Maersk Line Ltd. starts transfer of USSM’s MSP ships

Maersk Line Ltd. starts transfer of USSM’s MSP ships    Maersk Line Ltd. signed agreements Thursday with the U.S. Maritime Administration to transfer three U.S.-flag container ships enrolled in the Maritime Security Program over to its fleet.
   The vessels, “Sealand Florida,” “Sealand Motivator,” and “Sealand Pride,” were formerly operated by U.S. Ship Management. Maersk Line Ltd. terminated the charters with USSM and will assume direct operations of the ships. In total, the subsidiary of A.P. Moller/Maersk will take over USSM’s 15 MSP ships, giving it 19 vessels enrolled in the program.
   MSP was created in the 1996 Maritime Security Act and is managed by MarAd. The program's purpose is to provide the U.S. military with access to 47 militarily useful U.S.-flag commercial container and roll-on/roll-off ships. The government pays the MSP operators $2.1 million per ship per year to help offset the higher vessel operations costs of these U.S.-flag vessels. The MSP program was recently reauthorized with a larger payment per ship and expanded to 60 ships, starting Oct. 1, 2005.
   USSM had attempted to stop the transfer of its 15 MSP ships, but Maersk Line Ltd. pointed out that in its 1999 MarAd-approved time charters USSM agreed to transfer the operations of the vessels to Maersk should the carrier elect to become the MSP contractor. MarAd approved the transfer June 7.
   USSM, again, tried to stop the transfer in court. However, the U.S. District Court for the District of Columbia ruled in favor of the MarAd decision. On Aug. 12, USSM filed a request for an injunction pending the appeal of the court’s decision. Maersk Line Ltd. officials said the court’s decision was its go-ahead to start the transfers.
   Maersk Line Ltd. said the 15 former USSM vessels would remain U.S.-flagged and U.S.-crewed. “The vessels will be integrated into MLL’s existing U.S.-flag fleet operations, streamlining operations and creating efficiencies in MLL’s global network of intermodal assets, including terminals, cranes, logistical platforms, computerized management systems, containers and chassis,” the company said.