FMC Shuts down Operations
The Federal Maritime Commission (FMC) announced on October 1, 2025 that it has suspended all operations due to the federal government shutdown caused by a lapse in appropriations. Unlike the enforcement push under the Ocean Shipping Reform Act of 2022 (OSRA 2022), this closure means the Bureau of Certification and Licensing (BCL) cannot accept OTI license applications (FMC-18), foreign NVOCC registrations (FMC-65), or tariff registrations (FMC-1), nor can it process surety bond riders or renewals. All filing deadlines in adjudicatory and investigatory proceedings are suspended under 46 C.F.R. § 502.101, and no complaints (or ombudsman services) are available until appropriations are restored (FMC Press Release, Oct. 1, 2025).
A Frozen Licensing Environment
The suspension leaves both U.S. and foreign OTIs awaiting license and registration approval are in limbo and cannot legally operate in U.S. trades until the funds are appropriated. License renewals, required under 46 C.F.R. part 515, are currently not being processed. While the statutory requirement to maintain financial responsibility remains even if filings are not currently being accepted. OTIs must continually ensure that their bonds remain valid, even during the FMC shutdown.
Bond Compliance and Legal Risk
OTI bonds (Form FMC-48) serve as a safeguard for shippers against non-performance. Generally, a bond cancellation notice triggers a license termination process. With the FMC closed, it cannot file, cancel or otherwise update any changes made to the bonds. However, OTIs are not relieved of the statutory obligation to continuously maintain financial responsibility. A lapse in bond coverage during the shutdown would still constitute a violation once the agency reopens, exposing intermediaries to retroactive license revocation or penalties. In practice, the burden is shifted to the OTIs and sureties to keep bonds active without the Commission’s normal oversight mechanisms.
Service Contracts and Agreements Tolled
The SERVCON database for carrier service contracts remains accessible, but filings will not be reviewed until staff return. Similarly, carrier and marine terminal operator agreements required under the Shipping Act are not being accepted. By regulation, the 45-day statutory clock for such agreements is tolled during the shutdown. Parties cannot lawfully implement new cooperative agreements until the Commission is reopened and filings resume.
Enforcement on Hold
The Bureau of Enforcement, Investigations, and Compliance (BEIC) is also shuttered along with the rest of the Commission. Audits, investigations, and enforcement actions are suspended. While the Shipping Act of 1984 remains in full force, there is no forum to pursue complaints or seek relief for the aggrieved party. As the FMC itself acknowledged in past shutdowns, this “effectively suspends enforcement of the Shipping Act until further notice.”
Implications for OTIs and Stakeholders
The impact falls hardest on OTIs and NVOCCs:
Applicants cannot enter the trade until their licenses are processed post-shutdown.
Active licensees must maintain bonds and tariffs without the ability to record updates.
Sureties must hold coverage in place despite not being able to file changes.
Shippers and carriers cannot file complaints or obtain ombudsman services.
Industry associations, including NCBFAA, have urged the FMC to preserve critical trade facilitation, but as an independent agency without essential security functions, the Commission remains almost entirely inactive until appropriations resume.
Conclusion
The October 2025 federal government shutdown has put a pause on FMC’s licensing, bonding, and enforcement. While the OTI statutory requirements remain in place, the industry is left without the Commission’s administrative functions or dispute-resolution channels. When appropriations are restored, OTIs should be prepared to file overdue renewals, bond riders, and updates immediately. Until then, intermediaries must tread carefully, and maintain compliance.
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