October 3, 2025
Pictured: a symbolic representation of the shutdown of the US Federal Government. The building is the US Capitol building, which is the symbol of US Federal Government. Photo credit: Louis Velazquez via Unsplash.

US Federal Government shutdown could cause trade delays

Federal Government in the United States has entered shut-down after a Senate vote failed to secure funding for administrative funding across the country.

A standoff over spending between the two major political blocs in the United States, the Democrats and the Republicans, did not reach agreement in a 55-45 vote that required 60 votes for approval.

At the time of writing, many elements of the U.S. administrative government are temporarily suspended as it is unlawful for many (but not all) U.S. federal employees to work during a shut-down.

However, key workers that are responsible for life and safety of property continue to work.

Border agency staff, for example, continue to work and that agency is reported to be “largely operational” at ports of entry and cargo processing is said to be continuing.

That is not the case at other agencies. For example, staff at the U.S. Federal Maritime Commission have been furloughed (i.e. prevented from working and are not paid).

During the shutdown, the US FMC will not respond to email or phone, or update its website. It it will not process submissions, accept filings or applications for licences, or forms, and it will not accept filings from ocean carriers, or marine terminal operators (i.e. container stevedores). The Commission will not accept or act upon complaints, requests, and all filing deadlines in adjudicatory and investigatory proceedings are temporarily suspended.

Shipping Australia has been advised by trade experts that, owing to furloughs and reduced services, import / export processing, and shipments that require interaction with government agencies could face delays.

Roughly about 6.2% of all of Australia’s containerised exports go to North America (which includes both Canada and the US) and 6.7% of our containerised imports come from North America. North American containerised trade (i.e. imports and exports together) amount to about 6.5% of Australia’s total containerised trade (by numbers of TEU).

U.S. Federal Senators are due to vote again on Friday afternoon (03 October 2025).

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