The U.S. Federal Maritime Commission is launching an investigation into Canada’s ballast water regulations

The U.S. Federal Maritime Commission, an independent agency responsible for regulating the U.S. international maritime transportation system, has launched an investigation to examine whether upcoming Canadian regulations on ballast water management systems in U.S.-Canada Great Lakes trade will have an unfair impact on U.S.-flagged vessels.

The investigation will determine whether these regulations, scheduled to take effect for some vessels in September 2024, violate foreign shipping practices under 46 USC Chapter 423.

U.S. companies active in trade with the Great Lakes have expressed concerns that the upcoming regulations will place a heavy burden on their operations and give an unfair advantage to their Canadian counterparts.

Title 46, Chapter 423 of the United States Code authorizes the Commission to examine foreign laws and practices that may adversely affect U.S. maritime carriers.

The new ballast water regulations aim to reduce aquatic invasive species and protect biodiversity in Canadian waters. The regulations move from mid-ocean ballast water exchange to modern management systems that purify ballast water before release. Canada seeks regulatory compatibility with the United States and requires U.S. ships to follow the same rules when operating in Canada, except for those merely transiting Canadian waters.

The Commission has found sufficient evidence related to Canada’s ballast water regulations to open an investigation into foreign shipping practices. The investigation will be led by the commission’s general counsel, who will issue a report on its findings and recommendations within the next 120 days unless extensions are approved.

The Commission is actively seeking public comments on the investigation and has opened a submission portal for comments until June 21, 2024. If the investigation concludes that there has been a violation of the Foreign Shipping Practices Regulations, sanctions may be imposed on Canadian-flagged ships, including restrictions on calling U.S. ports and significant fees.

This investigation is part of the Government of Canada’s ongoing review of policies and regulations impacting U.S. flag operators in the Great Lakes Islands. The Lake Carriers’ Association, a trade group representing U.S.-flagged companies in the Great Lakes, originally brought this issue to the Commission’s attention in March 2020. The Commission then initiated, under its authority, an investigation into regulations affecting foreign commerce shipping under 46 USC Chapter 421.

Unlock exclusive insights today!

Join the gCaptain Club for curated content, insider opinions, and lively community discussions.