MARAD TAKES NO ACTION ON ISRAELI CARGO PREFERENCE WAIVER REQUESTS
The U.S. Maritime Administration said it would not take action on the Israeli Defense Ministry’s request for a waiver to the cargo preference rules to allow it to transport U.S.-sourced jet fuel on foreign-flag product tankers.
The 1954 Cargo Preference Act requires that at least 50 percent of non-agricultural government-sponsored cargoes to be transported on U.S.-flag vessels.
The Israeli Defense Ministry purchased the jet fuel from the U.S. Defense Security Cooperative Agency under the Foreign Military Sales Program. The Defense Security Cooperative Agency’s rules are even more explicit in that they require 100-percent U.S.-flag carrier transport of goods.
In its waiver request to MarAd, the Israeli Defense Ministry expressed concern that qualified U.S.-flag tonnage may not be available in 2004 because many tankers are retiring under the 1990 Oil Pollution Act. The Israeli Defense Ministry said its efforts to conclude a multiyear contract with a U.S.-flag carrier were hindered by this problem earlier this year.
MarAd sought public comments on the waiver request in mid-August. “The preponderance of comments urged us to delay taking any action because the requested finding would not be needed, if at all, until 2003,” MarAd said.