FR 2025-06998

The document from the Federal Register details a notice from the Maritime Administration (MARAD) requesting public comments on the proposed use of a foreign-built, small passenger vessel, named M/V MOJO, in U.S. coastwise trade. This notice calls for inputs to determine if its use might adversely impact domestic shipbuilders or businesses that utilize U.S.-built vessels.

General Summary

The Maritime Administration, which operates under the Department of Transportation, is considering an application related to the employment of a foreign-built vessel in the U.S. coastwise trade, specifically carrying up to 12 passengers for hire. This process, regulated by MARAD, seeks to ensure that using foreign-built vessels does not impair U.S. businesses and shipbuilders who deal in American-built vessels. Stakeholders and the public are invited to submit their opinions and comments by May 23, 2025. Comments can be submitted online via the regulations.gov portal or by mail, and they will be publicly accessible unless explicitly marked as confidential.

Significant Issues and Concerns

One of the noteworthy issues is the lack of clarity in certain procedures and criteria within the document. Although stakeholders can submit comments regarding potential impacts on U.S. vessel builders and businesses, the document does not define what constitutes an "undue adverse effect." This absence of clear criteria may cause confusion and might result in inconsistencies in how adverse impacts are assessed.

Additionally, the process for submitting confidential comments might appear complex. Commenters are required to mark their submissions specifically and include a rationale for confidentiality, which could impede participation from individuals unfamiliar with these procedures. Furthermore, references to legal provisions, such as 46 U.S.C. 12121(b), are included without providing a breakdown or context, which might limit understanding for those not acquainted with these laws.

Public Impact

Broadly, the document provides a platform for public involvement in regulatory decisions that affect maritime trade and industry standards. By inviting comments, MARAD ensures that the opinions of various stakeholders and interested parties are considered before making decisions on coastwise trade. This encourages transparency and could lead to a balanced approach that considers the interests of different groups.

Impact on Specific Stakeholders

For U.S. vessel builders and businesses that rely on U.S.-built vessels, this notice could have significant implications. The concern is that allowing foreign-built vessels in the coastwise trade might undercut domestic businesses, potentially leading to economic challenges for these stakeholders. However, the request for public comments allows these parties to present their concerns and potentially influence the determination process.

Conversely, the use of foreign-built vessels could benefit certain operators by offering more competitive choices and potentially lowering costs, ultimately leading to diversified services for passengers. On the regulatory side, this notice strengthens the procedural integrity of maritime decisions by considering a broader set of inputs from domestic industries, foreign vessel operators, and the general public.

By systematically assessing public and industry input, MARAD aims to strike a fair balance between maintaining a robust domestic shipbuilding sector and allowing operational flexibility in the dynamic field of coastwise maritime trade.