MARAD Announces First Ships Enrolled in the Tanker Security Program
The U.S. Department of Transportation’s Maritime Administration (MARAD) announced on Tuesday that nine ships have been enrolled in the Tanker Security Program (TSP), a newly created public-private partnership program that makes U.S.-flag commercial product tankers available to support U.S. armed forces and national economic security.
“Today we are announcing the first ships to join the Tanker Security Program, which will help strengthen both our supply chains and our national security by delivering fuel to our armed forces around the world while creating hundreds of good jobs for American mariners,” said U.S. Transportation Secretary Pete Buttigieg.
“The TSP accomplishes two key maritime sealift objectives: it grows our U.S.-flagged fleet and it significantly expands our ability to deliver vital fuel supplies to support military missions across the globe,” said Maritime Administrator Ann Phillips. “Implementation of the TSP is a significant milestone for MARAD and the U.S. maritime industry.”
The companies selected for enrollment are Overseas Shipholding Group, Inc. (OSG); Crowley-Stena Marine Solutions, LLC.; and Seabulk Tankers, Inc.; each entering three tanker vessels into the program.
The OSG vessels approved for the program are Overseas Santorini, Overseas Mykonos and Overseas Sun Coast. A joint venture between Crowley and Stena Bulk will provide Stena Immaculate, Stena Imperative and Stena Impeccable, and Seabulk has partnered with TORM to provide the Torm Thunder, Torm Thor and Torm Timothy.
All of the companies have signed operating agreements. Of the enrolled vessels, four are under U.S. flag and are now operating in the program, and five are working with the assistance of the U.S. Coast Guard to expedite reflagging to U.S. registry to begin operating under TSP agreements. Each tank vessel enrolled will receive a maximum $6 million per year payment, prorated on a monthly basis for qualified service as participants in the program. The vessels will operate in U.S. foreign commerce and be available for use by the United States during times of war or national emergency.
The program is authorized for up to 10 tankers, and MARAD said it is seeking to fill the remaining operating agreement with a qualified vessel. To qualify for the program, proposed vessels have to qualify as Medium Range product tankers between 30,000-60,000 deadweight tons with fuel carrying capacity of 230,000 barrels or more, be less than 10 years of age, and available to commit to an emergency preparedness agreement for the duration of the program’s authorization.
