An Order of Investigation just launched by the Federal Maritime Commission targets the Central American Shipping Registry and seven waterways considered strategic
FMC Launching Examination of Global Maritime Chokepoints
MSC, which has historically always chosen the Panamanian flag for its container cargo ships
Not only the Panama Canal but also Panamanian-flagged ships are at risk of ending up in the crosshairs of the United States according to Shipping Italy report
Transit Constraints at International Maritime Chokepoints
This is clearly evident from the Order of Investigation Into Transit Constraints at International Maritime Chokepoints launched in recent days by the US Federal Maritime Commission FMC, which has thus launched an investigation into transit restrictions at international maritime chokepoints with particular reference to the effects of laws, regulations or practices of foreign governments, as well as practices implemented by owners or operators of foreign-flagged vessels
A 60-day comment period
The review is initiated with an opportunity for public participation through a 60-day comment period. The Commission is specifically interested in responses from foreign governments, container shipping companies, vessel owners, bulk cargo operators, and tramp operators to six specific questions listed in the Federal Register notice announcing this action.
The Commission initiated this action using authorities found at 46 U.S.C. § 42101 and 46 C.F.R. § 502.281 and 502.282.
North American economy
All with the usual goal set by President Donald Trump to make the local North American economy and industry more competitive. The deadline for submitting comments and observations on the matter is May 13, 2025.
Limitations on transits
The introduction states that, “based on available information, there appear to be limitations on transits through the English Channel, the Strait of Malacca, the North Sea Passage, the Strait of Singapore, the Panama Canal, the Strait of Gibraltar, and Suez Canal the and these constraints “may have created maritime transportation conditions that require careful consideration by the Federal Maritime Commission (Commission) in connection with the determination of its policies and the performance of its duties.”
FMC :Transit Constraints at International Maritime Chokepoints
Monitor and evaluate conditions affecting shipping
The FMC first recalls that it has “a statutory mandate to monitor and evaluate conditions affecting shipping in foreign commerce of the United States.” In particular, section 42101(a) states that the Commission “shall prescribe regulations affecting shipping in foreign commerce… to accommodate or accommodate general or special conditions unfavorable to shipping in foreign commerce,” when such conditions are the result of laws or regulations of a foreign country or “competitive methods, pricing practices, or other practices” employed by owners, operators, or agents of “vessels of a foreign country.”
The Strait of Gibraltar
As for the Strait of Gibraltar, “just eight miles wide – writes the FMC – it is one of the world’s busiest shipping lanes, with heavy traffic and limited space for large vessels, increasing the risk of collisions, congestion and delays, especially during peak periods.
Navigational challenges such as strong currents, winds and fog further complicate the passage, while environmental risks such as oil spills and pollution, combined with stringent regulations, create further constraints.
Geopolitical tensions between Spain, Morocco and issues surrounding the status of Gibraltar, along with piracy and smuggling, contribute to security concerns and potential disruption in the region”.
The Panama Canal
Instead, as already known, the Panama Canal is the waterway on which the Trump administration is focusing most of its attention.
The Federal Maritime Commission FMC document states: “Although the Panama Canal underwent a significant expansion in 2016 with the addition of a third set of locks to accommodate ‘New Panamax’ vessels, it still faces significant capacity constraints and cannot accommodate the largest vessels, such as ultra-large container ships.
Costly disruptions to global supply chains
During periods of high demand, congestion leads to delays, causing costly disruptions to global supply chains. […] The Panama Canal also has significant geopolitical importance, crucial to U.S. interests. Political instability or disruptions in its operation could have far-reaching consequences.”
The Panamanian Naval Registry
The Order of Investigation finally highlights that “The Panamanian Naval Registry is one of the largest naval registries in the world, with over 8,000 vessels registered under the Panamanian flag.
The corrective measures that the Commission may adopt in issuing regulations to address unfavorable shipping conditions in the foreign commerce of the United States include the refusal of entry into United States ports by vessels registered in countries responsible for creating unfavorable conditions”.
United States, threatens prevent access to its ports to ships registered and flying the flag of the Central American country
The message addressed to the Government of Panama therefore, not even too implicit, is that the United States, if they want, can prevent access to its ports to ships registered and flying the flag of the Central American country, thus inducing shipowners to change their registry.
A hypothesis that would deeply affect many international shipping companies, starting with the first in the world in the container sector, namely MSC, which has historically always chosen the Panamanian flag for its container cargo ships.
