by acetariffFMC Testify before U.S. Senate Committee About Panama Canal
Federal Maritime Commission Chairman Louis E. Sola and Commissioner Daniel B. Maffei testified at a hearing today by the U.S. Senate Committee on Commerce, Science, and Transportation that explored the operation, control, and cost to use the Panama Canal.
Here are key takeaways:
Statement from Chairman Louis E. Sola:
- Vital to U.S. Trade: The Panama Canal handles 40% of U.S. container traffic ($270B annually).
- Drought Challenges: 2024 water shortages reduced transits; by 2050, capacity could drop 50% without improvements.
- Foreign Influence & Corruption: Chinese investments and Panama’s corruption issues threaten fair competition and security.
- U.S. Response: Support American businesses in Panama, protect Panama Canal Authority (PCA) independence, and expand FMC oversight to ensure fair practices.
Statement from Commissioner Daniel B. Maffei:
- Operational Risks: The Canal depends on freshwater, and droughts have repeatedly disrupted trade.
- Economic Impact: 2023-24 transit reductions raised shipping costs, worsened by Suez Canal disruptions.
- FMC Monitoring: U.S. regulators met with Panamanian officials; concerns remain over slot allocation pricing during crises.
- Future Actions: FMC will continue oversight and is prepared to intervene if U.S. trade is harmed.
Overall Summary:
- The Panama Canal is crucial to U.S. trade but faces climate, corruption, and foreign influence challenges. The U.S. must take proactive steps to ensure fair competition, maintain PCA independence, and protect America’s economic interests.
Video Recording:
- The full hearing, titled “Fees and Foreign Influence: Examining the Panama Canal and Its Impact on U.S. Trade and National Security,” is accessible on the Committee’s website.
Disclaimer:
To view the original article, please click here. The information provided on this platform is for general informational purposes only and is not intended to be legal advice.
by acetariffFMC’s Maximum Penalty Fees Adjusted
Effective January 15, 2025, the Federal Maritime Commission will increase the maximum penalties for statutory violations in compliance with the Federal Civil Penalties Inflation Adjustment Act of 2015. These increases are based on the rate of inflation.
Here are key takeaways:
Increased Penalties for Shipping Act Violations:
- Knowing and willful violations: Maximum penalty increases to $74,943 (up from $73,045).
- Non-knowing and willful violations: Maximum penalty increases to $14,988 (up from $14,608).
- Continuing violations: Each day constitutes a separate violation under the statute.
Foreign Carrier Fees:
- Under the Foreign Shipping Practices Act: Maximum per voyage fee increases to $2,626,135 (up from $2,559,636).
- Under the Merchant Marine Act of 1920: Maximum per voyage fee increases to $2,364,503 (up from $2,304,629).
Additional Penalty Adjustments:
- The Commission is also increasing fees for seven other penalties.
- The complete list of updated penalties is available in the Federal Register.
Disclaimer:
To view the original article, please click here. The information provided on this platform is for general informational purposes only and is not intended to be legal advice.