AMERICAN President Lines (APL) has received permission from the United States Maritime Administration (MarAd) to operate six vessels, now under construction, under foreign registry when they enter transpacific service next year.
Sea-Land Service is still awaiting MarAd approval on five of its applications to put US-flag vessels under the registry of the Marshall Islands.
APL was granted a waiver on the provisions of Section 804 (a) of the Merchant Marine Act of 1936.
This requires participants in the US Government operating differential subsidy programmes to obtain MarAd approval in order to operate ships under a foreign registry in US commerce trade.
Besides standard 804 (a) conditions, MarAd has set conditions to ensure that the US Government will have access to the ships in times of crisis, and to preserve the opportunity to enroll the ships in a future maritime programme, should Congress and the Administration enact one.
MarAd also stipulated that APL does not scrap or reflag any ships currently under an operating subsidy contract prior to October 1 next year.
John Lillie, chairman of APL's parent, American President Companies, said the company accepted these conditions.