Omnibus spending bill to increase MSP stipend by nearly $2m

With only 57 active ships in the Maritime Security Program, MarAd is seeking additional vessels and increasing the per ship stipend from $3.1 million to $5 million to help U.S.-flag carriers offset higher operating costs.    The omnibus spending bill signed by President Obama on Friday includes a provision that will increase the payment for up to 60 ships enrolled in the Maritime Administration’s Maritime Security Program from $3.1 million to $4,999,950 for fiscal year 2017, $5 million for fiscal years 2018-2020, and $5,233,463 in FY 2021.
   The amount of the stipend, which helps offset the higher cost of operating ships in international trade with U.S. seafarers and ships registered in the U.S., depends on appropriations each year.
   The stipend is available to operators of active, commercially-viable, privately-owned vessels that can be used to meet national defense and other security requirements during a national emergency and also to help maintain a United States presence in international commercial shipping.
   “Our national defense and security have long relied on the robust sealift capabilities of the Maritime Security Program fleet. The recent funding increase for this critical core capacity of our U.S Flag fleet will sustain our nation’s logistics mobility across a broad range of military operations,” Maritime Administrator Paul “Chip” Jaenichen said of the provision.
   Currently, there are only 57 “active” vessels in the MSP program.
   According to MarAd, one MSP vessel is inactive and the owners are in the process of replacing it with another vessel under their operating agreement.
   MarAd has a requirement for 60 ships in the program, and it recently issued a Federal Register Notice seeking applications for additional vessels in the program.