By the end of FY 1995, authorizing committees in both the House and Senate passed legislative initiatives similar to that proposed by the Administration. The House and Senate versions allowed for payments to vessels enrolled in the MSP of $2.3 million per vessel in FY 1996 and $2.1 million for the remaining nine years. Contracts awarded during the first year would be renewable, subject to availability of funds in fiscal years 1997 through 2005. Opponents believed that the 10-year program's $1 billion price tag was too steep and that US cabotage laws (the Jones Act) and government cargo preferences adequately support sufficient sustainment capacity in the US-flagged fleet. Subsidy opponents also noted that US shipping that does reflag will remain under effective US control and will continue to be available to meet defense needs. On September 24, 1996, the United States Senate joined the House of Representatives in passing H.R. 1350. President Clinton signed Public Law 104-239, the Maritime Security Act, on October 8, 1996.
Under the Maritime Security Program (MSP), the Government contracts with the owners of U.S.-flag commercial ships for service when needed for national emergencies or war. These U.S.-flag merchant ships are owned by U.S. citizens and crewed by American seafarers. This approach avoids the need to spend billions of dollars to acquire additional cargo ships dedicated solely to carrying military cargoes, and the millions of additional dollars required to maintain more standby vessels. The Maritime Security Program provides limited operating assistance to keep 47 US commercial militarily-useful ships sailing under US flags. The Department of Transportation funds this 10-year program which replaces the $4 million a year per ship Operating Differential Subsidy and provides annual payments of $2.5 million per vessel for 3 years and $2.0 million thereafter. Participating carriers are required to enroll in an Emergency Preparedness Program established to provide intermodal sealift support in time of war or national emergency. The commercial transportation resources to be provided would include shipping capacity, intermodal equipment, terminal facilities, and management services. The ship capacity and associated intermodal capabilities of the MSP vessels are enrolled in the new sealift Emergency Preparedness Program, the Voluntary Intermodal Sealift Agreement (VISA), providing efficient and effective maritime capability to support US national security objectives. All US flag ships — commercial and military (prepositioning, RRF and FSS) — are manned by US citizen merchant mariners. Today, there are about 26,000 US merchant mariners. During a contingency, USTRANSCOM will need about 4,000 of them. By the turn of the century the industry is estimated to be down to about 13,000, of those USTRANSCOM will still need 4,000. The Maritime Security Program (MSP) prevented a projected shortfall because of the MSP's reemployment rights and support of a baseline of US flag merchant vessels that provide civilian employment for the mariners USTRANSCOM will need during crises.MSP Participants |
|
American Ship Management, LLC [APL - link] | 9 vessels |
Central Gulf Lines | 3 vessels |
Waterman Steamship | 4 vessels |
Crowley Maritime | 3 vessels |
First American Bulk Carriers | 2 vessels |
Farrell Lines | 3 vessels |
FOBC I,-II,-III | 3 vessels |
Maersk Line | 4 vessels |
OSG Car Carriers | 1 vessels |
Sea-Land Service [link] | 15 vessels |
Total | 47 vessels |
21 Large
Containerships > 3,000 TEU 15 Medium Containerships < 3,000 TEU 4 LASH 3 Combo Cont-Ro/Ro 4 Car/Truck Carriers 110,000
Total TEU's or 10 Million Square Feet |
MSP START DATES
| ||||
MSP Contract No. |
Vessel Name | Company Name | Actual Start-up Date |
Anticipated Start Date |
MA/MSP-1 |
APL KOREA |
ASM |
24-Dec-97 |
|
MA/MSP-2 |
APL PHILIPPINES |
ASM |
07-Jan-98 |
|
MA/MSP-3 |
APL SINGAPORE |
ASM |
11-Dec-97 |
|
MA/MSP-4 |
APL THAILAND |
ASM |
31-Dec-97 |
|
MA/MSP-5 |
ASM |
13-Nov-97 |
||
MA/MSP-6 |
ASM |
13-Nov-97 |
||
MA/MSP-7 |
ASM |
13-Nov-97 |
||
MA/MSP-8 |
ASM |
13-Nov-97 |
||
MA/MSP-9 |
ASM |
13-Nov-97 |
||
MA/MSP-10 |
GREEN BAY |
CENTRAL GULF |
20-Dec-96 |
|
MA/MSP-11 |
GREEN POINT |
CENTRAL GULF |
15-Apr-98 | |
MA/MSP-12 |
GREEN LAKE |
CENTRAL GULF |
20-Dec-96 |
|
MA/MSP-13 |
CROWLEY |
20-Dec-96 |
||
MA/MSP-14 |
CROWLEY |
20-Dec-96 |
||
MA/MSP-15 |
CROWLEY |
20-Dec-96 |
||
MA/MSP-16 |
TILLIE LYKES |
FABC |
01-Jan-99 |
|
MA/MSP-17 |
TYSON LYKES |
FABC |
01-Jan-99 |
|
MA/MSP-18 |
ENDEAVOR (ex IBN KHALDOUN) |
FARRELL |
17-Nov-97 |
|
MA/MSP-19 |
ENDURANCE (ex IBN JUBAYR) |
FARRELL |
08-Dec-97 |
|
MA/MSP-20 |
ENTERPRISE (ex IBN ZUHR) |
FARRELL |
04-Nov-97 |
|
MA/MSP-21 |
LYKES NAVIGATOR (ex-ALMERIA LYKES) |
FOBC |
22-Jul-98 |
|
MA/MSP-22 |
LYKES DISCOVERER (ex-MARGARET LYKES) |
FOBC |
22-Jul-98 | |
MA/MSP-23 |
LYKES LIBERATOR (ex-STELLA LYKES) |
FOBC |
22-Jul-98 | |
MA/MSP-24 |
MAERSK CALIFORNIA |
MAERSK |
19-Apr-97 |
|
MA/MSP-25 |
MAERSK COLORADO |
MAERSK |
05-May-97 |
|
MA/MSP-26 |
MAERSK TENNESSEE |
MAERSK |
12-Mar-97 |
|
MA/MSP-27 |
MAERSK TEXAS |
MAERSK |
25-Feb-97 |
|
MA/MSP-28 |
OVERSEAS JOYCE |
OSG |
20-Dec-96 |
|
MA/MSP-29 |
GALVESTON BAY |
SEA-LAND |
20-Dec-96 |
|
MA/MSP-30 |
NEDLLOYD HOLLAND |
SEA-LAND |
20-Dec-96 |
|
MA/MSP-31 |
NEWARK BAY |
SEA-LAND |
20-Dec-96 |
|
MA/MSP-32 |
OOCL INNOVATION |
SEA-LAND |
20-Dec-96 |
|
MA/MSP-33 |
OOCL INSPIRATION |
SEA-LAND |
20-Dec-96 |
|
MA/MSP-34 |
SEA-LAND ATLANTIC |
SEA-LAND |
20-Dec-96 |
|
MA/MSP-35 |
SEA-LAND DEFENDER |
SEA-LAND |
20-Dec-96 |
|
MA/MSP-36 |
SEA-LAND ENDURANCE |
SEA-LAND |
20-Dec-96 |
|
MA/MSP-37 |
SEA-LAND EXPLORER |
SEA-LAND |
20-Dec-96 |
|
MA/MSP-38 |
SEA-LAND INNOVATOR |
SEA-LAND |
20-Dec-96 |
|
MA/MSP-39 |
SEA-LAND INTEGRITY |
SEA-LAND |
20-Dec-96 |
|
MA/MSP-40 |
SEA-LAND LIBERATOR |
SEA-LAND |
20-Dec-96 |
|
MA/MSP-41 |
SEA-LAND PATRIOT |
SEA-LAND |
20-Dec-96 |
|
MA/MSP-42 |
SEA-LAND PERFORMANCE |
SEA-LAND |
20-Dec-96 |
|
MA/MSP-43 |
SEA-LAND QUALITY |
SEA-LAND |
20-Dec-96 |
|
MA/MSP-44 |
GREEN ISLAND |
WATERMAN |
23-Feb-97 |
|
MA/MSP-45 |
ROBERT E. LEE |
WATERMAN |
29-Mar-97 |
|
MA/MSP-46 |
SAM HOUSTON |
WATERMAN |
26-Apr-97 |
|
MA/MSP-47 |
STONEWALL JACKSON |
WATERMAN |
08-Mar-97 |