Controlled Carriers Under the Shipping Act of 1984, 14495 [2024-03990]

Agencies

• Federal Maritime Commission

[Federal Register Volume 89, Number 39 (Tuesday, February 27, 2024)]
[Notices]
[Page 14495]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-03990]


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FEDERAL MARITIME COMMISSION

[Docket No. FMC-2024-0005]


Controlled Carriers Under the Shipping Act of 1984

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, or whose operating assets are, directly or 
indirectly owned or controlled by foreign governments. Such carriers 
are subject to increased regulatory oversight by the Commission.

FOR FURTHER INFORMATION CONTACT: David Eng, Secretary; Phone: (202) 
523-5725; Email: [email protected].

SUPPLEMENTARY INFORMATION: The Federal Maritime Commission is updating 
the list of controlled carriers to add an entity that qualifies as a 
controlled carrier, and to remove an entity that no longer qualifies as 
a controlled carrier. The Shipping Act of 1984, as amended (Shipping 
Act), 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. 46 U.S.C. 40102(9). Ownership or control by 
a government is deemed to exist for a carrier if (1) 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 (2) 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. Id.; 46 CFR 565.2(a).
    As required by the Shipping Act, controlled carriers are subject to 
enhanced oversight by the Commission. For example, 46 U.S.C. 40701(b) 
provides that the Commission may, after providing notice and 
opportunity for a hearing, 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. See 46 U.S.C. 
40701(b). In addition, 46 U.S.C. 40502(f) provides that in an action 
for a breach of a service contract, the dispute resolution forum cannot 
in any way be controlled by or affiliated with a controlled carrier or 
by the government that owns or controls the carrier. See 46 U.S.C. 
40502(f). Congress enacted these protections to ensure that controlled 
carriers, 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(9). Thus, tramp operators and other non-common carriers are not 
included, nor are non-vessel-operating common carriers, regardless of 
their ownership or control.
    The controlled carrier list was last updated on April 30, 2019. See 
84 FR 18284. This notice revises the list to add Hede (HONGKONG) 
International Shipping Limited as a controlled carrier. This notice 
also revises the list to reflect that COSCO Shipping Lines (Europe) 
GmbH is no longer providing common carriage in the United States trades 
and is therefore no longer a controlled carrier. There are no changes 
to report with respect to the remaining controlled carriers.
    It is requested that any other information regarding possible 
omissions or inaccuracies in this list be provided to the Commission's 
Office of the General Counsel at [email protected]. See 46 CFR 
501.12.
    The amended list of currently classified controlled carriers and 
their corresponding Commission-issued Registered Persons Index numbers 
is set forth below:
    (1) COSCO SHIPPING Lines Co., Ltd. (RPI No. 015614)--People's 
Republic of China;
    (2) Orient Overseas Container Line Limited (RPI No. 011398)--
People's Republic of China;
    (3) OOCL (Europe) Limited (RPI No. 024786)--People's Republic of 
China;
    (4) Hede (HONGKONG) International Shipping Limited (RPI No. 
033332)--People's Republic of China.

    By the Commission.
David Eng,
Secretary.
[FR Doc. 2024-03990 Filed 2-26-24; 8:45 am]
BILLING CODE 6730-02-P