Ocean Carriers Seeks MarAd Approval For T-5 Tankers Charter To MSC

The Maritime Administration has received a request from Ocean Carriers, Inc., for section 805(a) permission for its affiliates to be the bareboat charterers of up to five T-5 tankers to be time-chartered by the Military Sealift Command (MSC). The MSC charter agreement specifies that the tankers are to have worldwide trading privileges, which could include operations in the domestic coastal and intercoastal trades.

Ocean Carriers was recently awarded a contract to construct and charter to the MSC two T-5 replacement tankers with options for three more. They will be built by American Ship Building Company for Ocean Product Tankers, Inc., a subsidiary of Ocean Carriers' parent company, Ocean Shipholders, Inc. (see MR/ EN November 1982). The vessels, scheduled for delivery in 1984, will be bareboat chartered to other subsidiaries of Ocean Shipholdings and time chartered to the MSC.

Section 805(a) of the Merchant Marine Act of 1936, as amended, prohibits subsidized operators and their affiliates from participating in domestic shipping activities without written permission from MarAd. Ocean Carriers currently operates four subsidized vessels. The written permission from MarAd is requested only because of its affiliation with the bareboat charters of the T-5 tankers. It does not propose to operate its chartered vessels in the domestic trades.

Maritime Reporter Magazine, page 24,  Feb 15, 1983

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Maritime Reporter

First published in 1881 Maritime Reporter is the world's largest audited circulation publication serving the global maritime industry.