Update: 02.10.2023
On Saturday, 30 September, US President Joe Biden signed a 45-day funding bill in order to avoid the shutdown of governmental institutions in the United States.
According to a report by CNBC, the Senate voted to pass the bill " 3 hours before 12:01 a.m." The signing of the bill gives the government time to finish the funding laws and allows state agencies to remain open for 45 days.
Update: 29.09.2023
With one day left until a potential government shutdown takes effect in the US, the Department of Homeland Security issued an update to inform the public about its contingency plan during that period.
Similarly, a joint statement was issued by a number of trade groups "to advocate for all avenues of international trade to remain open" during the shutdown.
If the US Congress misses the 30 September deadline to approve spending bills, multiple agencies of the US government could temporarily close.
Kuehne+Nagel advises that a potential government shutdown could pose substantial challenges to trade activities. Nevertheless, we remain committed to managing and mitigating any prospective delays or disruptions to the extent possible.
The Kuehne+Nagel advisory, in this regard, outlines the company's strategy in case of a shutdown. In addition, if you have questions, please reach out to your Kuehne+Nagel Customs Specialist.
Original article: 26.09.2023
The risk of a government shutdown looms as the deadline approaches for the US Congress to pass appropriations bills – also known as spending bills which authorise the expenditure of government funds. Such a shutdown could disrupt many public services in the country, including ports.
The American Association of Port Authorities (AAPA) has recently raised concerns about the potential impacts of a government shutdown on port operations. With Congress facing the 30 September deadline, the AAPA states it is important to be prepared for any disruptions that may arise from a lack of funding.
While essential services, such as the US Coast Guards, Customs Border and Protection and the Army Corps of Engineers, would continue to work without pay, they would not have the capacity to conclude new contracts.
US Department of Transportation (DOT) contingency plan specifies that staff overseeing critical programmes, such as the Port Infrastructure Development Program and America's Marine Highways Program, will remain operational during a shutdown. In case of a shutdown, these programmes would be funded using resources from the Infrastructure Investment and Jobs Act (IIJA).
However, if the government shuts down, millions of federal employees, including many of the approximately 2 million military troops and more than 2 million civilian employees around the country, would suffer missed payments. Examples include Transportation Security Administration agents who manage airport security and Postal Service employees who carry mail.
