FMC Launches Probe into Global Shipping Chokepoints

The Federal Maritime Commission (FMC) has initiated an investigation into the impact of transit constraints at seven major maritime chokepoints, citing concerns over worsening global shipping conditions. According to a Federal Register notice, the FMC will assess bottlenecks at the Northern Sea Passage, English Channel, Malacca Strait, Singapore Strait, Strait of Gibraltar, Panama Canal, and Suez Canal to determine whether foreign regulations, government actions, or the practices of vessel operators are contributing to delays and inefficiencies. The notice stated that 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 actions of foreign-flag vessel operators.

As part of its regulatory review, the FMC has warned that container vessels registered under countries responsible for worsening shipping conditions at these chokepoints could face restrictions on entry to U.S. ports. The agency cited specific concerns at each chokepoint. At the English Channel – Heavy congestion, limited passing areas, and strong tidal currents increase risks for vessels. At Panama Canal – Despite its 2016 expansion, capacity limitations continue, preventing the passage of ultra-large container ships and causing delays. At Suez Canal – Handling 12% of global trade, its narrow, single-lane format frequently leads to congestion, as seen in the Ever Given incident of 2021. The canal is also vulnerable to geopolitical risks, including conflicts involving the Houthis and tensions in Gaza.

Industry Input Requests the FMC is seeking comments from government agencies, shipping companies, vessel owners, bulk cargo operators, and other industry stakeholders on the causes and consequences of transit constraints. The commission has outlined key areas for input, including the financial and environmental impact of chokepoint congestion, the role of foreign regulations and shipping companies in creating bottlenecks, projections for continued disruptions through 2025, and recommendations for short- and long-term solutions to improve shipping efficiency.

The investigation comes amid ongoing supply chain disruptions and rising trade costs. The FMC’s findings could lead to regulatory actions that reshape U.S. shipping policies and global trade operations.