MARAD asks to Comment on MSP Transfer
by The Journal of Commerce
3 October 2003 (Washington) – The Maritime Administration is inviting comments from the industry about the bitter dispute between Maersk Line Ltd. and U.S. Ship Management (USSM) over control of 15 contracts in the Maritime Security Program.
Maersk Line asked Marad on Sept. 18 for approval to transfer the operating agreements for the former Sea-Land Services vessels. In November 2002, the company asked Marad for a ruling on its eligibility to operate the ships directly.
On April 29, Robert B. Ostrom, Marad's chief counsel, ruled in Maersk Line's favor. USSM has argued strongly against the transfer, and challenged Ostrom's ruling in U.S. District Court.
The 15 MSP ships became part of the Maersk fleet when Sea-Land merged with Maersk in 1998. The operating agreements were transferred to USSM, a U.S. citizen-owned company, to satisfy the MSP citizenship requirements.
Comments on the process are due by Oct. 24, but Marad emphasized it has made no decision on the transfer, especially since USSM itself has not requested that the contracts be transferred to Maersk Lines.
Marad said that it will not approve the transfers until it is satisfied the ships will be available for MSP service.
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