The new agreement (MA/MSP-108) provides for the operation of the product tanker Baltic Mariner in MSP. Under the agreement, the vessel is required to re-flag under U.S. documentation and employ U.S. citizen merchant mariners.
MarAd noted that Ocean Shipholdings qualified for the award based on its status as a U.S. citizen-owned company as defined in Section 2 of the 1916 Shipping Act.
MSP, which is part of the 2003 Maritime Security Act, provides the government immediate access to 60 modern container, roll-on/roll-off and heavy-lift vessels and product tankers in times of war and national emergency. Government payments to participating operators are $2.6 million per ship per year for fiscal years 2006 to 2008, $2.9 million for fiscal years 2009 to 2011, and $3.1 million for fiscal years 2012 to 2015. Payments are subject to annual appropriations.
