[Federal Register Volume 90, Number 103 (Friday, May 30, 2025)]
[Notices]
[Pages 23052-23054]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-09786]
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FEDERAL MARITIME COMMISSION
[Docket No. FMC-2025-0010]
Notice of Intent To Revoke Exemptions Granted to Certain
Controlled Carriers
AGENCY: Federal Maritime Commission.
ACTION: Notice and request for comments.
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SUMMARY: The Federal Maritime Commission (``Commission'') intends to
revoke certain exemptions that had been granted to some controlled
carriers, allowing for their rates, charges, classifications, rules or
regulations to become effective with less than thirty (30) days'
notice. This revocation would apply to exemptions that were granted to
entities that have since been removed from the Commission's list of
controlled carriers. Exemptions that have been granted to controlled
carriers that remain on this list would continue to be valid but may be
reviewed in the future. The Commission invites comments from the public
on this proposed action.
DATES: Submit comments on or before June 30, 2025.
[[Page 23053]]
ADDRESSES: You may submit comments, identified by Docket No. FMC-2025-
0010, by the following method:
Federal eRulemaking Portal: Your comments must be written and in
English. You may submit your comments electronically through the
Federal Rulemaking Portal at www.regulations,gov. Please refer to the
``Public Participation'' heading under the SUPPLEMENTARY INFORMATION
section of this notice for detailed instructions on how to submit
comments, including instructions on how to request confidential
treatment.
FOR FURTHER INFORMATION CONTACT: David Eng, Secretary; Phone: (202)
523-5725; Email: [email protected].
SUPPLEMENTARY INFORMATION:
I. Background
A controlled carrier is a vessel-operating common carrier that is
owned or controlled by a foreign government.\1\ Controlled carriers are
subject to enhanced regulatory oversight to ensure that they do not
abuse their subsidized position in the marketplace.\2\ One of the
provisions of 46 U.S.C. Chapter 407 stipulates that the tariff rates or
charges of controlled carriers cannot become effective until the 30th
day after their publication.\3\
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\1\ 46 U.S.C. 40102(9).
\2\ See 46 U.S.C. chapter 407.
\3\ 46 U.S.C. 40703.
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The Commission has previously granted exemptions to certain
controlled carriers from the requirements of 46 U.S.C. 40703, pursuant
to the administrative exemption authority found at 46 U.S.C. 40103.
Such exemptions allowed these controlled carriers' rates, charges,
classifications, rules and regulations to become effective less than 30
days after their publication. These exemptions did not change the
status of any of these carriers as controlled carriers; they are
limited to allowing the carrier's rates, charges, classifications,
rules or regulations to become effective in less than 30 days'
notice.\4\ The Commission also has the authority to revoke previously
granted administrative exemptions.\5\ In granting these exemptions from
section 40703, the Commission has declined to grant permanent
exemptions because doing so would impinge on the Commission's authority
to revoke them.\6\
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\4\ Id.
\5\ 46 U.S.C. 40103(a).
\6\ See, e.g., Petition of China Ocean Shipping (Group) Company
for a Partial Exemption from the Controlled Carrier Act, Docket No.
P3-99, Order Granting Petition in Part (April 1, 2004) (``The
Commission declines to make this exemption permanent, as the
Petition requests . . . a specific provision for `permanence' of
this Order would abrogate the Commission's authority under section
16 and its obligations under section 9 [of the Shipping Act of 1984]
. . . The Commission retains its full authority to revoke the
instant exemption subject to the requirements of section 16 of the
Shipping Act of 1984, 46 U.S.C. app. [sec.] 1715.'')
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In 2004, sections of the Shipping Act of 1984 were rearranged and
renumbered. Exemptions under section 9(c) of the Shipping Act that had
been codified at 46 U.S.C. 1708, allowing changes to controlled
carriers' rates, charges, classifications, rules or regulations to
become effective more quickly than 30 days after their publication with
Commission permission, were moved to 46 U.S.C. 40703. The statutory
language of the two sections is nearly identical. In addition,
Commission explanations suggest that the Commission did not view
exemptions under section 40703 differently than exemptions under
section 1708. For example, in granting a section 40703 exemption to
United Arab Shipping and Hainan P O Shipping, the Commission stated
that it ``has previously granted exemptions from [section] 40703'' and
cited to some exemptions that were granted under section 40703 and to
others that were granted under section 1708.\7\ As such, it is the
Commission's position that, historically, it has viewed the exemptions
granted under section 1708 to be equivalent to the exemptions granted
under section 40703.
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\7\ See Petition of United Arab Shipping Company (S.A.G.) for an
Exemption from the Controlled Carrier Act, Docket No. P1-14, Order
Granting Petition (July 16, 2015); Petition of Hainan P O Shipping
Co., Ltd. for an Exemption from the Controlled Carrier Act, Docket
No. P1-10, Order Granting Petition (December 9, 2010).
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II. Intent To Revoke Certain Exemptions Granted Under 46 U.S.C. 40703
Many of the entities to which the Commission granted exemptions
from 46 U.S.C. 40703 have since been removed from the Commission's list
of controlled carriers for various reasons, such as no longer offering
carriage in the U.S. trades or having been bought by private companies.
Because the Commission has declined to grant permanent exemptions,\8\
there should not be any expectations that these exemptions are
permanent. However, until now, the Commission has not revoked any
exemptions, even when an entity's circumstances have changed, such as
having been removed from the list of controlled carriers. Rather than
allowing that to create an expectation that an exemption remains valid
through such changes in circumstances, the Commission is giving notice
that it intends to revoke these exemptions.
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\8\ See, e.g., Petition of China Ocean Shipping (Group) Company
for a Partial Exemption from the Controlled Carrier Act, Docket No.
P3-99, Order Granting Petition in Part (April 1, 2004).
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The revocation of these exemptions would not prevent an entity from
petitioning for an exemption again, if its status changes such that it
again becomes classified as a controlled carrier. The Commission is
requesting comments regarding its intent to revoke these exemptions.
The Commission has granted exemptions to the following entities:
1. China Ocean Shipping (Group) Company on April 1, 2004 (now named
COSCO SHIPPING Lines Co., Ltd.); \9\
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\9\ Docket No. P3-99.
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2. China Shipping Container Lines Co., Ltd., on April 1, 2004; \10\
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\10\ Docket No. P4-03.
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3. Sinotrans Container Lines Co., Ltd. (SINOLINES), on April 1,
2004; \11\
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\11\ Docket No. P6-03.
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4. American President Lines, Ltd. and APL Co., Pte. Ltd., (one
ocean common carrier designated as ``APL'') on October 27, 2004; \12\
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\12\ Docket No. P5-04.
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5. China Shipping (Hong Kong) Container Lines Co., Ltd., on March
29, 2005; \13\
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\13\ Docket No. P6-04.
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6. Hainan P O Shipping Co., Ltd. (``Hainan Shipping Co.'') on
December 9, 2010; \14\
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\14\ Docket No. P1-10.
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7. United Arab Shipping Company (S.A.G.) (``United Arab Shipping
Company'') on July 16, 2015; \15\
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\15\ Docket No. P1-14.
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8. COSCO Container Lines Europe GmbH (``COSCO Europe'') on November
9, 2015; \16\
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\16\ Docket No. P3-15.
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9. Orient Overseas Container Line Limited (``OOCL'') on October 30,
2018; \17\ and
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\17\ Docket No. P2-18.
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10. OOCL (Europe) Limited on October 30, 2018.\18\
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\18\ Id.
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The following entities have since been removed from the list of
controlled carriers: \19\
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\19\ Federal Maritime Commission, Controlled Carrier List,
https://www.fmc.gov/databases-and-publications/controlled-carrier-list/ (last visited May 21, 2025).
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1. Sinotrans Container Lines Co., Ltd. on August 27, 2012;
2. Hainan Shipping Co. on August 2, 2017;
3. United Arab Shipping Company on August 2, 2017;
4. China Shipping Container Lines (Hong Kong) Company, Ltd. on
August 2, 2017;
5. China Shipping Container Lines on August 2, 2017;
[[Page 23054]]
6. American President Lines, Ltd. and APL Co. Pte, Ltd. on August
2, 2017; and
7. COSCO Europe on February 27, 2024.
The above-named entities listed as being removed from the list of
controlled carriers are no longer controlled carriers under 46 U.S.C.
40102(9), 46 U.S.C. chapter 407 and 46 CFR part 565. As a result, the
Commission finds that there is good cause to revoke their exemptions
and is issuing this notice of intent to revoke them.
The exemptions granted to OOCL,\20\ OOCL (Europe),\21\ and COSCO
SHIPPING Lines Co., Ltd.\22\ remain in place because these companies
are still on the Commission's list of controlled carriers. However, the
Commission may review these exemptions in the future.
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\20\ Id.
\21\ Id.
\22\ Docket No. P3-99.
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III. Public Participation
A. How do I prepare and submit comments?
You may submit comments by using the Federal eRulemaking Portal at
www.regulations.gov, under Docket No. FMC-2025-0010. Please follow the
instructions provided on the Federal eRulemaking Portal to submit
comments.
B. How do I submit confidential business information?
The Commission will provide confidential treatment for identified
confidential information to the extent allowed by law. If you would
like to request confidential treatment, pursuant to 46 CFR 502.5, you
must submit the following, by email, to [email protected]:
A transmittal letter that identifies the specific
information in the comments for which protection is sought and
demonstrates that the information is a trade secret or other
confidential research, development, or commercial information.
A confidential copy of your comments, consisting of the
complete filing with a cover page marked ``Confidential-Restricted,''
and the confidential material clearly marked on each page.
A public version of your comments with the confidential
information excluded. The public version must state ``Public Version--
confidential materials excluded'' on the cover page and on each
affected page and must clearly indicate any information withheld.
C. How can I read comments submitted by other people?
You may read the comments received by the Commission at
www.regulations.gov, under Docket No. FMC-2025-0010.
By the Commission.
David Eng,
Secretary.
[FR Doc. 2025-09786 Filed 5-29-25; 8:45 am]
BILLING CODE 6730-02-P