HMM Designated as Controlled Carrier by Federal Maritime Commission

The Federal Maritime Commission (FMC), the U.S. agency responsible for ensuring a reliable and competitive international ocean transportation system, has announced the addition of HMM to its Controlled Carrier List due its connection to the Government of the Republic of Korea. As a result, HMM will now face increased regulatory scrutiny from the FMC.

The Controlled Carrier List is a registry of ocean common carriers that have operations in U.S.-foreign trades and are owned or controlled by foreign governments. The government’s control or ownership of an ocean common carrier is determined if the government has a majority interest in the carrier or if it has the power to appoint or reject the appointment of a majority of the directors, the chief operating officer, or the chief executive officer of the carrier.

The FMC’s reinforced oversight is designed to prevent these controlled carriers from utilizing their government-backed positions to the disadvantage of competitors. This is ensured by maintaining their rates and charges at a level that’s deemed “just and reasonable.”

Earlier this year, the FMC listed Hede (HONGKONG) International Shipping Limited, an affiliate of the government of the People’s Republic of China, as a controlled carrier. This marked the first update to the controlled carrier list since April 30, 2019.

The list was also revised to remove COSCO Shipping Lines (Europe) GmbH, reflecting the company’s termination of operations in U.S. trades and its tariff withdrawal.

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