MarAd OKs APL Section 804(a) Waiver Request

MarAd has agreed to a request filed by American President Lines (APL) for a section 804(a) waiver of the Merchant Marine Act, 1936, as amended, to permit APL to use space on vessels operated by Transportation Maritima Mexicana, S.A. de C.V. (TMM) for transpacific carriage of cargoes in U.S. foreign trade.

The application was assigned Docket S-907, and published in the Federal Register on June 23, 1994.

MarAd determined that there would be no adverse competitive impact on U.S.-flag operators as a result of the waiver.

The agency also noted that APL has entered into a slot charter agreement with TMM in foreign-to-foreign trade between Asia and Mexico, and APL would use space on the TMM vessels to accommodate overflow cargoes, to carry these cargoes between foreign and U.S. ports.

Section 804 precludes subsidized U.S.-flag operators or related companies or persons from operating foreign-flag vessels which compete with essential U.S.-flag shipping services unless the Secretary of Transportation waives the provisions of this section for a specific period of time.The agency found that allowing APL to utilize a portion of its space on the TMM vessels for the carriage of U.S. foreign trade cargoes, in addition to foreign-to-foreign cargoes, would benefit APL's shipping customers. In addition, MarAd noted that comments and/or objections to the grant of APL's application were filed by the Seafarers' International Union of North America, Pacific District on behalf of the members of the Marine Firemen's Union, Sailors' Union of the Pacific, and Seafarers' International Union AGLIWD.

After review of the comments, MarAd found that the unions raised no persuasive reason within the scope of section 804 to deny APL's application.

Other stories from September 1994 issue


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