Lykes to get $145-million in MSP subsidies over 10 years

Lykes to get $145-million in MSP subsidies over 10 years    Five containerships of Lykes Lines, a subsidiary of CP Ships, have been included in the 60-strong list of U.S.-flag vessels that will qualify for subsidies under the federal government’s new Maritime Security Program (MSP).
   Beginning Oct. 1, the five Lykes vessels, currently operating on the transatlantic, will operate with MSP subsidies. Over the 10-year contract term, the subsidy will total $145 million.
   The government subsidy is designed to offset the higher cost of operating under the U.S. flag. Lykes' MSP ships will operate on the transatlantic.
   The selection of the five vessels represents an increase in Lykes’ participation in the MSP program. It has operated five U.S.-flag ships in a single loop on the transatlantic, but only three are MSP ships. The current MSP program is set to expire Sept. 30.
   Other major beneficiaries of the new MSP program include Maersk Line Ltd. and APL.