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Tariffs, politics drive uncertainty for shipping

SUMMARY:

  • Tariff hikes and retaliatory measures raise costs for shippers
  • and Gaza war continue to disrupt routes
  • Proposed U.S. for Chinese ships could reshape calls
  • East Coast longshoremen secure 62% wage hike through 2030

For the shipping industry, the theme of 2025 is uncertainty — whether it be in relation to , interest rates or the as a whole. Also, there are external pressures, such as the resumption of Israel’s attacks on Gaza in March following a short ceasefire, as well as continued strife in the Red Sea.

In short, it’s hard for shippers to plan ahead.

“The constantly changing environment around tariffs is making it pretty impossible for shippers — and therefore their supply chain partners — to really plan and prepare efficient supply chains,” says Rachel Shames, vice president of pricing and procurement at Norfolk-based freight-forwarding company CV International.

In terms of tariffs, shippers and other businesses are trying to keep track of President Donald Trump’s flurry of tariff announcements targeting all foreign imports, as well as higher levies on imported steel and aluminum, foreign-made vehicles and automobile parts. issued a 34% retaliatory tariff on U.S. goods, after being hit with a 34% U.S. levy in early April.

It’s unclear, though, how long all of these measures will remain in place and what their ultimate impact will be on the and the rest of the Virginia economy.

“The uncertainty regarding tariffs is just that: uncertainty,” says Joe Harris, a spokesperson for the Virginia Port Authority. “Given that, we are focusing on what we can control, which is the efficient movement of across our terminals.”

Shames notes that shipping companies typically absorb a lot of import costs when they go up, but right now, there are “a lot more tariffs,” and they’re much higher percentages, she adds.

“There’s not much room left in the supply chain or on the supplier side to absorb any costs now,” Shames says. “A lot of it comes down to what the U.S. consumer can bear, and companies trying to figure out how to make their business models work with product cost increases going up so much.” It’s also challenging for companies to plan volumes for the year and secure more space on vessels, trucks and warehouses, she adds.

Separately, shippers have for the past couple of years changed routes to avoid terrorist attacks in the Red Sea. The Houthis, a group backed by Iran that oppose Yemen’s government, launched attacks on dozens of merchant and naval vessels in the Red Sea beginning in October 2023, at the start of the war in Gaza.

While the conflict continues — and the United States carried out airstrikes on military targets in Yemen in March — some U.S. and U.K. ships returned to the Red Sea in late January after a partial end to attacks on commercial ships coinciding with a ceasefire in Gaza. However, The New York Times reported in March that other shippers are wary about returning to the Red Sea and the Suez Canal.

Despite the overall impact of political instability on the worldwide shipping industry, Jeremy Bridges, president and chief negotiator of the Hampton Roads Shipping Association, says the impact on the Port of Virginia has been “minimal throughout the crisis” in Gaza and the Red Sea.

What could be more disruptive to shipping companies and the Port of Virginia is a White House proposal to charge for every Chinese-built vessel that calls at a  U.S. port. This could cost up to $1.5 million per port call.

It’s expected that in order to avoid paying hefty port call fees, ocean carriers would reduce the number of calls and the number of they call on, says David White, executive director of the Virginia Association. That could lead to a consolidation of cargo at just the largest ports in the U.S., and some smaller ports may lose business, he says.

“Then you end up with the potential for the ports where the cargo is consolidated to have congestion issues and [issues] having sufficient equipment — things that are disruptive to supply chains,” White says.

In other words, Bridges adds, “it could be less attractive to call the Port of Virginia, and we could see reduced shipping activity as shipping lines decide to limit or reduce port calls and focus on larger ports.”

Meanwhile, a new master contract was finalized in March between the United States Maritime Alliance (USMX), which represents ship lines as well as port and terminal operators, and the International Longshoremen’s Association, which represents 45,000 port workers on the East and Gulf coasts. In a deal reached in October 2024 following a three-day strike that temporarily closed down cargo operations at every major port on the East and Gulf coasts, port employers will pay a 62% increase in wages over the next six years.

That will undoubtedly cause a financial impact at ports, including the Port of Virginia.

Bridges says there hasn’t been “any significant or noteworthy impact on Virginia” yet in terms of higher costs passed along to customers. But it could be too early to tell how costly this could become for the shipping industry.

“Those wage increases are going to be passed along, and so they will become part of the cost of doing business,” White says. “There’s always pressure to absorb those costs, but only so much can be absorbed — and the rest gets passed on to the ultimate consumers.”

The Port of Virginia at a glance

In fiscal 2024, the moved 3.5 million 20-foot equivalent units (or TEUs), its second highest number in history, just below 2022’s 3.7 million record. The six-terminal port hit a major milestone in March 2024, completing the widening of its channels up to 1,400 feet at the Norfolk International Terminals, and the deepening phase is expected to be complete late this year. However, the Port of Virginia and every other port on the East and Gulf coasts shut down handling for three days in October 2024 during a strike by the International Longshoremen’s Association over wages and automation conflicts during contract negotiations. In March, ILA members confirmed a new six-year master contract that includes 62% higher pay over that period, costs that could impact Virginia’s port and others in the future. At the , Dominion Energy has leased space to use as a staging area for its Coastal Virginia Offshore Wind farm, which is halfway complete 26 miles off the coast of Virginia Beach, and is expected to be finished in 2026.

 

 

Virginia inland ports expand to meet shipping demand

SUMMARY:

The Virginia Inland Port in and Richmond Marine Terminal are making investments to keep ahead of freight-shipping demand, while still determining whether there’s enough demand to justify a new inland port in Southwest Virginia.

The ‘s improvements to its two inland properties come at a time when it’s also finishing deepening the harbor at its Norfolk terminal to accommodate larger ships and bigger volumes. In 2024, the port completed widening the harbor, allowing ultra-large container ships to pass two at a time.

The recently completed $15 million capital improvements at the 161-acre Virginia Inland Port complement the project, expanding railroad track that can handle larger trains. Additionally, the inland port added container handling equipment repurposed from a Hampton Roads terminal. The port spent $6.1 million to make upgrades at RMT, improving gate passage times and providing more light to extend barge loading and unloading into the evening.

“The time was right to get the Virginia Inland Port ready for the future,” says Port of Virginia spokesman Joe Harris. “The terminal is growing, volumes are growing, and we wanted to be ready so we don’t want to have to play catch up.”

The improvements have boosted efficiency at the port so trucks can move in and out more quickly, says Dale Bennett, president and CEO of the Virginia Trucking Association. “The biggest complaint you get about any port is drivers facing delays in delivering and picking up ,” Bennett says. The port’s capital improvements directly address that concern.

As for replacing older equipment with carbon-free, electric alternatives at the port’s facilities, that’s still rolling along, even with President Donald Trump’s rollback of former President Joe Biden’s legislation, including federal funding to cut 3 million metric tons of carbon emissions through electrification and other methods.

“Right now as we speak, all of our terminals — Richmond, Virginia International Gateway, Norfolk, VIP, Newport News — are all powered by clean energy,” Harris says. “We are getting electricity off the grid for our terminals to use, and then backfilling exactly what we use with clean power taken from solar or wind or nuclear. We understand the administration has a different look at sustainability, but we’re going forward with our 2040 net-zero goal — not under a mandate, but our own goal.”

As for a Southwest Virginia inland port — much desired by politicians in that corner of the state, as well as economic development officials — there wasn’t much movement in 2025.

The Virginia Port Authority is currently conducting a study to determine the viability of adding an inland port at an industrial park in Washington County, and county officials are improving nearby industrial sites that may see more interest if the state’s second inland port is built nearby.
According to the port’s latest update to the General Assembly, filed on March 1, “The business case for the facility is complex.” Part of the complexity is lining up an inland port with local rail lines and other infrastructure, as well as the persistent question of whether there’s enough cargo volume to justify an inland port.

“It’s not one of those things we should venture out and build without substantial commitments from users,” says Devon Anders, president of Rockingham County-based third-party company InterChange, situated near the Virginia Inland Port.

If it’s successful, the port could attract business from in Charleston, South Carolina, and Savannah, Georgia, and beyond. But the port authority should get commitments from shippers before it moves forward with construction, Anders advises.

Out and About Best Places To Work 2025

For the 15th year, and presented the in Virginia . On March 31, the winners celebrated at a disco-themed awards banquet held at the Hilton Richmond Hotel & Spa in Short Pump. Photos by Matthew R.O. Brown for Virginia Business.


1. Employees from Richmond commercial real estate firm Cushman & Wakefield | Thalhimer celebrate their win as one of Virginia’s best workplaces.

2. The 2025 awards were co-hosted by Best Companies Group Executive Vice President Jaime Raul Zepeda and
Virginia Business Associate Publisher Richard Foster, who set the tone for the evening’s lively festivities.

3. L to R: Virginia Business Sales Manager Toni McCracken presents Spurrier Group CEO Donna Spurrier with an award recognizing the Richmond-based performance media marketing company as the No.1-ranked Virginia workplace among small companies.

4. Decked out in groovy 1970s-inspired finery, employees of Ashland’s Creative won the special Spirit Award for being the most spirited and fun workplace in attendance.

5. Patriot Group International President Al Buford (center) joins co-workers for a celebratory group photo. The Warrenton-based federal contractor was ranked the No. 1 best workplace in Virginia among large companies with 250 or more employees.

KPMG enters U.S. legal market with Arizona launch

 

Summary

  • receives license to offer
  • Move challenges traditional firm ownership rules
  • Expansion raises potential for more Big Four firms to follow
  • Virginia unlikely to allow similar ownership changes soon

One of the is expanding into the U.S. legal industry. In February, KPMG received a special license from the Arizona Supreme Court to practice law under the subsidiary KPMG Law US.

KPMG’s move into legal services is more of a milestone than it may seem: It potentially opens the door for other accounting firms to follow suit, which would usher in a new era for the legal services industry in this country.

The professional services firm, whose U.S. limited liability partnership KPMG US is headquartered in New York City, already has a global network of operating in 80-plus jurisdictions, and its U.S. audit, tax, and advisory firm predates the law firm.

KPMG Law US will offer a broad range of legal services that addresses the evolving needs of legal departments and helps clients gain efficiencies, according to a February statement from the firm.

“By combining cutting-edge artificial intelligence and advanced technology solutions with legal services, we are proud to be a first mover with this capability and to offer the most holistic range of tech-enabled services in the marketplace for our clients’ evolving needs,” Rema Serafi, vice chair for tax in KPMG’s U.S. firm, said in the statement.

Implications for Virginia

What does this mean for ? For now, the broader implications are limited, according to A. Benjamin Spencer, dean of the Law School.

That’s because Virginia doesn’t permit of firms practicing law, and KPMG can  provide legal services outside of Arizona only if those services comply with another jurisdiction’s requirements, although KPMG notes that it is partnering with law firms in other states so it can serve clients nationally. Co-counseling and referrals are also allowed, KPMG says, and this model has been common among U.S. law firms and staffing companies across different jurisdictions.

In 2020, Arizona became the first state to lift the American Bar Association’s rule that prohibits nonlawyers from owning a law firm and the following year, the state established a program to widen the public’s access to legal services. In 2020, Utah’s Supreme Court likewise relaxed that same restriction on law firm ownership, and Washington’s Supreme Court announced in 2024 a pilot program to similarly expand legal access.

What will be interesting to watch is whether other jurisdictions will loosen those same restrictions, though Spencer says he doesn’t expect Virginia to lead the way.

While some critics of KPMG’s expansion into legal services have expressed concerns over potential conflicts of interest, the court order approving KPMG Law U.S. stipulated that the firm can’t provide legal services to clients for which it also performs financial audits.

Even with safeguards in place, some lawyers are reluctant to embrace KPMG’s move into law.

But KPMG’s entry into the legal marketplace, along with the potential of the other Big Four firms, will bring “much-needed” competition, Spencer says. What’s more, these new entrants could bring about innovations in client services that law firms have thus far been unable to achieve, he adds.

“This is a net positive development for the industry as a whole because the competition will spur improved services for clients, potentially at better cost levels,” Spencer says.

What’s more, graduates of Virginia’s law schools could potentially benefit, he adds, with an additional avenue for employment in addition to traditional law firms.

But while a one-stop shop model for accounting, tax, and legal services could provide efficiencies that would benefit business clients for most routine matters, there’s still a place for traditional law firms in the market, Spencer notes.

“Traditional law firms — for now — retain a significant advantage in the level of expertise and experience that they can bring to bear on the most complex legal challenges that businesses face.”

This story has been corrected since publication.

Virginia universities provide expansive maritime education

SUMMARY:

  • debuts coastal science bachelor’s at VIMS this fall
  • $150M in gifts fund , research, and faculty hires
  • Program offers hands-on research and marine immersion semester
  • Other Virginia schools expand maritime and programs

Virginia’s first bachelor’s degree program in coastal and marine sciences at a public university gets underway this fall at William & Mary’s Batten School of Coastal & Marine Sciences and the Virginia Institute of , adding to a plethora of maritime education offerings across the state.

The State Council of Higher Education for Virginia formally approved the new bachelor’s degree program earlier this year. Applications for the first class were set to be accepted beginning in April.

The William & Mary program brings an undergraduate natural sciences option to Virginia’s existing maritime programs, while other universities focus more on logistics and supply chain management.

Entering the Batten program their junior year, students will receive an educational foundation in coastal and marine sciences along with an emphasis on hands-on learning and research. The new bachelor’s degree marks the first time undergraduate courses will be taught at VIMS’ Gloucester Point campus.

Currently, the Batten School offers master’s and doctoral degrees, a professional master’s degree and an undergraduate minor in marine science that prepare students to tackle challenges in estuarine, coastal and marine systems. Nevertheless, William & Mary’s undergraduate courses in coastal and marine sciences have tripled in popularity since 2019.

“We didn’t want to create an undergraduate degree that would only result in students going on to grad school,” explains Siddhartha Mitra, associate dean for academic affairs at the Batten School and VIMS. “With this degree, they will have a variety of career options in coastal and maritime fields available to them, such as coastal resilience or policy.”

Students will spend a marine science immersion semester at VIMS, be transported between Williamsburg and Gloucester Point for classes and conduct research alongside the school’s faculty and staff.

The first cohort is projected to have about 10 students. Over the next five years, the program will grow to approximately 50 students in the major.

“We really want to do this carefully to make sure that every student that goes through this program gets a really good education with opportunities for internships and research,” Mitra says.

Record-setting gifts are providing major funding for the Batten School and the new degree program. Last summer, Hampton Roads philanthropist donated $100 million to William & Mary, naming the school and establishing an endowment for its academic and research work in coastal and marine sciences.

Batten’s is the largest in the university’s history, as well as the most ever given to a research institution studying coastal and marine sciences. Through Batten’s support, William & Mary will hire new faculty members, and each coastal and marine sciences major will receive $5,000 for independent research or an internship.

In addition, William & Mary alumnus and former liver surgeon Dr. R. Todd Stravitz donated $50 million to create a full-tuition scholarship fund for each student in the undergraduate program. The endowment is the largest gift ever made to the university’s scholarship fund and the most for a school of coastal and marine sciences.

Other Virginia universities also offer maritime-related programs. Last fall, Old Dominion University launched its School of Supply Chain, Logistics and Maritime Operations, with about 60 students in undergraduate and graduate courses.

Undergraduate majors include a bachelor’s degree in supply chain and maritime logistics and a minor in supply chain management. Graduate programs cover maritime and supply chain management, with graduate certificate programs in ports, logistics and supply chain management.

The school is one of only a few maritime-based supply chain programs in the country, says its director, Kuntal Bhattacharyya, and its curriculum was designed to align with industry needs.

“Our uniqueness is the maritime focus with the port, shipbuilding and that are not taught in most supply chain programs,” he says. “The maritime industry is extremely supportive of our curriculum, and many industry partners teach in our program.”

He adds that students are encouraged to obtain multiple internships: “Employers are looking for problem solvers. Problem solving doesn’t happen when you learn from textbooks.”

plans to enroll up to 30 students annually in the bachelor’s degree program and 40 to 60 students in online certificate courses this fall. Graduate certificate courses will be taught as eight-week asynchronous classes, which offers flexibility to working professionals, Bhattacharyya says.

Similarly, Virginia Wesleyan University in Virginia Beach offers a supply chain management and logistics certificate available to current students as well as nondegree-seeking students. The program requires students to obtain an internship to supplement their classroom work.

In Central Virginia, Virginia Commonwealth University’s Department of Supply Chain Management and offers bachelor’s and master’s degrees in supply chain management, as well as master’s programs in decision analytics and certificates in supply chain management and decision analytics. The 30-credit master’s degree program is targeted to professionals in the corporate and military sectors seeking to advance in the global logistics management field.

Trump’s tariffs echo Hoover-era economic missteps

SUMMARY:

  • Trump’s 2025 caused $11.1 trillion in market losses as of early April.
  • Economists warn war could trigger a recession.
  • Powell and Dimon express serious concerns over and growth.
  • Trump’s approach mirrors Hoover-era Smoot-Hawley policies.

In a January 2024 interview on a MAGA-friendly online platform run by MyPillow CEO Mike Lindell, said he thought the U.S. was headed for a crash, adding that he hoped it wouldn’t happen during his then-hypothetical second term.

“When there’s a crash, I hope it’s going to be during this next 12 months because I don’t want to be Herbert Hoover,” Trump said. “The one president I just don’t want to be [is] Herbert Hoover.”

It’s ironic then that Trump’s first 100 days in office could be confused with an historical reenactment of the Hoover administration. In fact, the president seems to be doing everything short of selling T-shirts and posters of himself decked out in Hoover cosplay.

First, a brief history lesson: Following the 1929 and with the world entering the Great Depression, Republican Hoover signed the Smoot-Hawley Tariff Act into law in 1930. The GOP legislators who brought forward the protectionist trade law hoped it would boost U.S. manufacturing, but economists and the nation’s business leaders vehemently protested, saying it would bring disaster.

While the trade war initially sparked boosts in domestic production and employment, it ultimately resulted in plummeting exports and employment levels. Other nations either responded with retaliatory tariffs or found alternatives to American goods. The world economy worsened, and Smoot-Hawley has generally been cited as a contributing factor to what made the Great Depression so great.

Now, fast-forward to today: As of early April, Trump’s brief , with its whipsawing, on-again, off-again tariffs, resulted in the stock market losing about $11.1 trillion in value in just under three months.

Trump has cited various reasons for his trade war, including wanting to bring manufacturing back to America, fixing trade imbalances and responding to other nations’ tariffs on U.S. exports. (He’s also contradicted himself about whether the tariffs are meant to be a negotiating tactic.) None of these are bad goals on their face, but none can also be solved overnight without causing economic chaos.

Richard Foster. Photo by James Lee

On April 2, which he dubbed Liberation Day, Trump unveiled a fierce slate of virtually worldwide tariff hikes, sending the market into a spiral that marked the worst day in trading since 2020. A week later, acknowledging that Americans were getting “a little bit yippy, a little bit afraid” over the trade war’s economic impact, Trump paused most of his reciprocal tariffs for 90 days. But he left in place and ratcheted up tariffs on Chinese goods, some of which now may be as high as 145% to 245%.

During an April 9 Fox Business interview, JPMorgan Chase CEO said that the “likely outcome” of Trump’s aggressive tariffs would be an economic recession. And on April 16, Federal Reserve Chair remarked that Trump’s tariffs exceeded the Fed’s worst-case assumptions, saying the trade war could lead to higher, prolonged inflation and slower economic growth. Powell also signaled that the situation would prevent the Fed from lowering interest rates.

Trump’s response? He complained about interest rates and threatened to fire Powell before the chairman’s term ends.

If only there was some way we could have been warned this might happen. Oh, wait — we were.

The Hill ran a July 16, 2024, editorial titled, “Trump’s tariffs could mirror Hoover’s Depression-era results.” And in October 2024, just ahead of the presidential election, the nonpartisan Tax Foundation think tank published a cautionary essay, “Trump’s Tariff Proposals Would Raise Tariff Rates to Great Depression-Era Levels.” And these were hardly the only voices raising the alarm.

But everyday voters in the 2024 presidential election were largely ignorant about the potential threat and impacts of a trade war, and the business community chose to ignore the issue, preferring to believe that Trump would be more focused in his second term on economic growth and eliminating regulatory hurdles than on waging trade wars and political revenge.

Regardless of your , it’s a fact that Trump isn’t interested in preserving the status quo — and that’s a trait for which he’s beloved by his tens of millions of loyal followers.

But he’s also not invested in preserving economic stability, and that’s a problem for business and finance.

Northern Virginia business leaders’ confidence drops in Q2

SUMMARY:

  • business leaders report declining confidence in Q2 2025
  • Only 12% expect to increase hiring, down from 49% in Q1
  • Top concerns include , and
  • Chamber developing NOVA Roadmap strategy for economic stability

The confidence of business leaders with operations in Northern Virginia declined in the second quarter of 2025, according to a survey released today.

From April 21-25, 298 executives and company owners completed the survey, the second such study conducted by the (NVC) and Pinkston, a Falls Church-based communications firm.

Northern Virginia as a whole is bracing for an economic hit due to ‘s efforts to cut government spending. Since Trump returned to office in January, thousands of federal employees have been fired or put on leave. While continues to trickle in about the regional impact of cuts, we know that in 2023 about 175,000 federal jobs were held by residents of Northern Virginia, according to the Northern Virginia Regional Commission. The unemployment rate for Northern Virginia in March was 3.2%, up from 2.8% in January.A hub for federal contractors, Northern Virginia will also likely take a hit from Trump’s cuts to federal contracts.

“The findings of this pulse survey reinforce what we’ve been hearing from our membership over the past few months: a significant and growing concern among business leaders regarding the trajectory of our regional , largely driven by the impact of federal actions,” Julie Coons, president and CEO of NVC, said in a statement.

“DOGE is shaking up the Northern Virginia economy more than business leaders originally expected,” D.J. Jordan, senior vice president at Pinkston, stated in a news release. “It’s no surprise that business leaders are pessimistic, considering our region’s reliance on the federal government, however, there are signs within this survey that demonstrate Northern Virginia’s growth in other industries, such as technology and finance. While business leaders are pessimistic about the Northern Virginia outlook overall, there is a silver lining in that they are more optimistic about their own companies.”

The first survey by NVC and Pinkston, conducted in January, reported 60% of leaders queried believed Northern Virginia’s economy would grow over the next six months. This time around, 59% of those surveyed said they believe the region’s economy will decline over the next six months.

That said, more than half of the business leaders surveyed reported being very or somewhat optimistic about their companies’ performance over the next six months. That was a drop, however, from the 81% who expressed optimism in their own operations the first time around.

In the second quarter survey, only about 12% of business leaders expected to increase hiring, while 49% surveyed in the first quarter anticipated needing to grow worker head count. Less than 20% anticipated needing to cut employees in the second quarter, an increase over 6% who anticipated making cuts in the first quarter survey.

A healthy chunk, 43%, of business leaders with Northern Virginia operations expect their company’s capital spending to decrease in the next six months, while 21% of business leaders anticipate increasing capital spending. In the first quarter survey, 54% of leaders planned to increase capital spending.

Issues most impacting business growth, according to the leaders surveyed, are: federal layoffs (63%), inflation (62%) tariff policies (53%) (30%) supply chain issues (29%) and federal procurement (27%).

NVC, according to Coons, is developing a report and policy strategy, called the NOVA Roadmap, to address challenges and ensure Northern Virginia’s economic future.

Northern Virginia’s $302 billion gross domestic product represents nearly 42% of Virginia’s gross domestic product and is larger than 24 other states, according to NVC.

Virginia junk fee ban awaits action from governor

SUMMARY:

  • Virginia lawmakers passed a bill requiring junk
  • Gov. Youngkin seeks a 2026 reenactment and exemptions for health clubs
  • Advocates say cost households hundreds annually
  • Governor must act by May 2

Virginia consumers could be free of costly junk fees if the governor signs off on a piece of legislation passed earlier this year. 

Twin bills in the Virginia House and Senate update the Virginia Act and force certain businesses to disclose the total price of services and products before a purchase. All and surcharges tacked on near the end of a purchase would become a transparent part of the advertised price, according to the legislation.

The bills cleared the General Assembly but are stalled at the governor’s office.

sent the bills back with the request to have a 2026 reenactment clause, which means it would go through the same legislative process next year. All 100 seats in the House of Delegates face an upcoming election, which could change the current Democratic majority and possibly sway the bill’s outcome next year.

Youngkin also asked for health clubs to be included in the list of businesses exempt from mandatory fee disclosure.

There was some bipartisan support among lawmakers, who rejected his changes. Now he has until May 2 to take any counter action, such as a veto.

Sen. Stella Pekarsky, D-Fairfax County, introduced Senate Bill 1212 and Del. Adele McClure, D-Arlington, sponsored House Bill 2515. Pekarsky first introduced the mandatory fee disclosure bill during the 2024 session, but it was shot down in the House after passing the Senate.

Pekarsky told the Senate General Laws and Technology Committee they worked on the legislation in the past year to ensure it was clear and understandable.

“This new version of the bill is modeled after legislation that was successfully passed in other states,” Pekarsky said.

 An average U.S. household spends around $650 in junk fees a year on the 10 most dominant industries that use junk fees. In addition to credit card and banking fees, some of the fees are from industries that include airlines, hotels and food delivery, according to a 2024 White House  report.

The amount paid in hidden or “junk” fees could be in the thousands of dollars for a household, according to Ryan O’Toole, the co-executive director of Freedom Virginia, a nonpartisan organization focused on economic security and affordability. These fees only help the industries make extra profit; customers don’t receive any additional benefits for paying these mandatory add-ons, he said.

“Especially in today’s , we feel like the General Assembly, state government, should be doing anything it possibly can to lower the cost of living for the working people,” O’Toole said.

Rhena Hicks, the other executive director, told the Senate panel that transparency is important for consumers making online purchases.

“Virginians deserve honesty and truth in pricing,” Hicks said. “We deserve to know the full cost upfront. Hidden fees undermine trust.”

Youngkin’s substitutes will delay Virginia consumers from making informed financial decisions, according to Jay Speer. He is executive director of the nonprofit Virginia Poverty Center, which advocates for low-income residents.

“It just basically says you have to pass the same bill again next year to make it go into law,” Speer said about the reenactment clause. “So it’s just to me another way of vetoing it.”

The governor’s action deadline is 11:59 p.m. on Friday, May 2.

Capital News Service is a program of Virginia Commonwealth University’s Robertson School of Media and Culture. Students in the program provide state government coverage for a variety of media outlets in Virginia.

 

Spire sells maritime business for $241M to Kpler

SUMMARY:

  • completes $241 million sale of its business to Belgian and company .
  • Spire says it used proceeds to retire outstanding debt.
  • The sale resolved a Spire filed against Kpler in February, after Kpler failed to close the sale on Jan. 24.
  • Kpler says the will bolster its capabilities in maritime data and analytics.

-based Spire Global announced last week that it completed its roughly $241 million sale of its maritime business, Spire Maritime, to Belgian data and analytics company Kpler — bringing an end to a spat that arose when Kpler initially didn’t go through with the previously announced purchase.

Spire, a space-focused data and analytics company, said the sale was approximately $233.5 million before adjustments, plus a post-close $7.5 million agreement for services over a 12-month period. The company says it used the proceeds of the sale to pay off all outstanding debt and that the remaining proceeds will be used to invest in near-term growth opportunities.

The sale was initially announced in November 2024, with the companies anticipating the sale’s completion during the first quarter of 2025. However, Spire in February filed a complaint with the Delaware Court of Chancery seeking to compel Kpler to complete the sale. In a letter, Spire said that Kpler declined to consummate closing on Jan. 24, the designated closing date under the share purchase agreement.

“Kpler has offered no justification for its failure to close nor identified any unmet conditions to closing, all of which were met or could have been met as of the designated closing date absent Kpler’s breach,” a legal representative of Spire wrote in a Feb. 14 letter to Judge Colm F. Connolly. “Kpler’s ongoing failure to consummate the transaction for over three weeks has already caused significant harm to Spire, and such harm will continue to impact Spire’s business operations for as long as Kpler is allowed to avoid its obligations under the SPA.”

Other court documents redact the reasoning for Kpler’s initial reason for not completing the sale in January. Spire said earlier this month that it reached an agreement with Kpler on April 6 to resolve the and mutually release claims if the closing occurred by April 25.

Neither company immediately returned requests for comment. The case was dismissed with prejudice on April 25, with both companies bearing their own associated costs and attorney fees.

“This milestone marks a significant step forward in Kpler’s mission to deliver decision defining insights across the global trade sector,” said Kpler CEO Mark Cunningham in a statement after the sale was completed. “The addition of this high quality data will unlock greater value for our customers and partners by providing increasingly comprehensive and timely insights into global trade flows. It’s about helping them navigate complexity, uncover opportunities, and make better decisions every day.”

Kpler said the acquisition will bolster its capabilities in maritime data and analytics. The company says it’s working closely with the relevant regulatory authorities and the UK Competition and Markets Authority in light of their review of the transaction.

In the meantime, Kpler said both businesses will continue to operate independently until the review is complete.

Founded in 2014, Kpler is a global company with more than 600 employees in over 35 countries, focusing on providing data and analytic services for global trade. It tracks more than 400,000 ships daily, according to its website.

Spire is a global provider of space-based data, analytics and space services that builds, owns and operates a fully deployed satellite constellation that observes the Earth in real time using radio frequency technology. Data from Spire’s satellites provides global weather intelligence, ship and plane movements and spoofing and jamming detection. Spire has more than 430 employees, with nine offices around the globe.