US investigates maritime shipping practices impacting foreign trade

US investigates maritime shipping practices impacting foreign trade

The FMC will look into government laws, regulations, and practices that create maritime chokepoints across the globe

by Manal Barakat, SeaNewsEditor


In a recent public document, the Federal Maritime Commission (FMC) announced launching an investigation into the laws, regulations, and practices of foreign governments whose shipping conditions are constraining US foreign trade by sea.

 

The commission also intends to investigate the practices of owners or operators of foreign-flag vessels that contribute to such constraints.

 

The FMC specified several locations described as maritime "chokepoints " and asked interested parties to submit their comments and experiences before mid-May 2025.

 

"Constraints on transits through the English Channel, the Malacca Strait, the Northern Sea Passage, the Singapore Strait, the Panama Canal, the Strait of Gibraltar, and the Suez Canal may have created shipping conditions that call for careful consideration," writes the FMC.

 

According to analysts, this could lead to barring container ships from some countries from entry to US ports, including Panama-flagged ships.

 

"Despite its 2016 expansion, the Panama Canal still faces capacity limitations and congestion, causing delays and disruptions to global supply chains," says the FMC.

 

The commission states that environmental factors like droughts and geopolitical issues "increase the canal's vulnerability to operational disruptions."

 

"Remedial measures the Commission can take in issuing regulations to address conditions unfavourable to shipping in U.S. foreign trade include refusing entry to U.S. ports by vessels registered in countries responsible for creating unfavourable conditions."

 

The Panama Canal attracted extensive attention in the past few weeks, especially after the recent acquisition deal of Hutchison Ports' terminal assets.

 

The agreement covers Hutchison Ports' 90% ownership of the Panamanian ports that will now go to TIL, the terminal operating arm of MSC, and consortium partners BlackRock and Global Infrastructure Partners.

 

However, China recently heavily criticised the deal and urged Hutchison to reconsider terminal sales.

 

 

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Source: FMC, Shipping Watch