Comments due for Maersk Line request to control USSM’s MSP slots
The U.S. Maritime Administration is accepting comments from the shipping industry regarding Maersk Line Ltd.’s request to control 15 vessels enrolled in the nation’s Maritime Security Program, currently operated by U.S. Ship Management.
Maersk Line Ltd., U.S.-flag vessel subsidiary of A.P. Moller/Maersk Sealand, made the request for the transfer with MarAd in November 2002. The company claimed that under its 1999 MarAd-approved time charters that USSM agreed to transfer direct operations of the vessels to Maersk should Maersk Line Ltd. elect to become the MSP contractor.
MarAd gave tentative approval to the transfer. “Maersk qualifies as an eligible transferee of the MSP agreements from USSM,” the agency said in the spring.
The change in contractors will increase Maersk Line Ltd.’s MSP fleet from four to 19 ships. Maersk Line Ltd. said it would compensate U.S. Ship Management for the “current arrangement.”
MSP was created under the 1996 Maritime Security Act and is managed by MarAd. The program provides the federal government with immediate access to 47 military-useful commercial container and roll-on/roll-off vessels during times of war or national emergency. To help offset the higher vessel operations costs, the federal government pays the MSP vessel operators $2.1 million per ship annually.
USSM officials don’t plan to give up without a fight and chastised MarAd for playing into Maersk Line Ltd.’s attempt to “hijack” MSP.
Written comments may be sent to MarAd under Docket No. MarAd-2003-16248 via Internet at http://dmses.dot.gov/submit by Oct. 24.