Michael A. Khouri, Chairman, US Federal Maritime Commission

https://fmc.gov/
Author picture

Michael A. Khouri

The year 2020 has been unlike any other. The efforts of all maritime personnel on ships and shoreside who kept the cargo moving remind us of the critical importance of ocean supply chains and the need to remove barriers between origins and destinations.

Regulations can be as much of an obstacle to the efficient movement of cargo as any physical barrier. As such, the Federal Maritime Commission (FMC) has sought to reduce regulatory requirements that can impede the fluidity of commerce. A regulatory review process commenced four years ago has led to several changes benefitting both industry and consumer. The commission delivered relief to industry last spring when we provided temporary authority for carriers to file service contracts up to 30 days after they became effective. This COVID‑19--related relief was well received, and after additional analysis, the FMC has initiated a rulemaking to make this a permanent regulatory change.

Keeping store shelves stocked and materials delivered to manufacturers brought attention to the fundamentally essential nature of ocean cargo to our nation’s economy. Ocean carrier agreements are beneficial to US shippers and consumers. They help to maintain competition and choice in the marketplace. However, alliances require close monitoring due to their potential for anticompetitive behavior. The unusual circumstances and challenges created by the COVID-19 pandemic have increased the Commission’s scrutiny of capacity reductions by global alliances. The FMC receives and examines exhaustive amounts of information from regulated entities to determine trends in the marketplace and the potential for illegal behavior. Any indication of carrier behavior that may violate the law will be immediately addressed. If necessary, we will seek an injunction to halt further operation of such alliance agreement. Whether during normal times or during a pandemic, the Federal Maritime Commission is firmly committed to ensuring competition and integrity for America’s ocean supply chain.