FMC launches investigation into key maritime chokepoints

The Federal Maritime Commission has launched a nonadjudicatory investigation into transit constraints at key maritime chokepoints, focusing on the impact of foreign laws, regulations, and shipping practices.

The investigation will focus into transit constraints affecting key global shipping chokepoints, including the English Channel, Malacca Strait, Northern Sea Passage, Singapore Strait, Panama Canal, Strait of Gibraltar, and Suez Canal. These bottlenecks have created conditions that may be unfavorable to U.S. foreign trade, prompting the Commission to assess the impact of foreign regulations, competitive practices, and other factors under its statutory mandate.

Each chokepoint presents unique challenges:

RelatedNews

Vessel with aluminium cargo reroutes as U.S. imposes tariffs

ICS and CMI launch maritime treaty ratification campaign

congestion and security issues in the English Channel;
piracy and shallow waters in the Malacca Strait;
geopolitical tensions over the Northern Sea Passage;
navigational hazards and environmental risks in the Singapore Strait;
capacity limits and drought-related concerns at the Panama Canal;
high traffic and geopolitical disputes at the Strait of Gibraltar; and vulnerabilities in the Suez Canal, as highlighted by the Ever Given blockage in 2021.

Other disruptions, such as the 2024 Baltimore bridge collision, also demonstrate the fragility of maritime trade routes.

The FMC’s investigation will evaluate whether these constraints result from foreign governments’ actions or shipping industry practices. It will collect public input on the causes and effects of transit limitations, potential remedies, and obstacles to addressing these issues.

Remedial measures the Commission can take in issuing regulations to address conditions unfavorable to shipping in U.S. foreign trade include refusing entry to U.S. ports by vessels registered in countries responsible for creating unfavorable conditions.

The Commission’s General Counsel will lead the investigation and provide quarterly updates. Stakeholders, including shipping companies, industry groups, and environmental organizations, are invited to submit comments to inform the FMC’s policy decisions and potential regulatory actions.

Maritime chokepoints are defined as critical points along transport routes that facilitate the passage of substantial trade volumes, which serve as vital arteries for global commerce, connecting important regions worldwide. Due to limited alternative routes, disruptions can lead to negative impacts in supply chains and to systemic consequences that affect food security, energy supply and the global economy.