Background

On 22 May 2025, the U.S. Federal Maritime Commission (FMC) published on the official Federal Register website an Order of Investigation into ‘flags of convenience’ and unfavourable conditions created by certain flagging practices.

This non-adjudicatory investigation has been launched within the FMC’s mandate to monitor and evaluate conditions that affect shipping in the foreign trade of the U.S. It will explore whether worldwide vessel flagging laws, regulations, or practices of foreign countries, including so-called ‘flags of convenience’, or competitive methods employed by the owners, operators, agents, or masters of foreign-flagged vessels, are creating unfavourable shipping conditions in the foreign trade of the U.S. It will also aim to identify “best practices” that contribute to responsible and safe operations of vessels as a critical component of a reliable and efficient ocean shipping system in the U.S. foreign trade.

It is not clear at this stage whether this FMC investigation is connected to other motives and efforts within the U.S. administration to bolster the U.S. flag.

The FMC has invited comments on the public docket (by 20 August 2025) from all interested stakeholders to assist its investigation and is particularly interested in input from international standards setting organisations such as the IMO, countries with large ship registries, and individuals and organisations with expertise or experience in vessel operations, international trade, international law and national security.

Next steps

The ICS Secretariat is discussing this matter internally and liaising with the Chamber of Shipping of America and other international associations to gather further insights on the FMC’s objectives and potential strategic responses from the global shipping industry.

ICS will be preparing comments over the coming months to submit to this investigation and will endeavour to schedule a members’ call over the coming weeks to update on and discuss this matter further.

If HKSOA Members have any comments that they wish to be forwarded to the ICS, to assist in submitting a reposes to the FMC, please send them in so we can consolidate a response to the ICS from the HKSOA.