FMC launches probe into international flagging practices

The Federal Maritime Commission (FMC) has decided to conduct a nonadjudicatory investigation aimed at determining whether some foreign governments’ vessel flagging regulations and practices create “unfavorable” shipping conditions for the United States.

Specifically, the commission plans to examine whether the laws, regulations or the competitive methods utilized by shipowners, operators, agents or masters of foreign-flagged vessels violate statutes as set by the FMC, such as by facilitating ‘inauspicious’ conditions in the international trade of the US.

As disclosed, the initial stage of the investigation—which has a 90-day public comment period—is focused on encouraging comments on worldwide ship flagging practices from all interested stakeholders. The FMC has noted that commenters may also feel free to identify actionable steps high-quality registries can take to lower costs and compliance burdens, as long as these“do not result in diluting standards.”

Per the FMC, ships registered under responsible flag states operate under stringent regulatory frameworks aligned with international maritime standards, including the International Maritime Organization’s (IMO) Safety of Life at Sea (SOLAS), the International Convention for the Prevention of Pollution from Ships (MARPOL), and the