[Federal Register Volume 89, Number 126 (Monday, July 1, 2024)]
[Notices]
[Pages 54460-54461]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-14447]


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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. 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

[[Page 54461]]

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 February 27, 2024. 
See 89 FR 14495. This notice revises the list to add HMM as a 
controlled carrier of the government of the Republic of Korea. It is 
also noted that the United States and the Republic of Korea signed a 
Treaty of Friendship, Commerce and Navigation that entered into force 
on November 7, 1957. As such, HMM is entitled to the exception at 46 
U.S.C. 40706(1), which exempts it from the requirements of Title 46, 
Chapter 407, but not from the provisions of 46 U.S.C. 40502(f) and 46 
U.S.C. 46106(b)(7).
    There are no changes to report with respect to the remaining 
controlled carriers on the list.
    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;
    (5) HMM (RPI No. 001452)--Republic of Korea.

    By the Commission.
David Eng,
Secretary.
[FR Doc. 2024-14447 Filed 6-28-24; 8:45 am]
BILLING CODE 6730-02-P