000. This also explains why global carriers employ so few American sailors, in favor of less costly crews from the Philippines, Indonesia and China.

A prominent Chinese economist called on Beijing to strengthen relations in Central and South America to sustain commodities imports and Panama Canal access. (WSJ) The pause in tariffs is spurring another wave of cargo frontloading on ships from Southeast Asia and South America, but vessel loadings from China have plunged. (WSJ) CONTENT FROM: PENSKE Gain a Leg Up. Gain Ground with Penske.

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Decoupling

Some of the $582 billion in goods trading between the U.S. and China is grinding to a halt.

The Journal's Jason Douglas, Konrad Putzier, Ruth Simon and Raffaele Huang report that U.S. factories are canceling orders, Chinese manufacturers are furloughing workers and trans-Pacific ship bookings have declined as tariffs in Trump's second term have ratcheted up to 145%. These could eventually be walked back, but if the new duties stay in place, U.S. businesses face a loss of access to Chinese production altogether. Americans, stressed by a 24% rise in prices over the past five years, could be left paying even more for a shrinking selection of everyday goods.

For China, finding new buyers will be difficult as other countries already are inundated with Chinese imports and will be reluctant to take more. Economists say the country must pivot to boosting consumption or watch growth stagnate.

Where tariffs stand after Trump's 90-day pause. (WSJ) The European Union will suspend its first wave of retaliatory duties against the U.S. for 90 days. (WSJ) China's consumer prices continued to fall in March , adding urgency to efforts to stimulate consumption. (WSJ) The U.S. collected $1.1 billion more in customs duties in March than it did in February. (WSJ) Chinese regulators are probing DuPont, alleging unspecified monopolistic behavior. (WSJ) Amazon's CEO said the company bought some inventory in advance of tariffs to keep prices low and renegotiated some deals with suppliers. (WSJ) Novartis said it plans to invest $23 billion to expand U.S.-based manufacturing and research and development. (WSJ) North American manufacturers reported a sharp pullback in activity last month because of tariffs, according to supply chain software company GEP. (DC Velocity) Quotable From Forklift to C-Suite

WSJ VIDEO: Costco's CEO Ron Vachris sat down with The Wall Street Journal to discuss how its $86 billion Kirkland Signature brand runs and why it allows Costco leverage over many big brands

Number of the Day Executive Insights

Here is our weekly roundup of stories from across WSJ Pro that we think you'll find useful.

Just how much of that car was made in America? Advertisers making "Made in the USA" claims face greater risks -and opportunities-as Trump tariffs rock the global economy.

Public officials may separate their workplace and personal online lives, but hackers don't care .

WeightWatchers is preparing to file for bankruptcy as part of a plan to hand control of the business to its creditors.

Nestlé-owned Coffee Mate had one response to "The White Lotus" season finale : "Well this is awkward."

In Other News

U.S. consumer prices declined month-over-month in March for the first time in nearly five years. (WSJ)

The average price of a dozen eggs more than doubled in March from a year earlier, climbing above $6 for the first time. (WSJ)

Trump signaled openness to Japan's Nippon Steel investing in U.S. Steel, but not owning it. (WSJ)

Amazon's CEO said generative artificial intelligence will reinvent virtually every customer experience and was critical for the company's growth. (WSJ)

Volkswagen said it would report its lowest quarterly profit since 2021 on writedowns on the value of vehicles in transit resulting from new auto tariffs. (WSJ)

Porsche rushed cars to the U.S . to beat the deadline for a 25% tariff on all imported autos. (WSJ)

BMW delivered slightly fewer cars in the first quarter as strong growth in Europe and the U.S. failed to offset a demand slump in China. (WSJ)

Mazda told U.S. dealers that for now it will absorb about $100 million in tariff-related costs without resorting to price increases. (WSJ)

Givaudan's first-quarter sales grew but the Swiss flavor-and-fragrance company warned of higher prices . (WSJ)

Prada said it would acquire Versace from Capri Holdings for $1.38 billion, salvaging a deal at risk from market upheaval. (WSJ)

Uniqlo owner Fast Retailing raised its annual earnings forecast despite tariff uncertainties. (WSJ)

Grimaldi Group ordered nine newbuild , methanol-ready roll-on-roll-off passenger carriers from China Merchants Jinling Shipyard for $1.3 billion. (The Maritime Executive)

Volvo Trucks North America will integrate Greenlane's charging services in North America. (Trucking Dive)

The U.S. imposed sanctions on a Dubai-based shipowner and his 28 vessels for helping smuggle Iranian oil. (TradeWinds)

The U.S. Department of Defense awarded Johns Hopkins University a $1.5 million grant to research ways to bolster pharmaceutical supply chains . (Supply Chain Brain)

About Us

Mark R. Long is editor of WSJ Logistics Report. Reach him at [mark.long@wsj.com]. Follow the WSJ Logistics Report team on LinkedIn: Mark R. Long , Liz Young and Paul Berger .

This article is a text version of a Wall Street Journal newsletter published earlier today.

(END) Dow Jones Newswires

April 11, 2025 07:03 ET (11:03 GMT)

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