US Federal Maritime Commission launches investigation into flags of convenience
29 May 2025
The United States Federal Maritime Commission has opened an investigation into whether the vessel flagging laws, regulations, or practices of foreign governments create shipping conditions that have a negative impact on US foreign trade. The investigation has commenced with a 90-day public comment period, with the agency seeking examples of flagging laws, regulations, and practices that endanger the efficiency and reliability of the ocean shipping supply chain.
In a notice released on the Commission 's website on National Maritime Day (22 May), the agency said it is especially concerned with 'a race to the bottom' in which registries compete to gain a competitive edge by lowering standards and loosening compliance requirements.
'By offering to register and flag vessels with little or no oversight or regulation, countries may compete against one another to gain revenue from the associated fees and to minimise the expenses associated with inspecting vessels and ensuring compliance with appropriate maintenance and safety requirements,' the notice added.
It further stated that in the opinion of the Commission the International Maritime Organization lacks the authority to enforce vessel registry standards or penalise non-compliant nations and called for a 'comprehensive and enforceable approach ' to curb abuses.
A new report by Nautilus International and the International Organization of Masters Mates and Pilots union, a Nautilus Federation affiliate, highlights a sharp decline in national-flagged vessels and qualified seafarers across NATO, exposing serious gaps in operational readiness and maritime security.
The Commission's investigation ties in with this? new report into flags of convenience released by Nautilus International, which highlights the security risk posed by the arrangement to NATO countries.
The Nautilus collaborative NATO report demonstrates that reliance on foreign-flagged vessels and foreign crews undermines flag-state accountability and weakens NATO 's ability to respond to crises, hybrid threats, and geopolitical instability.
Securing NATO's maritime backbone
Explore a vital new report, NATO Member States' National Merchant Fleet and Seafarers. A collaboration with Nautilus International and the International Organization of Masters, Mates & Pilots developed by developed by Estelle Arnette who has decades of experience with the International Transport Workers' Federation and the European Transport Workers' Federation.
The report examines the alarming decline in NATO-owned merchant fleets and seafarers. It highlights the serious implications for maritime security resilience and offers actionable recommendations for NATO members.
Download now to understand the risks – and how to secure the future of NATO’s maritime strength.
Tags