Topic of the week: FMC Investigates Spain's Alleged Blocking of US Ships
The Federal Maritime Commission (FMC) has launched an investigation into allegations that Spain has been denying entry to certain US-flagged vessels, including those participating in the US Maritime Administration's (MarAd) Maritime Security Programme (MSP). The investigation comes after reports emerged that at least three US-flagged vessels, including two MSP container ships, were denied docking privileges in early November. The MSP provides a financial stipend to US-flagged commercial vessels in exchange for providing military sealift to the federal government. The FMC is concerned that Spain's alleged policy of denying entry to certain vessels could create conditions unfavourable to shipping in the foreign trade.
The investigation is ongoing, and the FMC is soliciting comments from container shipping interests, vessel owners, and anyone else with relevant information or perspectives on the matter. Remedies under US law include blocking Spain's vessels from docking at US ports and fines of up to $2.3 million per voyage. Separately, Spanish authorities have denied entry to a Danish-flagged ship, the Marianne Danica, citing the shipment of military weapons to Israel. The FMC did not mention whether the MSP vessels were also carrying arms cargo to Israel.
The investigation is expected to have implications for the global shipping industry, particularly for US-flagged vessels operating in the Mediterranean and Middle East regions. The outcome of the investigation could lead to changes in Spain's port access policies and potentially impact trade flows in the region. The FMC's investigation is a significant development, as it highlights the importance of ensuring fair and equal access to ports for all vessels, regardless of their flag.
Industry stakeholders are closely watching the investigation, with some calling for increased transparency and cooperation between the US and Spain. The outcome of the investigation will be closely monitored, with potential implications for trade relations and economic cooperation between the two countries. In the short term, the investigation is unlikely to have a significant impact on the global shipping market, but it could lead to long-term changes in trade flows and port access policies.
The FMC's investigation is a reminder of the importance of ensuring fair and equal access to ports for all vessels, regardless of their flag. The agency's actions demonstrate its commitment to protecting the interests of US-flagged vessels and promoting fair trade practices. As the investigation continues, industry stakeholders will be closely monitoring the developments and waiting for the outcome, which could have significant implications for the global shipping industry.
Sea:
- Over the last two weeks China/East Asia to North America West Coast spot rates have decreased by 8.2% from $5,345/FEU to $4,904/FEU according to Freightos data.
- China/East Asia to North America East Coast spot rates have risen over the last two weeks, increasing by 12.9% to $6,095/FEU.
- Global container spot prices have risen over the last two weeks, and are now sitting at $3,661/FEU, a 1.3% increase over the last two weeks and a 188% increase from spot rates this time in 2023 according to the Freightos Baltic Index (FBX)
Air:
- Global Air Freight spot rates currently sit at $2.73, as rates continue to fluctuate according to the Freightos Air Freight Index (FAX)
- Europe to Northern America spot rates currently sit at $2.81 (100-3000kg), says FAX, increasing by 25.4%
- Europe to Asia, Greater China spot rates currently sit at $1.20 (100-3000kg), says FAX, increasing by 2.5%
That’s all for this week’s update…
Check out our other insights and articles for more in depth industry news and trending topics, or get in contact to discuss some of our best in class freight forwarding services!
