[Federal Register Volume 84, Number 83 (Tuesday, April 30, 2019)]
[Notices]
[Pages 18284-18285]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-08692]


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FEDERAL MARITIME COMMISSION


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 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: Tyler J. Wood, 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 directly or indirectly 
owned or controlled by a government. 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.
    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)), provides that the Commission may, after providing 
notice and opportunity for a hearing, prohibit the publication or use 
of a rate, charge,

[[Page 18285]]

classification, rule, or regulation that a controlled carrier has 
failed to demonstrate is just and reasonable. 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(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 August 2, 2017 (82 FR 
35946), the Commission has newly classified the following ocean common 
carriers as controlled carriers: Orient Overseas Container Line Limited 
(OOCL) and OOCL (Europe) Limited. Pursuant to 46 CFR 501.23, the 
Commission's General Counsel classified OOCL and OOCL (Europe) as 
controlled carriers on August 16, 2018, after their parent company was 
acquired by COSCO SHIPPING Holdings Co., Ltd.\1\ Additionally, COSCO 
Shipping Lines (Europe) GmbH, which was removed from the controlled 
carriers list in 2017 after canceling all tariffs, resumed service in 
April 2018 and is again added to this list. COSCO Shipping Lines 
(Europe) GmbH was originally classified as a controlled carrier on 
November 9, 2015. See Petition of COSCO Container Lines Europe GmbH for 
an Exemption, Petition No. P3-15, slip op. (FMC Nov. 9, 2015).
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    \1\ More information on this transaction can be found in 
Petition of Cosco Shipping Lines Co., Ltd. (COSCO), Orient Overseas 
Container Line Limited (OOCL), and OOCL (Europe) Limited for an 
Exemption from Agreement Filing, Pet. No. P2-17 (Nov. 8, 2017).
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    The Commission is removing CNAN Nord SPA from the list as it 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 COSCO Shipping Lines Co., Ltd.
    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. 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) 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) COSCO Shipping Lines (Europe) GmbH (RPI No. 025509)--People's 
Republic of China.

    By the Commission.
Rachel Dickon,
Secretary.
[FR Doc. 2019-08692 Filed 4-29-19; 8:45 am]
 BILLING CODE 6731-AA-P