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FMC Launches Investigation into Container Shipping Choke Points

The Federal Maritime Commission may consider prohibiting foreign container ships from entering U.S. ports—if the countries in which they’re registered are causing choke points in key global shipping lanes (Freight Waves).

What’s going on: “In a notice published on [March 13], the FMC announced it would be launching an investigation into transit constraints that the agency says could be creating unfavorable conditions for shipping in U.S. foreign trade.”

  • The choke points being targeted are the Suez Canal, the Panama Canal, the English Channel, the Malacca Strait, the Singapore Strait, the Northern Sea Passage and the Strait of Gibraltar.
  • “The Commission will investigate whether constraints in global maritime choke points have created unfavorable shipping conditions caused by the laws, regulations or practices of foreign governments or the practices of foreign-flag vessel owners or operators,” according to the published FMC order.

Why it’s important: “FMC summarized the significance and threat potential of each location,” Freight Waves reports. “It pointed out, for example, that in addition to geopolitical concerns at the Panama Canal, ship hijackings and robberies are a ‘significant concern’ in the Malacca Strait between Malaysia and Indonesia; Russia is ramping up its military forces in the Northern Sea Passage, which provides a shortcut between Europe and Asia; and strict regulations are causing delays along the Singapore Strait.”

Have a say: The FMC is accepting comments, due May 13, “from government authorities and container shipping interests as well as bulk cargo interests, vessel owners, individuals and groups” able to weigh in on the causes and effects of “constraints on the choke points,” long- and short-term steps the FMC could take to alleviate those constraints, obstacles to implementing alleviation measures and more.

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