U.S. FMC Probes Safety Risks Linked to Flags of Convenience in Maritime Operations

The U.S. Federal Maritime Commission (FMC) is diving into an examination focused on vessel flagging practices that could be detrimental to American shipping.This inquiry comes at a time when concerns about flags of convenience (FOC) are rising, particularly regarding their effects on safety and security in maritime operations.

This investigation features a 90-day public comment period, wrapping up on August 20, 2025. The FMC is reaching out to various stakeholders—think vessel operators, trade experts from around the globe, and labour organizations—to gather diverse perspectives.

A major issue highlighted by the Commission is what they call a “race to the bottom.” Some countries are lowering standards and simplifying compliance requirements just to attract more business. Unfortunately, this frequently enough leads to less oversight and fewer inspections of vessels, which can compromise safety.

recent events have underscored the urgency of these issues. For instance,in March 2024,the MV Dali—a ship registered in the Marshall Islands but flagged in Singapore—lost power and crashed into Baltimore’s Francis Scott Key Bridge,leading to its collapse. Just weeks later near New york’s Verrazzano Bridge, another close call occurred wiht the Malta-flagged APL Qingdao.

The investigation also aims to tackle “shadow fleets,” which consist of ships operating outside standard maritime regulations often for illicit purposes or evading sanctions. These vessels frequently disable their Automatic Identification Systems (AIS) and use fake documents for operations.

A recent study by Windward has raised alarms about GPS jamming trends; it found that vessels’ average “jump” distance when AIS signals are jammed skyrocketed from 600 km in late 2024 to an astonishing 6,300 km early this year. This makes tracking these ships nearly unfeasible within any practical geographical area.

Through this inquiry, the FMC hopes to pinpoint best practices that promote responsible vessel operations while ensuring U.S. ocean shipping remains reliable and efficient. They’ve noted that current international efforts—including those led by organizations like the International Maritime Organization (IMO)—have not effectively tackled these pressing challenges.

Best practices for responsible flagging include adhering strictly to international regulations such as SOLAS (Safety of Life at Sea), MARPOL (Marine Pollution), and STCW (Standards of Training Certification & watchkeeping). Vessels following these guidelines tend to uphold higher operational standards while providing better working conditions for crews and greater openness regarding ownership structures.This investigation marks a crucial move toward addressing systemic issues within maritime commerce as highlighted by FMC officials: “One malfunctioning vessel can disrupt port operations for weeks or longer,” impacting global trade flows substantially.

Stakeholders are encouraged to share their thoughts on problematic flagging practices along with potential solutions aimed at maintaining high safety standards without inflating costs unnecessarily.

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