The Federal Maritime Commission (Commission) ( FMC ) has exercised its statutory authority to initiate a non-adjudicatory investigation into transit constraints at international maritime choke-points, particularly concerning the effects of the laws, regulations or practices of foreign governments, and the practices of owners or operators of foreign-flag vessels, on shipping conditions in these choke-points.
Based on available information, it appears that constraints on transits through the English Channel, the Malacca Strait, the Northern Sea Passage, the Singapore Strait, the Panama Canal, the Strait of Gibraltar, and the Suez Canal may have created shipping conditions that call for careful consideration by the Federal Maritime Commission (Commission) in connection with the determination of its policies and the carrying out of its duties.
(A.) English Channel
The English Channel, with its narrow width of 21 miles and heavy traffic, experiences congestion, limited passing opportunities, and an elevated risk of collisions, especially near busy ports like Dover and Calais Navigational challenges are compounded by strong tidal currents, variable weather conditions, and hazards such as shallow areas and sandbanks, requiring precise maneuvering.
The region’s strict environmental regulations, geopolitical tensions, security risks, and ongoing issues like smuggling and illegal migration can further cause delays and disruptions. Additionally, political developments, border controls, and customs checks add complexities, with the Channel’s proximity to sensitive areas between the UK and France sometimes leading to heightened security concerns.
(B.) Malacca Strait
The Malacca Strait, with its narrow width, shallow areas, and limited navigational infrastructure in remote sections, presents significant challenges for large vessels, particularly in low visibility or harsh weather conditions such as monsoons, storms, and strong currents. These factors increase the risk of accidents and restrict the passage of deep-draft vessels. The high traffic volume, especially during peak seasons, leads to congestion, delays, and limited passing opportunities, further heightening the risk of accidents. Piracy, including hijackings and robberies, remains a significant concern, particularly in remote areas, while regional political instability and territorial disputes create additional security risks and potential disruptions [2] to transit.
(C.) Northern Sea Passage
The Northern Sea Passage is emerging as a critical maritime chokepoint as new shipping routes open, a development that could reshape global trade patterns. As the region’s waters become ice-free for longer periods, the Northern Sea Passage offers a shortcut between Europe and Asia, reducing travel time and fuel consumption. However, this has sparked competition over governance, with Russia seeking control over the shortest maritime route between Europe and Asia, and imposing fees, while other nations push for international access. The Northern Sea Passage’s strategic importance is further amplified by increased military activity from Russia and China, including new bases [3] and icebreakers,[4] reflecting its growing value for nuclear deterrence and missile defense. As a result, both Russia and NATO forces are ramping up their military presence, increasing the potential for tensions and conflicts [5] over access to the region’s trade routes and resources.
(D.) Singapore Strait
The narrow Singapore Strait presents significant challenges for maritime navigation, with limited passing opportunities that increase delays and the risk of accidents, particularly for large vessels that require precise navigation in congested areas. Shallow zones restrict the passage of deep-draft vessels, necessitating careful maneuvering to avoid grounding.[6] The Strait is also subject to unpredictable weather conditions, including heavy rains, storms, and strong currents, which can slow vessel movement and complicate navigation, especially for larger ships. Environmental risks such as oil spills, marine pollution, and stringent regulations further constrain passage and cause delays. Although piracy has decreased, the Strait still faces security threats, including hijackings and robberies [7] in remote areas, along with potential disruptions due to regional political tensions.
(E.) Panama Canal
While the Panama Canal underwent a major expansion in 2016 with the addition of a third set of locks to accommodate “New Panamax” vessels,[8] it still faces significant capacity limitations and cannot accommodate the largest ships, such as ultra-large container vessels. During periods of high demand, congestion leads to delays, causing costly disruptions to global supply chains.[9] The canal relies on freshwater from nearby lakes to operate its locks, and prolonged droughts, exacerbated by unpredictable rainfall patterns, can significantly reduce available water levels, impacting its functionality and efficiency. These environmental factors increase the canal’s vulnerability to operational disruptions, especially during dry spells.
The Panama Canal also holds substantial geopolitical importance, crucial to the interests of the United States. Political instability or disruptions in its operation could have far-reaching consequences.
Panama’s Ship Registry is one of the world’s largest ship registries with over 8,000 vessels reportedly registered under the Panamanian flag. 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.
(F.) Strait of Gibraltar
The Strait of Gibraltar, at just eight miles wide, is one of the world’s busiest shipping lanes, with heavy traffic and limited space for large vessels, raising the risk of collisions, congestion, and delays, especially during peak periods.[10] Navigational challenges such as strong currents, winds, and fog further complicate passage, while environmental risks like oil spills and pollution, along with strict regulations, create additional constraints. Geopolitical tensions between Spain, Morocco,[11] and issues surrounding the status of Gibraltar, along with piracy and smuggling, contribute to security concerns and potential disruptions in the region.
(G.) Suez Canal
The Suez Canal, handling between 10% and 12% of global trade,[12] is one of the busiest waterways in the world. Its narrow width and single-lane format often leads to delays, especially during peak seasons. Events such as the 2021 Ever Given blockage highlighted the canal’s vulnerabilities, causing massive trade disruptions,[13] while its shallow depth makes it prone to weather-related issues, further increasing the risk of accidents. The canal’s strategic importance also makes it a focal point for geopolitical tensions, including conflicts involving the Houthis and the Gaza Crisis,[14] as well as threats from piracy and terrorism. Additionally, environmental concerns have arisen due to the potential spread of invasive species by ships passing through the waterway.
(H.) Other Transit Constraints
The Commission notes that other significant constraints affecting U.S. shipping may arise quickly in the global maritime environment. For example, when the Singapore-flagged containership Dali struck a bridge in Baltimore, Maryland in March 2024, six people were killed and maritime access to the Port of Baltimore was blocked, a situation that persisted for many weeks and led to losses that have been estimated to reach as high as $4 billion.
Source : Federal Register
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