FR 2024-31600

The document presented is a notice from the Maritime Administration (MARAD) of the U.S. Department of Transportation. It outlines a proposal regarding the eligibility determination for a foreign-built vessel, named Skydancer, to receive a coastwise endorsement. This endorsement would permit the vessel to carry no more than twelve passengers for hire. The intended use of the vessel is for sailing charters along the California coast, particularly around Marina Del Rey.

Summary

The notice calls for public commentary on whether granting such an endorsement to a foreign-built vessel might affect U.S. vessel builders or businesses utilizing U.S.-flagged ships. The concern here is primarily about the potential economic impact on domestic industry players. The document also provides instructions for how interested parties can submit their comments, either through an online portal or by mail, and emphasizes the need for transparency, as all comments will be publicly available unless marked and submitted as confidential commercial information.

Issues and Concerns

Several significant issues surface upon reviewing the notice:

1. Contextual Lack: The document does not clarify whether similar foreign-built vessels have been given coastwise endorsement in the past. This lack of historical context might leave stakeholders unsure about precedent and the typical outcomes of such determinations.

2. Confidentiality Concerns: While the document outlines a process for submitting confidential information, it simultaneously states that all comments will be publicly accessible. This duality might engender hesitance among commenters, leading to concerns about protecting personal and sensitive business information.

3. Economic Impact: The document notes that MARAD could reject the endorsement if it adversely affects U.S. vessel builders or users of U.S.-flag vessels. However, it does not elaborate on the specific conditions or reasons that might lead to this adverse impact, leaving room for speculation and unease among stakeholders.

4. Complex Submission Process: The instructions for submitting comments seem verbose and complex, potentially discouraging engagement from individuals not adept at navigating bureaucratic procedures. This might inadvertently limit public participation.

5. Technical Jargon: The document references various legislative and regulatory codes without offering summaries or explanations. For readers unfamiliar with these references, understanding the full scope and criteria of the eligibility determination may be challenging.

Impact on the Public and Stakeholders

Public Impact: Broadly, this document may carry implications for coastal communities and tourism. Encouraging or discouraging foreign-built vessels in U.S. waters can affect local businesses and the economic landscape of coastal areas reliant on tourism.

Impact on Vessel Builders and Operators: U.S. vessel builders and operators who utilize American-flagged vessels stand at the forefront of impacted parties. If coastwise endorsements for foreign-built vessels are granted more liberally, it might introduce increased competition, potentially chipping away at their market share and profitability. Conversely, if MARAD were to restrict such endorsements, U.S. builders could see strengthened demand.

In summary, while the document serves as an invitation for public discourse on a measure affecting foreign-built vessels' operations in the U.S., it underscores the critical balance between facilitating commerce and protecting domestic industry. The substantial concerns, especially regarding confidentiality and the economic implications for U.S. businesses, highlight the need for careful consideration and clear communication to all stakeholders involved.