MarAd OKs Israel's Use Of Foreign Flag-Ships For U.S. Grain Shipments

The Maritime Administration (MarAd) has given Israel permission to use foreign-flag ships to carry American grain from U.S. Great Lakes ports to U.S.-flag ships anchored in the Gulf of St. Lawrence.

The cargoes will be transferred to the U.S.-flag vessels for shipment to Israel. The permission applies to grain purchased by Israel under a cash transfer program administered by the U.S. Agency for International Development (AID). In a side letter to its cash transfer agreement, Israel has agreed to ship 50 percent of American grain purchases on U.S.- flag vessels. Mar Ad's approval was given for FY '94 only. It is conditioned on limiting use of foreignflag vessels on the movement of cargoes from Great Lakes ports to Gulf of St. Lawrence transshipment points. Israel plans to ship 800,000 metric tons (MT) of U.S. grain on U.S.-flag vessels during FY '94. It is reportedly contemplating shipping 180,000 to 240,000 MT through Great Lakes ports under the transshipment arrangement.

MarAd's action permits the U.S. Great Lakes ports to handle the cargoes, even though U.S.-flag vessels are not directly available. It also makes it possible for U.S.-flag ships to handle the cargoes, which cannot transit the Seaway system to carry the cargoes from North America to Israel.

U.N. Extends Claim Period American President Lines (APL) has advised MarAd of the potential to claim compensation from the U.N. Compensation Commission for losses sustained from the Iraqi invasion of Kuwait — such as the payment of higher insurance premiums during Operations Desert Shield/Storm. The cutoff date for submitting claims was April 1,1994, but the U.N. has reportedly granted a three-month extension. For more information, contact the Assistant Legal Adviser for International Claims and Investment Disputes at (202) 653-2412.