AMO Currents - All ship operators participating in MSP commit to program through 2025

AMO Currents - Posted: June 21, 2013

All ship operators participating in MSP commit to program through 2025

All of the companies operating ships in the Maritime Security Program fleet have signed operating agreements extending their commitments to the program through 2025, the year through which the MSP is authorized.

"It was a challenge for most operators to make this substantial long-term commitment in vessels and intermodal logistics capability given the stress they are under due to shortfalls in FY13 funding, uncertainties of sequestration going forward, reduced government impelled cargos, reduced rates and increasing cost differentials to remain under U.S.-flag," wrote Acting Maritime Administrator Paul Jaenichen in a letter to the presidents of each U.S. seagoing union with members working in the MSP fleet.

"While this program will give DoD the significant sealift and global logistics capability it needs, MARAD's focus and challenge will be ensuring MSP operators remain commercially viable in order for the fleet to survive and prosper through 2025," Jaenichen wrote.

American Maritime Officers represents all licensed officers aboard 15 ships in the MSP fleet.