The Federal Maritime Commission (FMC) in Washington DC has initiated an investigation into transit constraints at international maritime chokepoints. This inquiry focuses on the influence of foreign laws, regulations, or practices, as well as the actions of foreign-flag vessel operators, on shipping conditions. Key passages under scrutiny include the English Channel, Malacca Strait, Northern Sea Passage, Singapore Strait, Panama Canal, Strait of Gibraltar, and Suez Canal.
The FMC has stated, "Remedial measures the Commission can take in issuing regulations to address conditions unfavorable to shipping in U.S. foreign trade include refusing entry to U.S. ports by vessels registered in countries responsible for creating unfavorable conditions." This approach could impact international shipping routes and practices.
Since Donald Trump resumed office in Washington DC, the global trade framework has experienced disruptions. The administration has implemented tariffs, made claims on the Panama Canal, and proposed charges for Chinese-built ships entering the US, affecting global trade dynamics.
A report from broker Hartland Shipping noted, "As the Trump 2.0 reality show unfolds, as it does daily, often with singular market-moving tweets, we might as well suspend trying to make credible forecasts of future supply-demand balance across shipping sectors. Underwhelming spot earnings render shipping sentiment downbeat while we seek greater clarity on today's geopolitical, trade, and social threats."
Source: Splash 247