Hyundai Merchant Marine Classified as Controlled Carrier by Federal Maritime Commission

Date: July 5, 2024

The Federal Maritime Commission (FMC) has officially classified Hyundai Merchant Marine (HMM) as a controlled carrier of the Government of the Republic of Korea, adding it to the agency’s Controlled Carrier List.

Controlled carriers are defined as ocean common carriers that operate in U.S.-foreign trades and whose operating assets are directly or indirectly owned or controlled by a foreign government. Such carriers are subject to enhanced regulatory oversight by the FMC unless a specific treaty exists between the United States and the controlled carrier’s host nation.

Treaty Exemption

A Treaty of Friendship, Commerce, and Navigation was signed in 1957 between the United States and the Republic of Korea. This treaty entitles HMM to an exception under 46 U.S.C. 40706(1), exempting it from the requirements of Title 46, Chapter 407. Despite this exemption, HMM remains subject to the provisions of:

• 46 U.S.C. 40502(f)
• 46 U.S.C. 46106(b)(7)

Regulatory Oversight

The Controlled Carrier List is not a comprehensive list of all foreign-owned, foreign-controlled, or government-linked companies and assets. Instead, it includes companies that meet statutory requirements outlined in 46 U.S.C. Chapter 407. Regulations related to controlled carriers can be found under 46 C.F.R. 565.

Implications for HMM

Being classified as a controlled carrier means that HMM’s operations will be closely monitored by the FMC to ensure compliance with U.S. maritime laws and regulations. This classification underscores the importance of transparency and regulatory adherence for carriers operating under foreign government ownership or control in U.S. trades.

For more detailed information, please refer to the Federal Maritime Commission’s regulations and statutory provisions concerning controlled carriers.