FMC settles with Canaveral port’s tug franchise on violations
The U.S. Federal Maritime Commission has accepted a settlement agreement and will discontinue proceedings against the Canaveral Port Authority in Florida for its previously restrictive tug franchising policy.
The FMC initiated the investigation last year after the port refused two consecutive tug-and-towing franchise applications from Tugz International. The port had granted exclusive tug and towing privileges to Seabulk International, a violation of section 10 of the 1984 Shipping Act, the FMC said.
The settlement agreement requires the port to pay a $750,000 civil penalty, eliminate its previous tug franchise system, and allow vessels calling at the port the right to select a port-approved tug company of their choice.
The Canaveral Port Authority said it would maintain a “minimally restrictive, objective” tug and towing system that’s “open to all applicants.”