FMC to probe 7 ocean chokepoints to improve shipping conditions

The Federal Maritime Commission is investigating whether transit constraints at maritime chokepoints are creating poor ocean shipping conditions.

The FMC will examine seven chokepoints, including the Northern Sea Passage, English Channel, Malacca Strait, Singapore Strait, Strait of Gibraltar, Panama Canal and Suez Canal, per a Federal Register notice filed March 14.

“The Commission will investigate whether constraints in global maritime chokepoints 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 notice.

As a remedial measure, container vessels registered to countries deemed responsible for poor shipping conditions at chokepoints may be barred from entering U.S. ports, the FMC warned.

Transit conditions

The FMC outlined its assessment of conditions at each chokepoint in the notice.

For instance, the English Channel experiences congestion, limited passing opportunities and an elevated risk of collisions, per the notice. The channel also experiences strong tidal currents and several hazards, including shallow areas and sandbanks.

While the Panama Canal was expanded in 2016, the FMC reported that the channel still has capacity limitations and cannot accommodate ultra-large container vessels. With 8,000 vessels reportedly registered under the Panamanian flag, per the notice, the channel is more vulnerable to delays and higher supply chain costs due to congestion.

The Suez Canal, which handles up to 12% of global trade, has a “narrow width and single-lane format” that often creates delays, especially during peak season, said the FMC. In 2021, the Ever Given megaship blocked the canal for days, preventing hundreds of ships from transiting through the waterway. The canal is also prone to weather-related risks due to its shallow depth, per the notice.

“The canal’s strategic importance also makes it a focal point for geopolitical tensions, including conflicts involving the Houthis and the Gaza Crisis, as well as threats from piracy and terrorism,” said the FMC.

Public comment period

The commission is providing a way for parties to provide information, perspectives and proposed solutions to the issues it raised in the notice through a public comment period. Possible remedial measures the FMC could take to address constraints at the chokepoints would occur later in the process.

The FMC is seeking comments from government authorities and container shipping interests, tramp operators, bulk cargo interests, vessel owners and anyone else with “relevant information or perspectives” on the following:

• The causes, nature and effects, including financial and environmental effects, of constraints on the named maritime chokepoints
• The extent of constraints related to the laws, regulations, practices, actions and/or inactions of foreign governments
• The extent to which constraints are linked to the practices, actions or inactions of owners or op…