25.09.05FMC Drawing Attention as Investigation Into FOC Vessels Ends

The U.S. Federal Maritime Commission (FMC) is drawing attention regarding what to do with flag-of-convenience (FOC) vessels.

On May 21, the FMC announced it would initiate a non-adjudicatory investigation into whether the vessel flagging laws of certain foreign countries and  competitive methods employed by owners, operators, agents or masters of foreign-flagged vessels are creating unfavorable shipping conditions in U.S. foreign trade. On Aug. 20, a public comment period, as part of the investigation, ended.

In particular, the FMC has explained that it would be closely examining the questions of whether FOC vessels are unfavorably impacting the foreign trade of U.S. trade that is already facing looming disruptions due to tariff-related volume swings. Further in the background, flashbacks of the Dali disaster in Baltimore are on the minds of regulators and cargo shippers; a final report from the National Transportation Safety Bureau (NTSB) on that late March 2024 allision is still several months away.