CROWLEY, AMERICAN AUTOMAR SEEK TRANSFER OF MSP SUBSIDIES

CROWLEY, AMERICAN AUTOMAR SEEK TRANSFER OF MSP SUBSIDIES

   Crowley American Transport Inc. has left the U.S.-flag subsidy program,
the Maritime Security Program, and is seeking Maritime Administration
approval to transfer the subsidy agreements over to American Automar Inc.
   Crowley has had three ships enrolled in the subsidy program since
December 1996. The vessels operated in the U.S./South American trade until
early 1998, when they were chartered out to Lykes Bros. for use in the
U.S./Europe trade.
   The vessels are now under charter to the Military Sealift Command.
   American Automar wants Crowley’s MSP operating agreements transferred to
three Pure Car/Truck Carriers. Each ship has about 525,000 square feet of
deck area, which provide "great military utility," said American Automar’s
attorney Roy Bowman.
   Pending MarAd approval, American Automar will operate the ships in the
U.S./Europe trade, starting Aug. 20.
   Carriers enrolled in the Maritime Security Program — formerly the
Operating Differential Subsidy — receive $2.1 million per vessel, per year.