FR 2024-28445

The document from the Federal Register outlines a call for public comments by the Maritime Administration (MARAD), part of the Department of Transportation. It concerns a request for a coastwise endorsement eligibility determination for a foreign-built vessel named INFINITY. This motor yacht intends to operate passenger charters along the east coast of Florida, specifically based in Miami. The request under review is whether this foreign-built yacht can receive permission to carry up to twelve passengers for hire within U.S. waters—a matter governed by specific U.S. laws and regulations.

General Summary

The Maritime Administration is considering whether the INFINITY, despite being foreign-built, should be allowed to engage in coastwise trade in the United States. Coastwise trade refers to the transportation of merchandise or passengers between U.S. ports. For foreign-built vessels, this requires a special endorsement since typical regulations favor U.S.-built vessels under similar circumstances. By inviting public comments, MARAD seeks to gauge the impact this decision might have on domestic shipbuilders and businesses utilizing U.S.-flagged vessels.

Significant Issues and Concerns

Several issues emerge from this document that deserve attention:

1. Lack of Specific Criteria: The document does not delineate specific regulations or criteria that determine eligibility for coastwise endorsements under the relevant regulations—46 CFR part 388. Without these details, it might be challenging for stakeholders to provide informed comments, especially those unfamiliar with maritime law.

2. Public Influence on Decision-Making: The document does not clarify how the gathered public comments will influence MARAD's final decision. This could lead to skepticism or uncertainty regarding the weight and impact of public participation.

3. Assessment of Adverse Effects: There’s a lack of detailed criteria or methods specified for assessing potential adverse effects on U.S. vessel builders or businesses relying on U.S.-flagged vessels. Stakeholders might not fully understand what constitutes an "unduly adverse effect," which could color the nature of the feedback provided.

Impact on the Public

Broadly, this document emphasizes public participation in regulatory decision-making—a cornerstone of democratic processes. By allowing public input, MARAD makes the decision process more transparent and inclusive, theoretically reflecting diverse perspectives and potential concerns from all parties affected by this decision.

Impact on Specific Stakeholders

U.S. Vessel Builders and Businesses: There is a potential negative impact on domestic shipbuilders and businesses operating U.S.-flag vessels. Allowing foreign-built vessels like the INFINITY to operate within the coastwise trade could introduce competition that alters market dynamics, potentially disadvantaging local builders and businesses that adhere to stricter, possibly more expensive, regulations.

Consumers: While domestic builders might face stiffer competition, consumers might benefit from increased choices in passenger charter options due to potential new entrants in the market. This can lead to competitive pricing, potentially offering more affordable or diverse options for charters.

Regulatory Bodies: Agencies like MARAD must balance economic interests with regulatory compliance, aimed at protecting local industries while accommodating international entities. This involves meticulous assessment and transparent communication, making public participation valuable though complex.

In conclusion, this document illustrates an effort to engage public opinions on maritime operational regulations, though it leaves some questions about process transparency and criteria specification unanswered. Stakeholders should be afforded clearer information on decision-making criteria and the specific impact of their comments to participate meaningfully.