FMC Updates Rules: What it Means for Shipping and Your Business

You might care about this because the Federal Maritime Commission or FMC is proposing changes to how it creates new rules. The FMC is a government agency that oversees international ocean shipping for the benefit of US businesses and consumers. These proposed changes aim to make the rulemaking process clearer and more efficient. The FMC wants to combine different types of rulemaking requirements into one section. It also plans to remove rules that are no longer needed, like strict limits on certain types of communications. The goal is to better connect the FMC's rule-making with a central government review process, as guided by Executive Order 14215. This update will also make it easier for the FMC to use electronic tools for its rulemaking, a process called eRulemaking. Overall, these proposed updates simplify how the FMC develops and implements its regulations. What is particularly interesting about these changes is the FMC's move to loosen rules around "ex parte communications" in informal rulemaking. Ex parte communication simply means a one-sided talk or written message with an agency staff member about a pending rule, without the other interested parties knowing. Historically, the FMC was very strict about these. However, court decisions over the years, especially one known as Sierra Club v. Costle, have shown that these types of communications are generally allowed in informal rulemaking settings. The Administrative Conference of the United States, which advises agencies on best practices, also supports this view. They believe these one-sided talks can actually help agencies gather important information, create better rule proposals, and build agreement among different groups. The FMC is now aligning its practices with this updated understanding, though it still wants to make sure all such communications are disclosed to keep the process fair. Several groups would be most interested in this legal document. Businesses involved in international shipping, such as exporters, importers, and ocean carriers, should pay close attention. Any company or individual that interacts with the Federal Maritime Commission or is affected by its regulations will find these procedural changes relevant. Lawyers and legal professionals specializing in administrative law or maritime law will need to understand these updated procedures. Public interest groups and consumer advocates who monitor government regulations in the shipping industry should also review this document. Lastly, other federal agencies might be interested in how the FMC is updating its procedures, especially regarding ex parte communications, as it could set a precedent or provide insight for their own practices.