The Federal Maritime Commission has initiated a non-adjudicatory investigation into whether (1) the vessel flagging laws, regulations, or practices of foreign countries, including so-called flags of convenience, or (2) competitive methods employed by the owners, operators, agents, or masters of foreign-flagged vessels, are creating unfavorable shipping conditions in the foreign trade of the U.S. Comments on these issues are due no later than Aug. 22.
The FMC states that while many foreign nations take great care in creating standards for vessels flagged by their registries, others register and flag vessels with little or no oversight or regulation, which can endanger “the efficiency, reliability, and safety of the vessels used in the ocean shipping supply chain.” The FMC’s investigation will therefore assess vessel flagging laws, regulations, and practices, including those that allow or contribute to unsafe conditions that endanger and imperil the reliability and efficiency of ocean shipping, and identify best practices that contribute to responsible and safe vessel operations.
To that end the FMC is inviting comments from shippers, carriers, governments, and non-governmental organizations on the following.
- specific examples of responsible or unfavorable flagging laws, regulations, practices, and proposals and how they contribute to or endanger the efficiency and reliability of the ocean shipping supply chain
- practices by owners or operators of vessels (e.g., with respect to insurance, maintenance, safety, and navigation) that undermine the efficiency and reliability of international ocean shipping
- the benefits to international ocean shipping of responsible vessel registration and flagging practices and how FMC regulations could support them
- the burdens of irresponsible flagging practices to foreign nations and vessel operators or owners
The FMC states that it is currently focused on encouraging comments but also indicates that it is interested in a “comprehensive and enforceable approach” to resolving associated problems.
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