Maritime Security Fleet
The Maritime Security Program (MSP) forms the third stage of cargo support for US war operations. Vessels pressed into the programme form a "third-resort" fleet made up of US-flagged commercial vessels, which are paid subsidies each year to participate. If called upon, these vessels would become dedicated cargo carriers for a US war effort. The "second resort" scheme run by the US Department of Transportation's Maritime Administration (Marad) consists of a fleet of "militarily useful ships" based in the US Ready Reserve Force (RRF). These vessels can be called up to support the rapid, massive movement of military supplies and troops for a military exercise or large-scale conflict.
The Maritime Security Program (MSP) maintains a U.S.-flag merchant fleet crewed by US mariners to serve both the commercial and national security needs of the United States. In accordance with the Maritime Security Act of 1996 (P.L. 104-239), the Department of Transportation's Maritime Administration (MARAD) entered into agreements with 10 shipping companies to participate in a program that would provide the Department of Defense (DOD) access to U.S.-registered commercial ships, their crews, and other related transportation assets in a time of national emergency. Maritime Security Program payments are paid to vessels operating in U.S. foreign commerce. Vessels include containerships, lighter-aboard ships (LASH) and Roll-on/Roll-off vessels (RO/RO).
The MSF program replaces the Operating Differential Subsidy (ODS) program, which reimbursed American shipowners for cost differentials associated with operating under U.S. versus foreign registry, including higher crew, insurance, maintenance, and repair costs. The MSF program, in contrast, provides a reduced fixed rate to compensate U.S.-flag operators principally for the higher cost of employing U.S. citizens aboard U.S.-flag ships.
As of January 23, 1997, 47 ships were enrolled in the program. Under the Maritime Security Program, 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.
US-flag fleet participants in cargo preference food aid shipments comprise two general categories of carriers: charter service and liner service. The cargo preference and Maritime Security Programs are intended to support both as part of the U.S.-flag fleet. These programs are administered by MARAD, while the food aid programs are administered by USAID and USDA.
Vessels in the privately owned US-flag fleet engaged in international commerce can be placed into two general categories: charter service and liner service. While most non-MSF carriers provide charter service, most MSF carriers provide liner service.
Most charter service vessels are operated by non-MSF carriers. Charter service means that vessels are hired to carry a cargo to specific ports at a specific time; these vessels do not provide regularly scheduled service on a fixed route but typically carry a shipload of cargo for only one or a few customers at a time. Charter service is primarily provided by bulk, breakbulk, and tug-barge vessels that can carry either bulk or bagged cargo.
Bulk vessels are designed to carry dry bulk commodities, such as rice or wheat, in large interior holds. The benefit of bulk shipments is the economies of scale that can be gained from shipping large amounts of a single commodity.
Break-bulk vessels are general cargo ships that are designed to carry nonuniform items packaged as single parcels or assembled together on pallet boards. Bagged commodities are stacked and secured within interior holds of the ship. Tugbarge vessels have a tugboat or towboat that propels a separate barge by pushing or towing it. Barges generally carry bulk or break-bulk cargo, although some also carry containerized cargo.
Most MSF vessels are liner service vessels. Liner service means that vessels have regularly scheduled sailings on fixed routes. These vessels typically carry small amounts of cargo for many customers at one time and will sail, even if not completely full.
Liner service is primarily provided by containerships that carry bagged cargo; they do not carry bulk cargo. Containerships are designed to carry cargo in standard-size, preloaded containers that are stacked next to and on top of each other on the ship. The benefit of containers is that they permit rapid loading and unloading and efficient transportation of cargo to and from the port area. Containers facilitate intermodal transportation because they can be loaded by the supplier and sealed, taken by truck or railcar to the port, then loaded onto the containership without the cargo being handled.
In the case of food aid, generally the suppliers do not load the containers but instead ship bagged commodities by rail or truck to the port of loading, where they are loaded into the containers.
Liner service is also provided by Lighter Aboard Ships (LASH), which are bargecarrying vessels that use barges like containers. They are also intermodal because the barges can use rivers and canals to pick up and drop off cargo at interior loading docks.
United States Ship Management (USSM), created in 1999 after the sale of Sea-Land to Maersk, remained the unchallenged US-owned bareboat charterer of 16 ships owned by Maersk. In 2003 Maersk Line began pressing MARAD to reassign the slots to them. USSM and Maersk Line started in three year battle in several federal courts and before various federal agencies, usually with MarAd siding with Maersk.
On 30 October 2003 American Roll-On Roll-Off Carriers (ARC) introduced its reflagged ship, FREEDOM, which will bring important additional sealift capacity to the Maritime Administration's Maritime Security Program (MSP). FREEDOM replaced the TANABATA in the MSP fleet. TANABATA remained in the US-flag fleet as a non-MSP participating ship under a new name, RESOLVE. RESOLVE continued to operate in the company's service between the U.S. and Northern Europe. FREEDOM also operated in the service between the U.S. and Northern Europe.
American Maritime Congress [AMC] US-flag carrier members have collective bargaining agreements with the Marine Engineers' Beneficial Association [MEBA], a member of the AFL-CIO that represents licensed officers working on the majority of ships in the American merchant marine fleet. As of mid-2003 a total of 40 of the 47 commercial US-flag vessels enrolled in the Maritime Security Program (MSP) were operated by AMC member companies. The Seafarers International Union (SIU), which represents thousands of merchant seamen employed on US vessels engaged in both domestic and international maritime trades.
Provisions of the National Defense Authorization Act for Fiscal Year 2004, the Maritime Security Act of 2003 (MSA 2003) authorizes the creation of a new Maritime Security Program that establishes a fleet of active, commercially viable, privately owned vessels to meet national defense and other security requirements to maintain a United States presence in international commercial shipping. In December 2003, President Bush signed the 10-year extension of the MSP.
To support the operation of up to 60 U.S.-flag vessels in the foreign commerce of the United States, the Maritime Security Act of 2003 authorizes $156 million annually for fiscal years 2006, 2007, and 2008; $174 million annually for fiscal years 2009, 2010, and 2011; and $186 million annually for fiscal years 2012, 2013, 2014, and 2015. Payments are subject to annual appropriations.
The U.S. Maritime Security Program (MSP) fleet continued its recent upgrade in December 2004 with two newly reflagged containerships for Waterman Steamship. The two Waterman ships are the P&O Nedlloyd Veracruz and the Buenos Aires. Both ships are equipped with cranes. Maersk's new additions are the Sealand Charger, Sealand Meteor, Maersk Alabama, Sealand Intrepid, Sealand Comet and Sealand Lightning. These modern containerships replaced six existing MSP vessels built in the 1980s, and managed by U.S. Ship Management, Inc. (USSM). All eight of the newly reflagged American-crewed ships are replacements for previous MSP vessels.
In mid-2004 a federal court cleared the way for Maersk to take direct control of the fifteen "Sea-Land" ships that were being managed by United States Ship Management (USSM). On 19 August 2004 Maersk took over operational control from USSM of three ships, the SEALAND PRIDE, SEALAND FLORIDA and SEALAND MOTIVATOR. The operational changeover occurred with the support of the unions representing the shipboard labor.
In late 2004 a federal judge in Charlotte, NC granted USSM a preliminary injunction against MARAD to halt the agency from transferring MSP slots and funding from USSM to Maersk of six ships owned by Maersk, but operated by USSM in the Maritime Security Program. The six ships in limbo are the 1,100-teu ALVA MAERSK and five 3,800-teu ships, the SEALAND INTREPID, SEALAND LIGHTNING, SEALAND CHARGER, SEALAND COMET and SEALAND METEOR. These vessels were built between 1995 and 1998.
In early 2005 Maersk and United States Ship Management remained locked in combat in the courts over control of a number of Maersk-owned vessels in the MSP fleet. USSM won the last legal round, a US federal judge enjoining the Maritime Administration from transferring subsidies from a number of USSM-operated ships to larger and more modern Maersk Line ships that the latter wished to flag in to the program and run itself.
In March 2006 USSM surrendered its years-long battle to retain slots in the MSP fleet. USSM's withdrawal cleared the way for Maersk Line to fully operate the 16 vessels it had time-chartered from USSM. Operate of the 16 ships was USSM's only enterprise.
MSP contracts for 2005-2016
On 14 January 2005 the US Maritime Administration issued an announcement concerning contract awards for the new US Maritime Security Program (MSP). The Maritime Administration officially notified companies of Maritime Security Program (MSP) contract awards as required by statute. MSP ships contribute to the operation of a commercial U.S.-flag, U.S. crewed fleet engaged in the international trade, thus ensuring the government's access to these critical assets during times of war and national emergency.
Under the expanded scheme, it was announced in January 2005 that 13 new vessels would join the country's Maritime Security Program operated by the US Maritime Administration. This increased the fleet from 47 to 60 vessels. Of 142 applicant vessels, MARAD chose the following ships: three tankers operated by Overseas Shipholding Group: Maersk Rapier, Maersk Regent and Maersk Richmond; four ro-ros operated by Fidelio: Takasago, Resolve, Otello and Aida. Two further ro-ros: Hercules Leader and Hoegh New York [not Splendid Ace, as initially reported], operated by Central Gulf Lines and Liberty Global Logistics respectively; two geared container vessels operated by Lykes Lines: Lykes Motivator and TMM Yucatan; and two heavy-lift vessels, Industrial Challenger and Industrial Chief, operated by Patriot Shipping.
APL Marine Services, Ltd.
APL China
APL Korea
APL Philippines
APL Singapore
APL Thailand
President Adams
President Jackson
President Polk
President Truman
Central Gulf Lines, Inc.
Green Cove
Green Point
Green Lake
Hercules Leader
American Auto Carriers, Inc.
Liberty
Fidelio Limited Partnership
Aida
Freedom
Otello
Patriot
Resolve
Takasago
Farrell Lines Inc.
Chesapeake Bay
Delaware Bay
Endeavor
Endurance
Enterprise
Liberty Global Logistics, LLC
Splendid Ace
Lykes Lines Limited, LLC
Lykes Discoverer
Lykes Liberator
Lykes Motivator
Lykes Navigator
TMM Yucatan
Maersk Line, Limited
Maersk Alabama
Maersk Arkansas
Maersk Carolina
Maersk Georgia
Maersk Missouri
Maersk Virginia
Sealand Achiever
Sealand Atlantic
Sealand Charger
Sealand Comet
Sealand Commitment
Sealand Florida
Sealand Intrepid
Sealand Lightning
Sealand Meteor
Sealand Motivator
Sealand Performance
Sealand Pride
Sealand Quality
OSG Shipholding Group, Inc.
Maersk Rapier
Maersk Regent
Maersk Richmond
Overseas Joyce
Patriot Shipping, LLC
Industrial Challenger
Industrial Chief
Waterman Steamship Corporation
Atlantic Forest
Green Dale
P&O Nedlloyd Buenos Aires
P&O Nedlloyd Vera Cruz
The US Maritime Security Program was expanded to 60 vessels from 47 by Congress, with the contracts going to 11 companies and run from 01 October 2005 through 2016. On 29 September 2005 three commercial cargo ships traded Norwegian and Swedish flags for American flags, and picked up the new American names Courage, Honor and Integrity. The three ships, owned by American Roll-On Roll-Off Carriers of Montvale, NJ, also known as ARC.
American Roll-On/Roll-Off Carrier put several vessels in their Amercan-flag fleet that they are using in service from the East Coast to Kuwait. These are not only roll-on, roll-off, they're actually heavier duty, with stronger decks, than some of MSC ships.
On 29 September 2005 CP Ships re-flagged the 3200 TEU CP Yucatan to US flag and changed its name to CP Yosemite in recognition of the ship's enrolment in the US government's new Maritime Security Program which came into effect 01 October 2005 and under which CP Ships expanded its participation compared with the previous MSP. CP Yosemite is one of five vessels operating on the TransAtlantic which CP Ships is committing to MSP and which will be named after US national parks. In due course, the remaining four ships will be renamed CP Everglades, CP Denali, CP Shenandoah and CP Yellowstone.
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