FMC Seeking Comments on Canadian Shipping Requirement
The Federal Maritime Commission is seeking additional comments on a petition filed by the Lake Carriers’ Association, which said the Canadian government is imposing “unfavorable” conditions on U.S.-Canada shipping and trade. The FMC initially requested comments after receiving the association’s petition in 2020 but announced a new comment period this week because of recent “developments which impact the Commission’s consideration” of the petition. Comments are due March 7.
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The Lake Carriers’ Association, which is composed of U.S. vessel-operators serving the Great Lakes, told the FMC in 2020 that Transport Canada, a Canadian government agency, was trying to purposely “drive out U.S. vessels” in the lake region. The Canadian agency had proposed new regulations to require vessels to install “ballast water management systems,” which the association said served no environmental purpose and only increased compliance costs for U.S. vessels. If Canada adopted the rule, the association said, the U.S. should impose a $300,000 fee each time a Canadian vessel enters any U.S. port.
Although a majority of public comments on the petition sided with the association, the FMC said at the time that further action was “premature” because the Canadian agency was still considering the proposed requirement. Canada eventually finalized the requirement in June with no changes to the ballast water requirement, and the FMC said it’s now continuing to investigate the regulation. The FMC said the rule takes effect in 2024 with a delayed implementation period until 2030 for vessels built before 2009.
The FMC is specifically seeking more feedback as it investigates the Lake Carriers’ Association’s allegations and prepares a set of recommendations. The commission is accepting comments on how the Canadian regulation will affect U.S.-flagged ships, their business models and more.