CARRIER SEEKS MARAD RULING TO CARRY PREFERENCE CARGO

CARRIER SEEKS MARAD RULING TO CARRY PREFERENCE CARGO    Sabine Transportation Co., owner of several U.S.-flag tankers, is seeking a preliminary ruling from the Maritime Administration to operate in the U.S. cargo preference trade using a ship that's to be converted from a tanker to a bulk carrier in a foreign shipyard.
   The company wants clearance from MarAd on the issue before it sends out bid invitations to shipyards to do the conversion work.
   Sabine wants MarAd to reverse a 1994 ruling, in which the agency held that a tanker, the Golden Monarch, which was converted to a bulk carrier in Korea, was not eligible to participate in the cargo preference trade. Having been turned down for the cargo preference trade, the ship was eventually scrapped.
   The cargo preference trade is generally reserved for U.S. built and U.S.-owned ships.
   Sabine said that conversion work in the United States would be too costly. The company urged MarAd to reveres its 1994 decision, claiming that it had no positive impact on the industry. Such a policy eliminates seafaring jobs and “destroys good American ships,” Sabine said.
   Comments are due at MarAd in Docket 2000-8292 by the close of business Dec. 1.