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U.S. Launches Investigation into Global Shipping Choke Points

The Federal Maritime Commission (FMC) is investigating global shipping choke points that may be threatening U.S. supply chains, with potential actions including barring foreign container ships from U.S. ports if their registered countries are found responsible for creating transit constraints.

In a notice issued Thursday, the FMC announced the launch of an inquiry into transit disruptions that may be leading to unfavorable conditions in U.S. foreign trade. The agency will examine the impact of these constraints and whether they stem from foreign governments’ policies, regulations, or the practices of foreign-flagged vessel operators.

The FMC has identified seven critical maritime chokepoints for investigation: the English Channel, the Malacca Strait, the Northern Sea Passage, the Singapore Strait, the Panama Canal, the Strait of Gibraltar, and the Suez Canal.

“Based on available data, constraints on transits through these routes may be creating conditions that require careful review as part of the Commission’s policymaking and oversight duties,” the agency stated.

Global Hotspots Under Scrutiny

The FMC outlined the potential risks and significance of each location:

  • Panama Canal: Geopolitical concerns and water shortages have contributed to shipping delays.

  • Malacca Strait: A vital route between Malaysia and Indonesia, where ship hijackings and robberies remain a pressing concern.

  • Northern Sea Passage: Russia has intensified military activity along this Arctic route, which serves as a shortcut between Europe and Asia.

  • Singapore Strait: Stringent regulations have caused congestion and delays.

  • English Channel: Political developments, border controls, and customs checks complicate operations, with heightened security concerns in the UK-France corridor.

  • Suez Canal and Strait of Gibraltar: Essential trade routes where disruptions could have global repercussions.

The FMC warned that should foreign governments or shipping companies be found responsible for conditions that hinder U.S. trade, it has the authority to implement countermeasures. One such option includes restricting port access for vessels registered under the offending countries.

Geopolitical Risks and Supply Chain Concerns

The Boston Consulting Group (BCG) previously raised alarms about geopolitical risks affecting key trade arteries, including the Suez Canal, the Malacca Strait, and the Panama Canal. Additionally, the Strait of Hormuz was highlighted as another high-risk area.

“These geopolitical risks could escalate to a point where moving goods to certain destinations becomes physically impossible,” BCG Partner and Director Michael McAdoo noted in a February 2024 report. “In the short term, they will extend lead times for goods. Over the long term, companies may shift toward shorter supply chains due to increased risk and capital costs associated with maritime transport.”

Call for Public Comments

The FMC is soliciting input from government bodies, shipping companies, vessel owners, and other stakeholders. Comments are due by May 13, 2025, and should address:

  • The causes, nature, and impacts (financial and environmental) of the choke point constraints.

  • The role of foreign government laws, policies, or actions in contributing to shipping bottlenecks.

  • The extent to which foreign-flag vessel operators are responsible for transit issues.

  • Projections of continued constraints for the remainder of 2025.

  • Recommended short-term and long-term strategies for alleviating congestion.

  • Potential barriers to implementing solutions and ways to overcome them.

The FMC's investigation underscores growing concerns over supply chain vulnerabilities and the need for decisive regulatory action to maintain global trade stability.

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