Fair winds and unfavourable conditions

Ben Robinson, Chalos & Co, reports on the US Federal Maritime Commission confronting flags of convenience

In May 2025 the US Federal Maritime Commission (FMC) opened an investigation to examine whether foreign shipping laws and regulations, particularly those related to "flag of convenience" practices, have produced unfavorable conditions to the foreign trade of the US. While the FMC has previously launched investigations on its own initiative - not based on the complaint of an aggrieved shipping company or shipper - and it has investigated unfavorable conditions many times under the 1920-vintage Jones Act, this investigation is unique (and unprecedented) in its scope and potential impact.