The Federal Maritime Commission in Washington announced it is conducting a non-adjudicatory investigation to examine whether the vessel flagging laws, regulations, or practices of certain foreign governments create unfavorable shipping conditions in the foreign trade of the United States. It coupled its announcement with a claim that the approach of the International Maritime Organization (IMO) “has not brought about meaningful change nor deterrence to what is clearly a growing global problem.”
The investigation commences with a 90-day public comment period with an August 20 deadline for submitting stakeholder comments.
The FMC said it is seeking examples of unfavorable flagging laws, regulations, and practices that endanger the efficiency and reliability of the ocean shipping supply chain. The specific topics of Commission interest are enumerated in the order announcing this investigation.
The Commission is particularly interested in receiving comments from individuals and organizations with expertise or experience in vessel operations, international trade, international law, and national security. Examples of such commenters include other governments, international organizations, standards-setting organizations, shipowners, shipping companies, shippers, and organized labor groups.
Commenters may also identify actions that high-quality registries can take to lower costs and compliance burdens so long as they do not result in diluting standards.
“Patchwork policies and uneven compliance have proven ineffective in ensuring the reliability and efficiency of ocean shipping,” the FMC asserted, in the latest broadside aimed at the IMO by the Trump Administration following last April’s decision to boycott the the Marine Environment Protection Committee meeting at IMO headquarters in London. “Naming and shaming countries suspected of flagging or operating shadow fleets or using flags of convenience does not prevent such practices and often leads to further concealment of illicit activities. Additionally, the lack of standardized definitions for terms like flag of convenience, open registry, fraudulent registry and shadow/dark fleet makes problems more difficult to identify, and successfully regulate, on a global scale.
“As the IMO lacks the authority to enforce vessel registry standards or penalize non-compliant nations, its efforts are unlikely to serve as an effective deterrent or bring about meaningful change to curb abuses. A comprehensive and enforceable approach is needed,” the FMC alleged.
(Image of FMC logo)