Controlled Carriers Under the Shipping Act of 1984, 51801 [2012-21009]

Agencies

• Federal Maritime Commission

[Federal Register Volume 77, Number 166 (Monday, August 27, 2012)]
[Notices]
[Page 51801]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-21009]


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FEDERAL MARITIME COMMISSION


Controlled Carriers Under the Shipping Act of 1984

August 22, 2012.
AGENCY: Federal Maritime Commission.

ACTION: Notice.

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SUMMARY: The Federal Maritime Commission is publishing an updated list 
of controlled carriers, i.e., ocean common carriers operating in U.S.-
foreign trades that are owned or controlled by foreign governments. 
Such carriers are subject to special regulatory oversight by the 
Commission under the Shipping Act of 1984.

FOR FURTHER INFORMATION CONTACT: Rebecca A. Fenneman, General Counsel, 
Federal Maritime Commission, 800 North Capitol Street NW., Washington, 
DC 20573, (202) 523-5740.

SUPPLEMENTARY INFORMATION: The Federal Maritime Commission is 
publishing an updated list of controlled carriers. Section 3(8) of the 
Shipping Act of 1984 (46 U.S.C. 40102(8)), defines a ``controlled 
carrier'' as:
    An ocean common carrier that is, or whose operating assets are, 
directly or indirectly, owned or controlled by a government, with 
ownership or control by a government being deemed to exist for a 
carrier if--
    (A) A majority of the interest in the carrier is owned or 
controlled in any manner by that government, an agency of that 
government, or a public or private person controlled by that 
government; or
    (B) That government has the right to appoint or disapprove the 
appointment of a majority of the directors, the chief operating 
officer, or the chief executive officer of the carrier.
    As required by the Shipping Act, controlled carriers are subject to 
special oversight by the Commission. Section 9(a) of the Shipping Act 
(46 U.S.C. 40701(b)), states:
    The Federal Maritime Commission, at any time after notice and 
opportunity for a hearing, may prohibit the publication or use of a 
rate, charge, classification, rule, or regulation that a controlled 
carrier has failed to demonstrate is just and reasonable.
    Congress enacted these protections to ensure that controlled 
carries, whose marketplace decision-making can be influenced by foreign 
governmental priorities or by their access to non-market sources of 
capital, do not engage in unreasonable below-market pricing practices 
which could disrupt trade or harm privately-owned shipping companies.
    The controlled carrier list is not a comprehensive list of foreign-
owned or -controlled ships or ship owners; rather, it is only a list of 
ocean common carriers that are controlled by governments. See 46 U.S.C. 
40102(8). Thus, tramp operators and other non-common carriers are not 
included, nor are non-vessel-operating common carriers, regardless of 
their ownership or control.
    Since the last publication of this list on May 10, 2005 (70 FR 
24581), the Commission has newly classified one ocean common carrier as 
a controlled carrier, Hainan P O Shipping Co., Ltd. (``P O Shipping''), 
and removed four common carriers from the controlled carrier list: 
Ceylon Shipping Corporation (``Ceylon''); Compagnie Nationale 
Algerienne de Navigation (``CNAN''); Sinotrans Container Lines Co., 
Ltd. (d/b/a Sinolines) (``Sinotrans''); and The Shipping Corporation of 
India Ltd. (``SCI'').
    Pursuant to 46 CFR 501.23, P O Shipping was classified as a 
controlled carrier on July 23, 2010.
    As part of a general review of common carriers subject to 
regulation by the Commission, Ceylon was determined to be inactive as 
of March 20, 2012. See 76 FR 70448; FMC Docket No. 11-20 Publication of 
Inaccurate or Inactive Ocean Common Carrier Tariffs.
    CNAN has also been removed from the list, as it no longer operates 
as an ocean common carrier. All CNAN tariffs in U.S.-foreign trades 
were cancelled effective February 24, 2011.
    Sinotrans is being removed from the list, as it no longer operates 
as an ocean common carrier in the U.S.-foreign trades, although a 
related company operates as a non-vessel-operating common carriers 
(``NVOCC'') in the U.S.-foreign trades.
    SCI is also being removed from the list as it no longer does 
business in the U.S.-foreign trades. All SCI tariffs in U.S.-foreign 
trades were cancelled effective February 21, 2011.
    China Shipping Container Lines Co., Ltd. and China Shipping 
Container Lines (Hong Kong) Company, Ltd. are now a single organization 
(RPI No. 019270).
    It is requested that any other information regarding possible 
omissions or inaccuracies in this list be provided to the Commission's 
Office of General Counsel. See 46 CFR 501.23. The amended list of 
currently classified controlled carriers and their corresponding 
Commission-issued Registered Persons Index numbers is set forth below:
    (1) American President Lines, Ltd and APL Co., Pte. (RPI No. 
000240)--Republic of Singapore;
    (2) COSCO Container Lines Company, Limited (RPI No. 015614)--
People's Republic of China;
    (3) China Shipping Container Lines Co., Ltd and China Shipping 
Container Lines (Hong Kong) Co., Limited (RPI No. 019270)--People's 
Republic of China;
    (4) Hainan P O Shipping Co., Ltd. (RPI No. 022860)--People's 
Republic of China.

Karen V. Gregory,
Secretary.
[FR Doc. 2012-21009 Filed 8-24-12; 8:45 am]
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