FMC Investigates "Unfavorable Conditions" at Maritime Choke Points

 

The Federal Maritime Commission has launched an investigation to look for unfavorable conditions for U.S. shipping at most major overseas maritime chokepoints. 

In a Federal Registry notice, the commission said that it will investigate whether "constraints in global maritime chokepoints have created unfavorable shipping conditions caused by the laws, regulations or practices of foreign governments or the practices of foreign-flag vessel owners or operators." FMC noted that it has the power of "refusing entry to U.S. ports by vessels registered in countries responsible for creating unfavorable conditions."

The sole foreign choke point operator with a large flag registry is Panama, and it is named in the FMC announcement. The White House has repeatedly threatened to annex the Panama Canal. 

"The FMC notice suggests that any such [regulatory] measures would primarily affect vessels registered under Panama’s flag, of which there are currently more than 8,000," noted trade and shipping law firm Sandler, Travis & Rosenberg in a client advisory. 

In addition to the Panama Canal, the named targets of investigation included the English Channel, the Malacca Strait, the Singapore Strait, the Russian-controlled Northern Sea Route, the Panama Canal, the Strait of Gibraltar and the Suez Canal.  

Possible subjects of investigation include foreign environmental regulations, geopolitical tensions, security risks, smuggling and illegal migration, border controls, customs checks, piracy, terrorism, military activity and traffic congestion. The early stage of the investigation is focused on fact-finding, and the commission is soliciting input from all shipping stakeholders, including shipowners, operators, and shippers.