According to Jose Gonzalez, President of the National Customs Brokers and Forwarders Association of America (NCBFAA), “[a] shutdown of the US government could cost American shippers millions of dollars in sudden supply chain delays at the nation’s ports of entry.” Customs and Border Protection (CBP) employees would be required to continue working without pay. This applies to agents and officers at over 300 ports of entry. 

While ports of entry would remain open, the process of importing goods will become significantly slower as workers feel the strain of the shutdown. Apart from a lack of pay, CBP would not be able to onboard new agents and fill vital roles. Not only does this impact operations in the short-term, it becomes an obstacle for hiring and support in the long-term. 

Although ports are technically operational, a government shutdown would make it imperative for freight forwarders to plan ahead. Importers shipping hazardous materials or seeking tariff-exclusions should be prepared for increased wait times due to operations of the Environmental Protection Agency (EPA) and the Office of Tariff Affairs and Trade Agreements (TATA) being affected by the government shutdown.

We are in the peak of the holiday shopping season. Fortunately, most goods and products have already arrived in warehouses and stores, but those last minute items and restocks could be affected by a government shutdown.

Representative Mike Johnson (R-LA) emerged out of the woodwork to become the new Speaker of the House in October. The four-term representative is still relatively unknown in Washington circles, and has aligned himself with a number of Christian groups and was part of the bloc of Republicans who voted to overturn the 2020 presidential election results, providing him with support from the extreme right-wing representatives that removed former speaker Kevin McCarthy.

Regarding government funding, Johnson has suggested a “laddered approach”. This would be a two-pronged approach that would fund military construction, Veterans Affairs, transportation, housing and the Energy Department until January 19, 2024 and the rest of the government until February 2, 2024. Johnson has made it clear that he does not like the omnibus bills traditionally passed in the hectic weeks before the holiday recess. Democrats are against this plan, fearing a drawn out and protracted fight over spending in the new year. As of November 14, 2023, reporters at CNN have independently identified eight House Republicans opposed to the laddered approach, meaning Johnson would need bipartisan assistance to get his spending bill over the finish line.

President Biden has been noncommittal, recognizing that negotiations are ongoing and he will not make a judgment about what type of bill he would sign or veto until it has passed the House.