Maritime Administration News

Proposal Would Allow Foreign Vessels To Carry Preference Cargoes From Great Lakes Great Lakes ports will be able to compete for government-generated agricultural community cargoes under a trial program being proposed by the Maritime Administration (MarAd).

U.S. cargo preference laws require the use of U.S.-flag vessels for a portion of cargoes generated by the government, but no U.S.-flag ships currently provide service from the Great Lakes to foreign destinations. For a one-season trial period to coincide with the current Great Lakes shipping season, MarAd proposes allowing agricultural commodity cargoes subject to preference requirements to be carried by either U.S. or foreign-flagged ships from Great Lakes ports along the St. Lawrence Seaway. The cargoes would then be transferred to U.S.- flag ships for the ocean portion of the shipment. The proposed rule would not establish a preference or set aside for the Great Lakes, and availability of U.S.-flag service would continue to be determined on a national basis. Determination of fair and reasonable rates for U.S.- flag vessels would include through bills of lading for the transportation service. For more information on the proposed rule, contact: John Graykowski, Deputy Maritime Administrator for Inland Waterways and Great Lakes, Room 7206, 400 7th Street SW, Washington, D.C., tel: (202) 366-1718.

New Toil-Free Importer/ Exporter Help Line MarAd has a new toll-free help line number to assist exporters and importers with information on domestic or international cargo shipments, including cargo preference requirements.

Assistance is available to anyone dealing with the waterborne shipment of goods, including shippers and ocean carriers. The number is 1-800-9US-FLAG.

MarAd: Golden Monarch Ineligible For U.S. Cargo Preference Trade MarAd has issued a final opinion and order in conjunction with an application filed by Aquarius Marine Co. for a ruling regarding the eligibility of the tankerGo/cfen Monarch to carry preference cargoes if converted in a Korean shipyard to a dry bulk carrier. The tanker was constructed with the aid of a construction- differential subsidy and delivered in 1975 to Aeron Marine Shipping Co., which bareboat chartered the vessel to Aquarius. It was reconstructed in 1981, also with the aid of subsidy. According to Aquarius, the vessel arrived in a South Korean shipyard Feb. 1, the date of its request to MarAd. In its opinion, the agency found that the proposed conversion constitutes a rebuilding within the meaning of the Cargo Preference Act of 1954, and that the vessel's rebuilding in a foreign shipyard triggers a threeyear waiting period for cargo preference eligibility.

MarAd Approves Vessel Sales MarAd has approved three applications filed under section 9 of the Merchant Marine Act of 1936, as amended. Atlantic Pacific Marine Corp. of Houston, Texas, received approval to sell the barges Nicor Drilling Co. No. 202 and APMC Rig 12. The purchaser of barge No. 202 is Jupiter Drilling Corp. SA, a Panamanian corporation. The barge was built in 1981 in New Iberia, La. The purchaser of APMC Rig 12, built in 1982 in Orange, Texas, is Mercury Drilling Corp. SA, also of Panama. Both barges will be transferred to Panamanian or Venezuelan registry.

Neptune International received approval to sell the tanker Falcon Countess to Neter Navigation SA, a Panamanian corporation, for resale to M/S Lalchand Jain & Sons, an Indian corporation, for scrapping in India. The tanker was built in 1972 in Pascagoula, Miss.

Penn Barge Seeks Tugs & Barge Loan Guarantee MarAd has received an application from Penn Barge, Inc. of Stamford, Conn., for a Title XI loan guarantee to help finance the construction of two integrated double-hull tank barges and tugs that will meet OPA '90 requirements. The two 122,000-barrel, double-hull barges would be built by Alabama Shipyard, Inc., and the tugs would be built by Halter Marine, Inc., a Trinity Group yard.

The loan guarantee is for $26.25 million on a total cost of $35 million, with a term of 20 years. The scheduled delivery dates on the barges are Jan. 21 and June 21, 1995; for the tugs, the dates are Feb. 24 and April 24, 1995.

Kinsman Lines Applies To Sell Bulk Cargo Ship MarAd has received an application from Kinsman Lines, Inc. of Cleveland, Ohio for permission to sell the bulk cargo vessel Henry Steinbrenner for scrapping in Canada. The proposed purchaser is International Marine Salvage, Inc., Port Colborne, Canada. The 7,051- gt vessel was built in 1925 in River Rouge, Mich.

MarAd Updates Brochure On U.S.-Flag Shippers MarAd has updated its brochure, Vessel Service Guide — Support American Ship U.S.-Flag. The 11- page brochure, previously titledSAip Your Cargo on U. S. -Flag Ships, lists U.S.-flag liner companies serving ocean trade, the areas they serve and the types of service provided. Copies are available from the office of Market Promotion, Room 7209, 400 Seventh St. SW, Washington, D.C. 20590. Tel: (202) 366-5508. MarAd Extends Subsidies For Stella Lykes MarAd and the Maritime Subsidy Board have approved a request from Lykes Bros. Steamship Lines to extend the subsidizable life of the Stella Ly&esbeyond its 25-year statutory life for approximately 2.5 years until November 25, 1996.

To approve the application, the board required a reduction in the previously extended subsidizable lives of seven Lykes vessels, and applied the reduced amounts to the extension of the Stella Lykes.

Therefore, the approval is budget neutral.

The board determined that pursuant to section 605 (b) of the Merchant Marine Act, it is in the public interest to grant financial aid for tht vessel beyond its 25-year life or until otherwise withdrawn from the contract, whichever is earlier.

MarAd Receives Application To Refinance Title XI Debt