CENTRAL GULF, WATERMAN OPPOSE CROWLEY’S MSP TRANSFER

CENTRAL GULF, WATERMAN OPPOSE CROWLEY’S MSP TRANSFER

   Central Gulf Lines Inc. and Waterman Steamship Corp. have asked the
Maritime Administration to deny the proposed transfer of Maritime Security
Program subsidies from Crowley American Transport to American Automar.
   Crowley has sold the three ships it had enrolled in the subsidy program,
two to Automar’s subsidiary, Automar International Car Carrier Inc., and
the third to Remington Shipping Inc. 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.
   American Automar wants Crowley’s MSP operating agreements transferred to
three Pure Car/Truck Carriers.
   American Automar will operate the ships in the U.S./Europe trade,
starting Aug. 20.
   Central Gulf and Waterman argue that Crowley had sold the ships to
companies that did not plan to operate the ships in the MSP. By attempting
to transfer the contract to a third party, Crowley is creating "a market in
federally awarded MSP contracts," the lines argued.
   Carriers enrolled in the Maritime Security Program — formerly the
Operating Differential Subsidy — receive $2.1 million per vessel, per year.