Notice2024-28709
Investigation Into Conditions Affecting Shipping in the Foreign Trade and Denial of Entry of Vessels Into Spanish Ports
Primary source
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Published
December 6, 2024
Issuing agencies
Federal Maritime Commission
Abstract
The Federal Maritime Commission has initiated an investigation into reports that the Government of Spain (Spain) is creating conditions unfavorable to shipping in the foreign trade of the United States by denying entry to its ports to certain vessels, including those participating in the Maritime Security Program.
Full Text
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<title>Federal Register, Volume 89 Issue 235 (Friday, December 6, 2024)</title>
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[Federal Register Volume 89, Number 235 (Friday, December 6, 2024)]
[Notices]
[Pages 96973-96974]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-28709]
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FEDERAL MARITIME COMMISSION
[Docket No. FMC-2024-0022]
Investigation Into Conditions Affecting Shipping in the Foreign
Trade and Denial of Entry of Vessels Into Spanish Ports
AGENCY: Federal Maritime Commission.
ACTION: Notice of investigation and request for comments.
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SUMMARY: The Federal Maritime Commission has initiated an investigation
into reports that the Government of Spain (Spain) is creating
conditions unfavorable to shipping in the foreign trade of the United
States by denying entry to its ports to certain vessels, including
those participating in the Maritime Security Program.
DATES: Submit comments on or before December 26, 2024.
ADDRESSES: You may submit comments, identified by Docket No. FMC-2024-
0022, by the following method:
Federal eRulemaking Portal: Your comments must be written and in
English. You may submit your comments electronically through the
Federal eRulemaking Portal at <a href="http://www.regulations.gov">www.regulations.gov</a>. To submit comments
on that site, search for Docket No. FMC-2024-0022 and follow the
instructions provided.
FOR FURTHER INFORMATION CONTACT: For questions regarding submitting
comments or the treatment of any confidential information, contact
David Eng, Secretary; Phone: (202) 523-5725; Email: <a href="/cdn-cgi/l/email-protection#b7e4d2d4c5d2c3d6c5cef7d1dad499d0d8c1"><span class="__cf_email__" data-cfemail="87d4e2e4f5e2f3e6f5fec7e1eae4a9e0e8f1">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION:
I. Introduction
On November 19, 2024, the Federal Maritime Commission (Commission)
was informed that Spain had denied entry to its ports to at least three
vessels, including some that are participants in the United States
Maritime Administration's (MARAD) Maritime Security Program (MSP). The
Commission is concerned that this apparent policy of denying entry to
certain vessels will create conditions unfavorable to shipping in the
foreign trade, whether in a particular route or in commerce generally.
Chapter 421 of U.S. Code Title 46, section 42101, authorizes the
Commission to investigate and, if necessary, adopt regulations to
adjust or meet such conditions. Remedies under Chapter 421 include, but
are not limited to, refusal of entry to vessels of a country that is
named in the Commission's regulations and fines of up to $2,304,629 per
voyage. 46 U.S.C. 42106(4), 42107(1)(a); 46 CFR part 506.
II. Summary of Investigation
The Commission's statutory authority includes the mandate to
monitor and evaluate conditions that affect shipping in the foreign
trade of the United States. 46 U.S.C. 42101(a).\1\ Chapter 421
encourages the maintenance of a United States merchant marine for the
national defense and the development of domestic and foreign commerce.
46 U.S.C. 50101(b). Under a separate statutory provision, the
Commission can also investigate whether a foreign government is unduly
impairing the access of a vessel documented under the laws of the
United States to ocean trade between foreign ports and take any action
it finds appropriate to remedy any such violation. 46 U.S.C. 41108(d).
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\1\ The Commission may also investigate whether a foreign
government or carrier's practices result in adverse impacts on
United States carriers or United States oceanborne trade or creates
conditions that do not exist for foreign carriers in the United
States under the laws of the United States. 46 U.S. Code, Chapter
423. At this time, the Commission is not initiating an investigation
pursuant to Chapter 423.
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The Commission has consistently held that its powers do not only
protect United States flagged shipping, and that foreign governmental
actions that are detrimental to third-flag carriers can create
conditions unfavorable to shipping in the United States foreign trade
within the meaning of Chapter 421. Petition of Ace Line, 19 S.R.R. 481,
482 (FMC 1979). In the past, the Commission has investigated port
practices in Japan that included restrictive and discriminatory
licensing practices and refusals to grant licenses to United States
carriers. Port Restrictions and Requirements in the United States/Japan
Trade, 62 FR 9696, 9699 (March 4, 1997). The Commission has also
investigated conditions created in the United States-Korea, United
States-Taiwan, and United States-Venezuela trades. See Randy L.
Baldemor, Comment Federal Maritime Commission Sanctions on Japanese
Carriers: A Call for Fairer Methods of Resolving Disputes, 8 Pac. Rim L
& Pol'y J. 109, at 116 (1999).
The Commission received information on November 19, 2024,
indicating that Spain is denying entry into Spanish ports to certain
vessels. Spain appears to have denied docking privileges to the Maersk
Denver in early November. Maersk Line Vessel Diverts to Morocco Due to
Allegations in Spain, The Maritime Executive, November 11, 2024
(available at https://maritime-executive.com/article/maersk-line-
vessel-diverts-to-morocco-due-to-
[[Page 96974]]
allegations-in-spain) (last visited November 20, 2024). That vessel was
owned and operated by a participant in the MARAD MSP Fleet and the
vessel appears to have been receiving a retainer from MARAD in exchange
for availability during times of need. See Maritime Security Program
[verbar] MARAD, (<a href="https://www.maritime.dot.gov/national-security/strategic-sealift/maritime-security-program-msp">https://www.maritime.dot.gov/national-security/strategic-sealift/maritime-security-program-msp</a>) (last visited November
20, 2024). Spain also appears to have denied entry to the Maersk
Seletar, another MSP participant vessel, in early November.\2\ Though
not a participant in the MSP, another vessel appears to have been
refused docking privileges in May. Spain Denies Port of Call to Ship
Carrying Arms to Israel, The Guardian, May 16, 2024 (available at
<a href="https://www.theguardian.com/world/article/2024/may/16/spain-denies-port-of-call-to-ship-carrying-arms-to-israel">https://www.theguardian.com/world/article/2024/may/16/spain-denies-port-of-call-to-ship-carrying-arms-to-israel</a>) (last accessed November
20, 2024).
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\2\ See also <a href="https://www.maritime.dot.gov/sites/marad.dot.gov/files/2022-08/MSP%20Fleet%20%208-1-2022.pdf">https://www.maritime.dot.gov/sites/marad.dot.gov/files/2022-08/MSP%20Fleet%20%208-1-2022.pdf</a> for a list of vessels
participating in the MSP.
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MARAD's MSP maintains a fleet of commercially viable, militarily
useful merchant ships active in international trade. The MSP fleet is
available to support U.S. Department of Defense (DoD) sustainment
sealift requirements during times of conflict or in other national
emergencies. The program also provides DoD access to MSP participants'
global intermodal transportation network of terminals, facilities,
logistic management services, and U.S. citizen merchant mariners.
The Commission's statutory purposes include ensuring an efficient,
competitive, and economical transportation system in the United States,
encouraging the development of an economically sound and efficient
liner fleet capable of meeting national security needs and supporting
commerce, and promoting the growth and development of United States
exports through competitive and efficient carriage of goods by water.
46 U.S.C. 40101. A law or policy by a foreign government that refuses
entry to vessels documented under the laws of the United States is
inconsistent with the Commission's goal of ensuring access to and
supporting the complex and interdependent system for the common
carriage of goods by water in foreign commerce. The Commission has
therefore determined that it will investigate the apparent decision by
Spain to deny entry to vessels participating in MARAD's MSP, as well as
its apparent decision to deny entry to other vessels.
At this initial stage of the investigation, the Commission will
focus on providing a route for interested parties, including the
Government of Spain and common carriers that have been denied entry
into Spanish ports, to provide information, perspectives, and proposed
solutions.
III. Investigation and Initial Request for Comments
The Commission has determined that the above situation meets the
threshold requirements for consideration under the relevant statutory
and regulatory authority. See 46 U.S.C. 42101; 46 CFR part 550. The
Commission therefore initiates an investigation into whether the
situation has created conditions that are unfavorable to shipping in
foreign trade, whether in a particular trade or on a particular route
or in commerce generally. See 46 U.S.C. 42101(a); 46 CFR 550.301. To
that end, the Commission has designated the General Counsel to lead an
investigation into the conditions and to prepare a report on the
investigation's findings and recommendations for Commission
consideration. The Commission has further determined to ask interested
persons to submit written comments containing arguments, experiences,
and/or data relevant to denials of entry into Spanish ports. In
particular, the Commission seeks information about when this has
occurred, the vessels that have been denied entry, and any reason or
reasons given for the denial.
The Commission's jurisdiction under 46 U.S.C. 42101 is broad, and
the agency welcomes comments not only from the Government of Spain, but
also from container shipping interests, vessel owners, individuals and
groups with relevant information on commercial considerations, and
anyone else with relevant information or perspectives on this matter.
As the Commission proceeds with this investigation, it may
determine to request additional comment or gather information through
other means as authorized under 46 U.S.C. 40104 and 42104, and 46 CFR
part 550.
By the Commission.
David Eng,
Secretary.
[FR Doc. 2024-28709 Filed 12-5-24; 8:45 am]
BILLING CODE 6730-02-P
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