US Federal Maritime Commission launches investigation into impacts of Canadian ballast water treatment regulations

The U.S. Federal Maritime Commission (FMC) has initiated an investigation to determine whether pending Canadian regulations regarding ballast water management systems of vessels in the U.S.-Canadian Great Lakes trade have a disparate impact on U.S.-flagged vessels and constitute a violation of foreign shipping practices under 46 U.S.C., Chapter 423.

U.S.-based companies operating vessels in U.S.-Canada trade on the Great Lakes believe that Canadian regulations that will take effect for some vessels in September 2024 will impose a significant burden on their operations and put American companies and vessels at a disadvantage compared to their Canadian competitors.

Pursuant to Title 46, Chapter 423 of the United States Code, the FMC is authorized to investigate whether the laws, rules, regulations, policies, or practices of any foreign country result in conditions that adversely affect the operations of American carriers in the U.S. maritime commerce.

The Commission has concluded that there are sufficient facts relating to Canada’s ballast water regulations to justify an investigation into foreign shipping practices. The investigation will be led by the Commission’s General Counsel, who will prepare and submit a report containing his findings and recommendations for Commission action within 120 days, unless an extension is granted.

Interested citizens are invited to comment on the matters that prompted this investigation. Comments should be submitted through the Federal eRulemaking Portal by June 21, 2024.

Canadian vessels calling at U.S. ports face significant consequences if the FMC determines that the Foreign Shipping Practices Regulations have been violated. For example, in return for sanctions, Canadian vessels may be barred from calling at U.S. ports and significant fees may be imposed on Canadian vessels.

The announcement is a continuation of the Commission’s ongoing review of Canadian government policies and regulations that impact U.S. operators on the Great Lakes. A petition from the Lake Carriers’ Association (Petition P1-20), an industry association representing U.S. operators on the Great Lakes, previously brought the matter to the Commission’s attention in March 2020.

The Commission subsequently initiated an investigation into the regulations affecting shipping in foreign commerce, using its authority under 46 USC, Chapter 421.