[Federal Register Volume 59, Number 134 (Thursday, July 14, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-17106]


[[Page Unknown]]

[Federal Register: July 14, 1994]


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DEPARTMENT OF TRANSPORTATION
Maritime Administration
[Docket S-908]

 

Lykes Bros. Steamship Co., Ltd.; Application for Authorization to 
Increase Participation in a Reciprocal Space Charter and Coordinated 
Sailing Agreement With a Foreign Carrier

    By application of June 28, 1994, Lykes Bros. Steamship Co., Inc. 
(Lykes) requests the Maritime Administration's (MARAD) permission under 
Section 804 of the Merchant Marine Act, 1936, as amended (Act) to 
increase the number of vessels from three to five operated by Deppe 
Linie GmbH (``Deppe'') under the cooperative Working Agreement, Space 
Charter Agreement and Sailing Agreement between Lykes and Deppe (FMC 
No. 232-011253).
    On December 20, 1989, MARAD granted Lykes a waiver under Section 
804 under special circumstances and for good cause shown to participate 
in the reciprocal space charter and coordinated sailing agreement with 
Deppe for the trade between the U.S. Gulf and East Coast and North 
Europe until the expiration of Lykes' ODSA Contract, MA/MSB-451. MARAD 
retained the right to approve any increase in participating vessels by 
Deppe beyond a total of three.
    Deppe intends to operate additional vessels in the trade. 
Accordingly, Lykes now seeks permission to participate in a space 
charter with Deppe for up to five vessels under the agreement. Lykes 
notes that no other change is sought in the Section 804 approval. No 
change is sought in the U.S.-flag vessels covered by the agreement or 
the geographic scope of the agreement.
    Lykes' believes that its participation in a space charter with 
respect to an additional two Deppe vessels is warranted by special 
circumstances and good cause. According to Lykes, the agreement has 
succeeded to date because it permitted Lykes and Deppe to rationalize 
and improve service to their customers in a markedly overtonnaged 
trade. Now Lykes and Deppe both need the flexibility to expand service 
incrementally to meet customer demands.
    Additional of two vessels under this agreement would greatly assist 
Lykes. Lykes maintains that no adverse impact from the addition of such 
vessels could occur to other U.S. vessel operators. First, this request 
would amount to a very modest increase in the ships now available under 
the agreement and only a minuscule increase in the capacity in the 
trade. Second, much of the capacity utilized in this service is devoted 
to the U.S. Gulf/North trade and the trades between Europe/Mexico and 
the U.S./Mexico where there is no competing U.S. carrier.
    Section 804(a) of the Act provides that ``it shall be unlawful for 
any contractor receiving operating-differential subsidy under Title VI 
* * * to own, charter, act as agent or broker for, or operate any 
foreign-flag vessel which competes with any American-flag service 
determined by the Secretary of Transportation to be essential as 
provided in section 211 of this Act.'' Section 804(b) states that this 
provision may be waived by the Secretary under special circumstances 
and for good cause shown.
    This application may be inspected in the Office of the Secretary, 
Maritime Administration. Any person, firm, or corporation having any 
interest in such request within the meaning of section 804 of the Act 
and desiring to submit comments concerning the application must file 
written comments in triplicate with the Secretary, Maritime 
Administration, Room 7300, Nassif Building, 400 Seventh Street SW., 
Washington, DC 20590. Comments must be received no later than 5:00 p.m. 
on July 27, 1994. This notice is published as a matter of discretion 
and publication should in no way be considered a favorable or 
unfavorable decision on the application, as filed or as may be amended. 
The Maritime Administrator will consider any comments submitted and 
take such action with respect thereto as may be deemed appropriate.

(Catalog of Federal Domestic Assistance Program No. 20.804 
(Operating-Differential Subsidies))

    By Order of the Maritime Administrator.

    Dated: July 11, 1994.

Joel C. Richard,
Acting Secretary, Maritime Administration.
[FR Doc. 94-17106 Filed 7-13-94; 8:45 am]
BILLING CODE 4910-81-M