Coast Guard and Maritime Transportation Subcommittee Chairman Mike Ezell (R-MS) delivered his opening remarks on the July 22 listening to on the Federal Maritime Fee (FMC) funds request highlighting his curiosity within the impression of flags of comfort.
The FMC is an unbiased company accountable for the regulation of ocean-borne transportation within the overseas commerce of america.
Earlier this yr, the FMC introduced an investigation into vessel flagging legal guidelines, laws, and practices of overseas nations.
“I concern these so-called flags of comfort create unfavorable transport situations within the overseas commerce of america,” stated Ezell. “Many vessels conducting worldwide commerce fly flags that differ from the nation the place the possession is predicated. The FMC is analyzing whether or not sure flag states might have requirements that present vessels with decrease prices and oversight on the expense of reliability and security.
“In keeping with President Trump’s govt order to revive American maritime dominance, we’re working to bolster our home maritime capabilities, that are paramount to each the safety and financial development of our nation. I stay up for listening to from our witness on how the FMC plans to make United States maritime nice once more.”
Commissioner of the FMC, Rebecca F. Dye, spoke on the listening to about its investigation into flags of comfort, saying the Fee initiated an investigation of the flagging guidelines and practices of overseas governments in Might 2025. The 90-day public remark interval will shut on August 20, 2025.
“Preliminary indications are that vessel registration practices of sure overseas nations, so-called flags of comfort, are creating unfavorable transport situations within the overseas commerce of america. These flags allow unsafe vessels to function, and additional allow shadow fleet exercise and the evasion of sanctions,” she stated.
“There was a race to the underside—a state of affairs the place flag states compete by reducing requirements and easing compliance necessities, reducing the price of flagging vessels past some extent the place the effectivity, reliability, and security of the vessels used within the ocean transport provide chain could be assured. The usage of these flags of comfort endangers the U.S. ocean transport provide chain.”
The Fee will overview all filed feedback and decide subsequent steps later this yr.
“Sadly, not all overseas ship registries share a dedication with america to ocean transport integrity and accountability. This lack of ship registry accountability not solely disadvantages U.S.-flag transport, but additionally presents an issue in addressing smuggling operations, sanctions evasion, disguised possession, and different irregularities,” stated Dye.
“Aggressively investigating and imposing the regulation towards overseas conduct that disadvantages U.S.-flag pursuits is an incentive to registering ships underneath america flag, as america is ready to intervene legally on behalf of U.S.-flag vessels.
“Shipowners have a large number of choices to register their vessels, and the flexibility of the Federal Maritime Fee to take direct motion to implement the regulation towards discriminatory habits of different overseas governments or foreign-flag carriers, with the involvement of the President, Federal businesses, and Federal courts, is a novel profit to U.S.-flagged vessels.”
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