The Federal Maritime Commission (FMC) has initiated a nonadjudicatory investigation into transit constraints at key international maritime chokepoints, citing potential unfavorable conditions for shipping in U.S. foreign trade.
The investigation, announced in a recent order, will examine the effects of foreign government laws, regulations, and practices, as well as the actions of foreign-flag vessel owners and operators on shipping conditions in critical waterways.
The FMC has identified seven major chokepoints for scrutiny:
- English Channel
- Malacca Strait
- Northern Sea Passage
- Singapore Strait
- Panama Canal
- Strait of Gibraltar
- Suez Canal
Each of these waterways faces unique challenges, ranging from navigational hazards and congestion to geopolitical tensions and environmental concerns. The commission noted that these constraints could significantly impact global trade flows and U.S. shipping interests.
"Recent events have indicated that transit constraints at several critical points in the global shipping supply chain have led to conditions that are appropriate for the Commission to investigate," the FMC stated in its order.
The agency is particularly concerned about the potential for foreign government actions or vessel operator practices to create unfavorable shipping conditions. The FMC's statutory mandate includes the authority to prescribe regulations to address such issues in U.S. foreign trade.
As part of the investigation, the FMC is seeking public comments from a wide range of stakeholders, including government authorities, container shipping interests, tramp operators, bulk cargo interests, vessel owners, and environmental groups. The commission has outlined specific questions for comment, focusing on the causes, nature, and effects of transit constraints, as well as potential solutions and obstacles to implementation.
The FMC's General Counsel will lead the investigation and provide quarterly updates to the commission. The agency may also initiate specific proceedings under its statutory authority as the investigation progresses.
Interested parties have until May 13, 2025, to submit comments through the Federal eRulemaking Portal.
The investigation comes amid growing concerns about the vulnerability of global supply chains to disruptions at key maritime chokepoints, as highlighted by recent incidents such as the 2021 Suez Canal blockage and the March 2024 bridge collision in Baltimore.
