The Federal Maritime Commission (FMC or Commission) has granted, with conditions, an exemption from the publication requirements of 46 U.S.C. § 40703 to Chinese-Polish Joint Stock Shipping Company (“Chipolbrok”), a controlled carrier of the People’s Republic of China. The Commission has placed two conditions on Chipolbrok: first, requiring that Chipolbrok file a statement of justification under 46 U.S.C. § 40704(a) when it looks to lower its rates; and secondly, limiting this exemption to three years, after which Chipolbrok will be required to resubmit a petition for the exemption if it wishes to renew it.
In placing two conditions on Chipolbrok, the Commission notes that the Controlled Carriers Act is concerned with ensuring that controlled carriers do not charge rates that are below a level that is just and reasonable. Additionally, because exemptions under 46 U.S.C. § 40703 are not intended to be permanent, the Commission has placed a three-year time limit on Chipolbrok’s exemption.
Chipolbrok filed its petition for this exemption on April 28, 2025. The petition was published in the Federal Register on May 9, 2025, with a request for public comment. In response, the Commission received a total of eleven comments. Seven comments supported Chipolbrok’s petition, whereas four comments opposed it. The public comments in support of the exemption were submitted by the Embassy of the Republic of Poland in China, Celtic Marine and Logistics, C. Steinweg (USA) Inc., and Baltic America Express Line LLC.
The Commission considered each submitted comment and concluded that granting Chipolbrok’s petition will neither substantially reduce competition nor be detrimental to commerce.