Americas News
US Regulator Launches Probe into Foreign Flagging Practices
The US Federal Maritime Commission (FMC) has launched a formal investigation into the flagging laws, regulations, and practices of certain foreign governments.
The probe aims to determine whether these practices are creating unfavourable conditions for US foreign trade.
The non-adjudicatory investigation opens with a 90-day public comment period, the Commission said in a statement on its website on Wednesday.
During this time, the Commission seeks input on how foreign flagging practices may undermine the efficiency and reliability of the ocean shipping supply chain.
The FMC is particularly interested in feedback from stakeholders with expertise in vessel operations, international trade, maritime law, and national security. This includes shipowners, shippers, governments, international organisations, and labour groups.
Despite measures adopted by the IMO to address flags of convenience and fraudulent registries, the FMC says such practices remain a growing global issue.
The Commission cited the MV Dali incident, which led to the collapse of the Francis Scott Key Bridge in Baltimore last year, as an example. The ship was registered in the Marshall Islands, a flag the FMC noted is commonly used as a flag of convenience.
It also mentioned Malta as another example, as identified by some organisations.
The FMC has the authority to investigate and take enforcement action when foreign laws or practices disrupt fair and efficient maritime commerce.
Comments can be submitted before August 20.
