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[Federal Register Volume 89, Number 235 (Friday, December 6, 2024)]
[Notices]
[Pages 96973-96974]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-28709]

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FEDERAL MARITIME COMMISSION

[Docket No. FMC-2024-0022]

Investigation Into Conditions Affecting Shipping in the Foreign 
Trade and Denial of Entry of Vessels Into Spanish Ports

AGENCY: Federal Maritime Commission.

ACTION: Notice of investigation and request for comments.

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SUMMARY: The Federal Maritime Commission has initiated an investigation 
into reports that the Government of Spain (Spain) is creating 
conditions unfavorable to shipping in the foreign trade of the United 
States by denying entry to its ports to certain vessels, including 
those participating in the Maritime Security Program.

DATES: Submit comments on or before December 26, 2024.

ADDRESSES: You may submit comments, identified by Docket No. FMC-2024-
0022, by the following method:
    Federal eRulemaking Portal: Your comments must be written and in 
English. You may submit your comments electronically through the 
Federal eRulemaking Portal at www.regulations.gov. To submit comments 
on that site, search for Docket No. FMC-2024-0022 and follow the 
instructions provided.

FOR FURTHER INFORMATION CONTACT: For questions regarding submitting 
comments or the treatment of any confidential information, contact 
David Eng, Secretary; Phone: (202) 523-5725; Email: [email protected].

SUPPLEMENTARY INFORMATION:

I. Introduction

    On November 19, 2024, the Federal Maritime Commission (Commission) 
was informed that Spain had denied entry to its ports to at least three 
vessels, including some that are participants in the United States 
Maritime Administration's (MARAD) Maritime Security Program (MSP). The 
Commission is concerned that this apparent policy of denying entry to 
certain vessels will create conditions unfavorable to shipping in the 
foreign trade, whether in a particular route or in commerce generally. 
Chapter 421 of U.S. Code Title 46, section 42101, authorizes the 
Commission to investigate and, if necessary, adopt regulations to 
adjust or meet such conditions. Remedies under Chapter 421 include, but 
are not limited to, refusal of entry to vessels of a country that is 
named in the Commission's regulations and fines of up to $2,304,629 per 
voyage. 46 U.S.C. 42106(4), 42107(1)(a); 46 CFR part 506.

II. Summary of Investigation

    The Commission's statutory authority includes the mandate to 
monitor and evaluate conditions that affect shipping in the foreign 
trade of the United States. 46 U.S.C. 42101(a).\1\ Chapter 421 
encourages the maintenance of a United States merchant marine for the 
national defense and the development of domestic and foreign commerce. 
46 U.S.C. 50101(b). Under a separate statutory provision, the 
Commission can also investigate whether a foreign government is unduly 
impairing the access of a vessel documented under the laws of the 
United States to ocean trade between foreign ports and take any action 
it finds appropriate to remedy any such violation. 46 U.S.C. 41108(d).
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    \1\ The Commission may also investigate whether a foreign 
government or carrier's practices result in adverse impacts on 
United States carriers or United States oceanborne trade or creates 
conditions that do not exist for foreign carriers in the United 
States under the laws of the United States. 46 U.S. Code, Chapter 
423. At this time, the Commission is not initiating an investigation 
pursuant to Chapter 423.
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    The Commission has consistently held that its powers do not only 
protect United States flagged shipping, and that foreign governmental 
actions that are detrimental to third-flag carriers can create 
conditions unfavorable to shipping in the United States foreign trade 
within the meaning of Chapter 421. Petition of Ace Line, 19 S.R.R. 481, 
482 (FMC 1979). In the past, the Commission has investigated port 
practices in Japan that included restrictive and discriminatory 
licensing practices and refusals to grant licenses to United States 
carriers. Port Restrictions and Requirements in the United States/Japan 
Trade, 62 FR 9696, 9699 (March 4, 1997). The Commission has also 
investigated conditions created in the United States-Korea, United 
States-Taiwan, and United States-Venezuela trades. See Randy L. 
Baldemor, Comment Federal Maritime Commission Sanctions on Japanese 
Carriers: A Call for Fairer Methods of Resolving Disputes, 8 Pac. Rim L 
& Pol'y J. 109, at 116 (1999).
    The Commission received information on November 19, 2024, 
indicating that Spain is denying entry into Spanish ports to certain 
vessels. Spain appears to have denied docking privileges to the Maersk 
Denver in early November. Maersk Line Vessel Diverts to Morocco Due to 
Allegations in Spain, The Maritime Executive, November 11, 2024 
(available at https://maritime-executive.com/article/maersk-line-
vessel-diverts-to-morocco-due-to-

[[Page 96974]]

allegations-in-spain) (last visited November 20, 2024). That vessel was 
owned and operated by a participant in the MARAD MSP Fleet and the 
vessel appears to have been receiving a retainer from MARAD in exchange 
for availability during times of need. See Maritime Security Program 
[verbar] MARAD, (https://www.maritime.dot.gov/national-security/strategic-sealift/maritime-security-program-msp) (last visited November 
20, 2024). Spain also appears to have denied entry to the Maersk 
Seletar, another MSP participant vessel, in early November.\2\ Though 
not a participant in the MSP, another vessel appears to have been 
refused docking privileges in May. Spain Denies Port of Call to Ship 
Carrying Arms to Israel, The Guardian, May 16, 2024 (available at 
https://www.theguardian.com/world/article/2024/may/16/spain-denies-port-of-call-to-ship-carrying-arms-to-israel) (last accessed November 
20, 2024).
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    \2\ See also https://www.maritime.dot.gov/sites/marad.dot.gov/files/2022-08/MSP%20Fleet%20%208-1-2022.pdf for a list of vessels 
participating in the MSP.
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    MARAD's MSP maintains a fleet of commercially viable, militarily 
useful merchant ships active in international trade. The MSP fleet is 
available to support U.S. Department of Defense (DoD) sustainment 
sealift requirements during times of conflict or in other national 
emergencies. The program also provides DoD access to MSP participants' 
global intermodal transportation network of terminals, facilities, 
logistic management services, and U.S. citizen merchant mariners.
    The Commission's statutory purposes include ensuring an efficient, 
competitive, and economical transportation system in the United States, 
encouraging the development of an economically sound and efficient 
liner fleet capable of meeting national security needs and supporting 
commerce, and promoting the growth and development of United States 
exports through competitive and efficient carriage of goods by water. 
46 U.S.C. 40101. A law or policy by a foreign government that refuses 
entry to vessels documented under the laws of the United States is 
inconsistent with the Commission's goal of ensuring access to and 
supporting the complex and interdependent system for the common 
carriage of goods by water in foreign commerce. The Commission has 
therefore determined that it will investigate the apparent decision by 
Spain to deny entry to vessels participating in MARAD's MSP, as well as 
its apparent decision to deny entry to other vessels.
    At this initial stage of the investigation, the Commission will 
focus on providing a route for interested parties, including the 
Government of Spain and common carriers that have been denied entry 
into Spanish ports, to provide information, perspectives, and proposed 
solutions.

III. Investigation and Initial Request for Comments

    The Commission has determined that the above situation meets the 
threshold requirements for consideration under the relevant statutory 
and regulatory authority. See 46 U.S.C. 42101; 46 CFR part 550. The 
Commission therefore initiates an investigation into whether the 
situation has created conditions that are unfavorable to shipping in 
foreign trade, whether in a particular trade or on a particular route 
or in commerce generally. See 46 U.S.C. 42101(a); 46 CFR 550.301. To 
that end, the Commission has designated the General Counsel to lead an 
investigation into the conditions and to prepare a report on the 
investigation's findings and recommendations for Commission 
consideration. The Commission has further determined to ask interested 
persons to submit written comments containing arguments, experiences, 
and/or data relevant to denials of entry into Spanish ports. In 
particular, the Commission seeks information about when this has 
occurred, the vessels that have been denied entry, and any reason or 
reasons given for the denial.
    The Commission's jurisdiction under 46 U.S.C. 42101 is broad, and 
the agency welcomes comments not only from the Government of Spain, but 
also from container shipping interests, vessel owners, individuals and 
groups with relevant information on commercial considerations, and 
anyone else with relevant information or perspectives on this matter.
    As the Commission proceeds with this investigation, it may 
determine to request additional comment or gather information through 
other means as authorized under 46 U.S.C. 40104 and 42104, and 46 CFR 
part 550.

    By the Commission.
David Eng,
Secretary.
[FR Doc. 2024-28709 Filed 12-5-24; 8:45 am]
BILLING CODE 6730-02-P
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