[Federal Register Volume 59, Number 158 (Wednesday, August 17, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-20196]


[[Page Unknown]]

[Federal Register: August 17, 1994]


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Part VIII





Department of Transportation





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Maritime Administration



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Voluntary Intermodal Sealift Agreement; Notice
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DEPARTMENT OF TRANSPORTATION

Maritime Administration

 
Voluntary Intermodal Sealift Agreement

Agency: Maritime Administration, Department of Transportation.

Action: Notice of Voluntary Intermodal Sealift Agreement (VISA).

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SUMMARY: The Maritime Administration (MARAD) announces establishment of 
the Voluntary Intermodal Sealift Agreement (VISA), pursuant to section 
708 of the Defense Production Act of 1950, as amended (50 U.S.C. App. 
2158). This is a new voluntary agreement and is issued in accordance 
with the provisions of 44 CFR part 332. The purpose of VISA is to make 
intermodal shipping services/systems, including ships, ships' space, 
intermodal equipment and related management services, available to the 
Department of Defense as required to support the emergency deployment 
and sustainment of U.S. military forces through cooperation among the 
maritime industry, the Department of Transportation and the Department 
of Defense. Through advance arrangements in joint planning it is 
intended that the participants will provide capacity to support a 
significant portion of surge and sustainment requirements in dry cargo 
or intermodal equipment emergencies.

FOR FURTHER INFORMATION CONTACT: Mr. Thomas M.P. Christensen, Director, 
Office of National Security Plans, Room Pl-1303, Maritime 
Administration, 400 Seventh Street SW., Washington DC 20590, (202) 366-
5900, Fax (202) 488-0941.

SUPPLEMENTARY INFORMATION: The complete, draft text of VISA is 
published below. Copies of VISA and the associated application form are 
being sent, unsolicited, to U.S.-owned companies which provide 
intermodal shipping services/systems. Copies also are available to the 
public upon request.

NOTICE OF MEETING: An open meeting for the purpose of developing the 
final text of VISA will convene at 2 p.m., Wednesday, August 31, 1994, 
in Room 10234, Nassif Building, U.S. Department of Transportation, 400 
Seventh Street, SW., Washington, DC 20590. Representatives of the 
maritime and intermodal transportation industry and interested members 
of the public are invited to attend. Telephonic or facsimile notice of 
intent to attend, given to the point of contact above, will assure 
adequate seating and more convenient access at security-controlled 
entrances.

TEXT OF THE VOLUNTARY INTERMODAL SEALIFT AGREEMENT: Standby Voluntary 
Agreement under Public Law 774, 81st Congress, as amended; ``Voluntary 
Intermodal Sealift Agreement'' (VISA).

Table of Contents

ABBREVIATIONS

DEFINITIONS

PREFACE

VOLUNTARY INTERMODAL SEALIFT AGREEMENT

I. PURPOSE
II. AUTHORITIES
III. GENERAL
    A. Need for this Agreement
    B. History of this Agreement
    C. Participation
    D. Effective Date and Duration of Participation
    E. Withdrawal from this Agreement
    F. Standby Period
    G. Rules and Regulations
    H. Modification/Amendment of this Agreement
    I. Administrative Expenses
    J. Record Keeping
    K. Requisition of Ships of Non-Participants
    L. Plan of Action
IV. ANTITRUST DEFENSE
V. BREACH OF CONTRACT DEFENSE
VI. TERMS AND CONDITIONS
    A. Agreement by Participant
    B. Pooling Resources
    C. Equitable Contribution of Shipping Capacity
    D. Equitable Contribution of Intermodal Equipment
    E. Enrollment of Ships and Equipment
    F. Compensation
    G. War Risk Insurance
VII. INTERMODAL SEALIFT COORDINATING COMMITTEE
VIII. ACTIVATION OF THIS AGREEMENT
    A. Determination of Necessity
    B. Intermodal Sealift Coordinating Committee
    C. The Representative of the Secretary of Defense
    D. Ship and Space Chartering
    E. Leases of Intermodal Equipment
    F. Management Service Contracts
    G. Termination of Charters, Leases and Other Contractual 
Arrangements
IX. JOINT PLANNING IN THE STANDBY PERIOD
X. PLAN OF ACTION: DEVELOPMENT MEETING
XI. APPLICATION AND AGREEMENT

ABBREVIATIONS

``USCINCTRANS''--Commander-in-Chief, United States Transportation 
Command
``DOD''--Department of Defense
``DOT''--Department of Transportation
``FEMA''--Federal Emergency Management Agency
``FTC''--Federal Trade Commission
``MARAD''--Maritime Administration, DOT
``MSC''--Military Sealift Command
``NDRF''--National Defense Reserve Fleet maintained by MARAD
``RRF''--Ready Reserve Force component of the NDRF
``SecDef''--Secretary of Defense
``USTRANSCOM''--United States Transportation Command

DEFINITIONS

``Administrator''--Maritime Administrator.
``Attorney General''--Attorney General of the United States.
``Chairman''--Chairman of the FTC.
``Committee''--Intermodal Sealift Coordinating Committee
``Controlling interest''--more than a 50 percent interest by stock 
ownership or otherwise.
``Director''--Director of FEMA.
``Intermodal equipment''--containers (including flat racks and 
seasheds), chassis, trailers, tractors, lifts, cranes and other 
ancillary items.
``Intermodal shipping services/systems''--includes ships, ship's 
space, intermodal equipment, terminals, related management services, 
and any parts of the foregoing.
``Management services''--management expertise and experience, 
intermodal terminal management, information resources and control 
and tracking systems.
``Participant''--a signatory party to this Agreement, and otherwise 
as defined in this Agreement, III.C.
``Representative of SecDef''--USTRANSCOM.
``Secretary''--Secretary of Transportation.

Preface

    Pursuant to the authority contained in section 708 of the Defense 
Production Act of 1950, as amended (50 U.S.C. App. 2158) (Section 708), 
the Administrator, after consultation with representatives of ocean 
carriers providing intermodal shipping services/systems and with 
representatives of companies which lease containers, chassis and other 
intermodal equipment, has developed this standby agreement for 
voluntary contribution of intermodal shipping services/systems needed 
to meet national defense requirements.
    USTRANSCOM procures commercial shipping capacity to meet normal 
peacetime requirements for ships and intermodal shipping services/
systems through arrangements with common carriers (including services 
contracts), with contract carriers and by charter. DOD, through 
USTRANSCOM, maintains and operates a fleet of ships owned by or under 
charter to the Federal government, in sufficient numbers to meet those 
logistic needs of the military services which cannot be met by 
commercial service. Ships of the RRF may be selectively activated for 
peacetime military tests and exercises, and to satisfy military surge 
operational requirements which cannot be met by commercial shipping in 
time of war, national emergency, or military contingency. Foreign-flag 
shipping may be used if no U.S.-flag ships can meet the operational 
requirement. Through advance arrangements in joint planning described 
in IX. of this Agreement, it is intended that Participants will provide 
capacity to support a significant portion of surge and sustainment 
requirements in dry cargo and intermodal equipment emergencies.
    In time of war or national emergency, ships may be requisitioned 
under authority of section 902 of the Merchant Marine Act, 1936, as 
amended (46 App. U.S.C. 1242) (Section 902).
    In some military contingency operations, more shipping capacity and 
related services may be required than are available under peacetime 
arrangements, but general mobilization of shipping by requisition may 
not be appropriate. This Agreement provides for the voluntary 
contribution of intermodal shipping services/systems in such a way as 
to distribute the burden of such contributions in proportion to the 
capacity owned and controlled by each Participant.
    This Agreement will provide DOD with access to privately-owned 
intermodal shipping services/systems, will provide door-to-door 
intermodal capacity, will create a pool of vessels, vessel capacity and 
intermodal equipment needed in support of national defense activities 
and will provide Participants a defense to civil and criminal action 
for violation of antitrust laws in carrying out this Agreement.
    This Agreement establishes the terms, conditions and general 
procedures under which each Participant agrees voluntarily to make 
intermodal shipping services/systems available at the request of the 
Administrator.
    This Agreement is designed to create close working relationships 
among the Administrator, USTRANSCOM and Participants through which 
military needs and the needs of the civil economy can be met by 
cooperative action. Participants are allowed maximum flexibility to 
adjust commercial operations by cooperation, rationalization of 
services and pooling of vessels, vessel capacity and intermodal 
equipment, Provided, such measures are approved, in advance, by the 
Administrator.
    The shipping capacity made available voluntarily under this 
Agreement may be supplemented by ships requisitioned, under Section 
902, from non-Participants in this Agreement and from Participants.
    The containers and chassis made available voluntarily under this 
Agreement may be supplemented by services and equipment accessed by the 
Administrator through the provisions of 46 CFR Part 340.
    The SecDef will be asked to concur in this Agreement at the 
appropriate stage. SecDef will be asked to approve this Agreement as a 
sealift readiness program for the purpose of section 909 of the 
Merchant Marine Act, 1936, as amended (46 App. U.S.C. 1248) (Section 
909). Withdrawal from or termination of participation in this Agreement 
does not excuse a Participant from Section 909 or any other provision 
of law if said withdrawn or terminated Participant is otherwise subject 
thereto.
    The Director, after consultation with the Attorney General and the 
Chairman, has concurred in this Agreement.

Voluntary Intermodal Sealift Agreement

I. Purpose

    This Agreement establishes procedures for the contribution of 
intermodal shipping services/systems to satisfy DOD needs. This 
Agreement will change from standby to active status upon a joint 
determination by the Secretary and SecDef that a dry cargo shipping 
capacity emergency or an intermodal equipment emergency affecting the 
national defense exists; that the defense requirement cannot be met by 
voluntary arrangements other than this Agreement; and that the 
requirement can be met more efficiently by activating this Agreement 
than by requisitioning ships under Section 902.
    This Agreement includes all intermodal shipping services/systems 
and all intermodal ship types, including container, partial container, 
container/bulk, container/roll-on/roll-off, roll-on/roll-off and barge 
carrier (LASH, SeaBee, etc.). Breakbulk ships may be enrolled in this 
Agreement at the discretion of the Administrator. When consideration is 
being given to diverting intermodal shipping services/systems from 
commercial to defense use, an ocean carrier's entire contribution will 
be considered. The object of this Agreement is to promote and 
facilitate the use of entire intermodal transportation systems and to 
maximize DOD's use of commercial transportation resources while at the 
same time attempting to minimize disruption to commercial operations. 
The Agreement does, however, provide for the utilization of components 
of such systems (e.g., particular ship types) as necessary. Through 
advanced arrangements developed during peacetime joint planning 
described in section IX of this Agreement, it is intended that 
Participants will provide capability to support a significant portion 
of surge and sustainment requirements in dry cargo intermodal equipment 
emergencies.

II. Authorities

    Section 708 of the Defense Production Act, as amended (50 U.S.C. 
App. 2158); Executive Order 12919, 59 FR 29525, June 7, 1994; Executive 
Order 12148, 3 CFR 1979 Comp., p. 412, as amended; 44 CFR Part 332; DOT 
Order 1900.8; 46 CFR Part 340.
    Section 501 of Executive Order 12919 delegated the authority of the 
President under Section 708 to the Secretary, among others. By DOT 
Order 1900.8, the Secretary delegated to the Administrator the 
authority under which this Agreement is sponsored.

III. General

    A. Need for this Agreement--1. The Administrator has found, in 
accordance with Section 708(c)(1), that conditions exist which may pose 
a direct threat to the national defense of the United States or its 
preparedness programs and, under the provisions of Section 708, has 
certified to the Attorney General that a standby voluntary agreement 
for utilization of intermodal shipping services/systems is necessary 
for the national defense.
    2. The quantity of military dry cargo (unit equipment, sustaining 
supplies and ammunition) to be moved for support of a military 
contingency, national emergency, or war in a foreign area could exceed 
the shipping capacity normally available for charter or use from the 
commercial sector. It is desirable to avoid the disruptive effects of 
ship requisition and of intermodal equipment allocation so long as 
military requirements can be met by voluntary cooperation between the 
maritime industry and the Federal government. The Attorney General, in 
consultation with the Chairman, has issued a finding that dry cargo 
capacity to meet national defense requirements cannot be provided by 
the industry through a voluntary agreement having less anti-competitive 
effects or without a voluntary agreement.
    B. History of this Agreement--The concept of this Agreement 
originated in discussions between MARAD and DOD officials on 
arrangements to promote timely availability of ships, equipment and 
management services needed to operate them. Most U.S.-flag shipping 
companies operate ships as part of an integrated land/ocean 
transportation system. In times of emergency, DOD needs not only 
vessels and intermodal equipment, but also the management expertise to 
operate such assets as transportation systems.
    It is anticipated that the Merchant Marine Act, 1936, as amended 
(46 App. U.S.C. 1101 et seq.) will be amended in accordance with H.R. 
4003 to provide for operating agreements between vessel owners or 
operators and the Secretary. This Agreement will constitute an 
Emergency Preparedness Program within the meaning of the amended Title 
VI of the Act proposed in H.R. 4003. This Agreement will constitute a 
sealift readiness program when approved by the SecDef and will meet all 
the conditions set forth under Section 909. An ocean carrier which is a 
Participant in this Agreement is eligible for award of a Shipping 
Agreement or a Container Agreement from MSC without enrollment in any 
other program. An ocean carrier eligible to participate in this 
Agreement but which elects not to do so is subject to enrollment in the 
MSC Sealift Readiness Program (SRP) if it (1) receives operating-
differential subsidy or construction-differential subsidy or (2) wishes 
to carry DOD cargo. A carrier, while a Participant in this Agreement, 
will be subject only to the provisions of this Agreement and not to the 
provisions of the SRP.
    C. Participation--1. An ocean carrier may become a Participant by 
submitting an executed copy of the form referenced in XI. below. Any 
ocean carrier organized under the laws of a State of the United States, 
or the District of Columbia, may be a Participant.
    2. A company which owns, or has obtained through lease, intermodal 
equipment may become a Participant by submitting an executed copy of 
the form referenced in XI. below. Such a company must be organized 
under the laws of a State of the United States or the District of 
Columbia.
    3. The term ``Participant'' includes the entity signing this 
Agreement and all United States subsidiaries and affiliates of that 
entity which own, operate, charter, or lease ships and intermodal 
equipment in the regular course of their business and in which the 
entity holds a controlling interest.
    4. The term ``Participant'' also includes the controlled non-
domestic subsidiaries and affiliates of the entity signing this 
Agreement; Provided, that the Administrator grants specific approval 
for their inclusion.
    5. An entity having an operating agreement with the Secretary shall 
be a ``Participant.''
    6. An entity electing to place itself in a readiness program, such 
as Section 909 or Section 1202(c) of the Merchant Marine Act, 1936, as 
amended (46 App. U.S.C. 1282(c)), shall, upon signing this Agreement, 
be a ``Participant.''
    7. Periodically, a list of Participants will be published in the 
Federal Register.
    D. Effective Date and Duration of Participation--Participation in 
this Agreement is effective upon execution of the application form by 
both the Participant and the Administrator, or their designees, and 
remains in effect until terminated by the Administrator, the Attorney 
General, or the Director, on due notice by letter, telegram, or 
publication in the Federal Register, or until the Participant 
withdraws.
    E. Withdrawal from this Agreement--A Participant may withdraw from 
this Agreement, subject to fulfillment of obligations incurred under 
this Agreement prior to the date such withdrawal becomes effective, by 
giving 30 days written notice to the Administrator; Provided however, 
that a Participant having an operating agreement with the Secretary 
will not withdraw from this Agreement during the period the operating 
agreement is in effect. Withdrawal from this Agreement will not deprive 
a Participant of an antitrust defense otherwise available to it in 
accordance with Section 708. Withdrawal by a Participant subject to 
authorities referred to in C.6. above merely revives direct application 
of those authorities to the Participant at withdrawal.
    F. Standby Period--The ``standby period'' is the interval between 
the effective date of the Administrator's acceptance of an application 
and the date of activation of this Agreement as prescribed in VIII. 
below. The Administrator's acceptance of an application does not have 
or imply any constraint or other effect on the Participant's business 
operations during the standby period.
    G. Rules and Regulations--A Participant acknowledges and agrees to 
abide by all provisions of Section 708, and regulations related thereto 
which are promulgated by the Secretary, the Attorney General, the 
Chairman and the Director. Standards and procedures pertaining to 
voluntary agreements have been promulgated in 44 CFR Part 332. Note is 
taken that 46 CFR Part 340 establishes procedures for assigning the 
priority for use and the allocation of shipping services, containers 
and chassis. The Administrator will inform Participants of new and 
amended rules and regulations as they are issued.
    H. Modification/Amendment of this Agreement--The Attorney General 
may modify this Agreement, in writing, after consultation with the 
Chairman and the Administrator. The Administrator may modify this 
Agreement, in writing, with the concurrence or at the direction of the 
Director after consultation with the Attorney General and the Chairman. 
Modifications initiated by the Administrator will be submitted to the 
Director with the concurrence of the representative of SecDef. If 
modification of IX. below is proposed, the Administrator will also seek 
the concurrence of USTRANSCOM. USTRANSCOM or a Participant may propose 
amendments to this Agreement at any time.
    I. Administrative Expenses--Administrative and out-of-pocket 
expenses incurred by a Participant during the standby period shall be 
borne solely by the Participant. Such expenses may include, among other 
things, traveling to meetings, making reports of owned, chartered and 
leased intermodal ships and equipment as contemplated in VI.E. below 
and keeping records as contemplated in III.J. below.
    J. Record Keeping--1. MARAD and USTRANSCOM have primary 
responsibility for maintaining records in accordance with 44 CFR Part 
332.
    2. The Director of MARAD's Office of National Security Plans shall 
be the official custodian of records related to the carrying out of 
this Agreement.
    3. In accordance with 44 CFR 332.3(d), a Participant shall maintain 
for five (5) years all minutes of meetings, transcripts, records, 
documents and other data, including any communications with other 
Participants or with any other member of the industry or their 
representatives, related to the carrying out of this Agreement. Each 
Participant agrees to make available to the Administrator, the Attorney 
General, the Director and the Chairman for inspection and copying at 
reasonable times and upon reasonable notice any item that the 
Participant is required hereby to maintain. Any record maintained by 
MARAD or USTRANSCOM under this subsection shall be available for public 
inspection and copying unless exempted on the grounds specified in 5 
U.S.C. 552(b) (1), (3) and (4) or identified as privileged and 
confidential information in accordance with Section 708(e).
    K. Requisition of Ships of Non-Participants--The Administrator may 
requisition ships of non-Participants to supplement capacity made 
available under this Agreement and to balance the economic burden of 
defense support among ocean carriers.
    L. Plan of Action--The Participants, under the leadership of the 
Administrator, or the Administrator's designee, shall adopt one or more 
documents to implement this Agreement. Documents to implement this 
Agreement shall be styled ``Plan of Action.

IV. Antitrust Defense

    A. Under the provisions of Section 708, each Participant in this 
Agreement shall have available as a defense to any civil or criminal 
action brought under the antitrust laws (or any similar law of any 
State) with respect to any action taken to develop or carry out this 
Agreement or a Plan of Action, that such act was taken in the course of 
developing or carrying out this Agreement or a Plan of Action and that 
the Participant complied with the provisions of Section 708 and any 
regulation thereunder, and acted in accordance with the terms of this 
Agreement or a Plan of Action.
    B. This defense shall not be available to the Participant for any 
action occurring after termination of this Agreement. Nor shall it be 
available upon the modification of this Agreement with respect to any 
subsequent action that is beyond the scope of the modified text of this 
Agreement, except that no such modification shall be accomplished in a 
way that will deprive the Participant of antitrust defense for the 
fulfillment of obligations incurred.
    C. The defense shall be available only if and to the extent that 
the person asserting it demonstrates that the action was within the 
scope of this Agreement or a Plan of Action.
    D. The person asserting the defense bears the burden of proof.
    E. The defense shall not be available if the person against whom it 
is asserted shows that the action was taken for the purpose of 
violating the antitrust laws.
    F. As appropriate, the Administrator will support applications by 
Participants to the Federal Maritime Commission or the Interstate 
Commerce Commission to exempt this Agreement and any Plan of Action 
from the operation of statutes administered by either agency.

V. Breach of Contract Defense

    Under the provisions of Section 708, in any action in any Federal 
or State court for breach of contract, there shall be available as a 
defense that the alleged breach of contract was caused predominantly by 
action taken by a Participant during an emergency to carry out this 
Agreement or a Plan of Action. Such defense shall not release the party 
asserting it from any obligation under applicable law to mitigate 
damages to the greatest extent possible.

VI. Terms and Conditions

    A. Agreement by Participant--1. Each Participant agrees to 
contribute intermodal shipping services/systems in accordance with this 
Agreement and any Plan of Action applicable to the Participant and at 
such times and in such amounts as the Administrator shall determine to 
be necessary to meet essential needs of DOD for transportation of 
military supplies and equipment during the period this Agreement is 
activated.
    2. Participant agrees to provide all necessary elements to operate 
the intermodal transportation services/systems it contributes.
    3. Each participant agrees to provide, on request, management 
services needed to operate the contributed intermodal transportation 
services/systems; including inland container and trailer and other 
services, for the movement to and from ports of equipment which is 
owned, operated, or controlled by a Participant.
    4. Whenever possible, the Participant which owns, operates, or 
controls a ship or ship capacity contributed will provide the 
intermodal equipment and management services needed to utilize the ship 
at full efficiency. However, upon the recommendation of the Committee 
and at the Administrator's discretion, the ships and intermodal 
equipment of a Participant may be placed under the operational 
management and control of another Participant.
    B. Pooling Resources--Each Participant agrees to make intermodal 
shipping services/systems and intermodal equipment available to other 
Participants when requested by the Administrator, on the advice of the 
Committee. Such requests will be made in order to meet the defense 
requirement, to ensure that overall contributions are made on a 
proportionate basis, and to assure that no Participant is unduly 
hampered in meeting the needs of the civil economy consistent with 
priorities established by the President.
    Participants may agree to cooperate, to rationalize services and to 
pool intermodal assets in order to meet the defense requirement, 
equalize the burden of the contribution and insure continued support to 
the civil economy; Provided, however, that such activities involving 
Participants in the normal course of business when this Agreement has 
not been activated and not to facilitate meeting requirements or 
requests of the Administrator are not covered by this Agreement.
    C. Equitable Contribution of Shipping Capacity--1. Each Participant 
agrees to contribute ships and ship's space under this Agreement in 
accordance with VIII.B.1. and 2. below. The contribution should be in 
the proportion of its ``controlled tonnage'' in each shipping capacity 
category to the total ``controlled tonnage'' of all Participants in 
each such category. Because exact proportions may not be feasible, and 
because unique requirements for a particular category of ships or 
capacity may arise, each Participant agrees that variations are 
permissible at the discretion of the Administrator. Any Participant may 
offer to increase its contribution.
    2. ``Controlled tonnage'' consists of:
    a. Ships which are owned or chartered in by a Participant and 
documented under United States law;
    b. PLUS non-U.S.-documented feeder ships, in which a Participant or 
any of its subsidiaries or controlled affiliates has a controlling 
interest and which are operated as an extension of U.S.-flag line haul 
service;
    c. PLUS any other non-U.S.-flag ships which a Participant may offer 
to designate as ``controlled tonnage'' and to which the Administrator 
agrees; and
    d. LESS ships owned or controlled by a Participant which are 
chartered, leased, or contracted out to others for remaining periods of 
at least six months from the effective date of activation of this 
Agreement and for which there is no termination clause for war, 
national emergency, or military contingency.
    3. The laws of the country of documentation may require the 
approval of that government before ships on its register can be covered 
by this Agreement. The Participant agrees to make a good faith effort 
to obtain the required approval.
    4. The categories of ships are:
    a. Roll-on/roll-off (RO/RO) ships. RO/RO ships which do not have 
installed ramps should be supplied with portable ramps, to the extent 
practicable, by the Participant.
    b. Combination container-RO/RO ships.
    c. Barge carriers (LASH, SeaBee, etc.) The appropriate number of 
lighters should be supplied to operate the vessel at full efficiency.
    d. Containerships, both self-sustaining and non-self-sustaining. 
Three containers should be provided per container space.
    e. Partial containerships and container bulk. Three containers 
should be provided per container space.
    f. Breakbulk ships.
    5. The contribution of each Participant shall be calculated by the 
Administrator as soon as possible after this Agreement is activated. 
The following standards will be used to determine proportionate 
contributions of ``controlled tonnage'':
    a. RO/RO ships--Square feet (meters) of cargo deck area.
    b. Combination container--RO/RO--Square feet (meters) and container 
capacity (expressed in twenty-foot equivalent units).
    c. Barge Carrier--Cargo deadweight capacity.
    d. Partial containerships and container bulk--Cargo deadweight.
    e. Self-sustaining containerships--Total below deck and on deck 
container capacity (expressed in twenty-foot equivalent units).
    f. Non-self-sustaining containerships--Total below deck and on deck 
container capacity (expressed in twenty-foot equivalent units).
    g. Breakbulk ships--Cargo deadweight.
    6. A ship on charter to a Participant shall not be subject to 
contribution under this Agreement in the case where the period of 
contribution would be longer than the remaining term of the 
Participant's charter or in a case where the contribution would 
otherwise breach the terms of the charter party, but such tonnage shall 
be included in the calculation of the Participant's controlled tonnage.
    7. The ``controlled tonnage'' of each Participant shall be divided 
into two categories:
    a. Level I--Vessels of the Participant which are:
    i. Subject to Title VI of the Merchant Marine Act, 1936, as amended 
(46 App. U.S.C. 1171 et seq.) It is anticipated that Title VI will be 
amended in accordance with H.R. 4003 to provide for operating 
agreements between vessel owners or operators and the Secretary. 
Vessels covered by an operating agreement are in Level I.
    ii. Otherwise required by law to be made available to meet national 
defense requirements.
    b. Level II--All other vessels of the Participant.
    Level I vessels shall be provided immediately in response to the 
call of the Administrator and instructions of the Administrator are to 
be observed with the utmost dispatch. Level I vessels will be called 
into service before Level II vessels.
    Level II vessels shall be provided according to the schedule set 
forth in the call of the Administrator. Level II vessels will be called 
into service if and when Level I vessels actually provided are not 
sufficient to meet the emergency. A Participant may offer Level II 
vessels for service as Level I vessels.
    8. Other than the specific use of ships described in VI.C.2.b. 
(foreign-flag feeder vessels), it is expected that vessels covered by 
an operating agreement will be utilized to the maximum extent possible 
for line haul service to meet DOD requirements. When a specific ship 
covered by an operating agreement is removed from regular service to 
meet DOD requirements, a foreign-flag ship may be employed to replace 
the ship taken from regular service.
    9. The Administrator retains the right under law to requisition 
ships of Participants. A Participant's ships which are directly 
requisitioned by the United States or which are under other U.S. 
Government voluntary arrangements shall be credited against the 
Participant's proportionate contribution under this Agreement. Ships on 
charter to DOD when this Agreement is activated shall not be so 
credited.
    D. Equitable Contribution of Intermodal Equipment--
    1. ``Controlled intermodal equipment'' shall mean such equipment as 
is needed in the operation of a Participant's intermodal shipping 
system and which a Participant owns or leases.
    2. During the standby period, the Administrator shall determine the 
inventory of controlled intermodal equipment as of a specific date each 
year.
    3. When an ocean carrier Participant contributes containerships or 
partial containerships, or capacity, it will provide containers in 
accordance with VI.C.4. above and chassis as specified in a Plan of 
Action.
    4. Each Participant agrees to contribute intermodal equipment as 
provided in a Plan of Action, which may require contribution in the 
proportion of its inventory of each type of equipment to the total 
inventory of that type held by all Participants; Provided, that, at the 
discretion of the Administrator, on the advice of the Committee, when a 
Participant contributes specialized equipment which is not available 
from all Participants, its proportionate share of common types of 
equipment may be adjusted so that its overall contribution is in 
approximately the same proportion to its total available inventory as 
are the overall contributions of other Participants to their available 
inventories.
    5. Prior to calls for contributions of intermodal equipment, the 
Administrator, on the advice of the Committee, will determine the 
portion and types of equipment to be acquired from the ship operating 
companies and the portion and types of equipment to be acquired from 
leasing companies.
    6. A Participant may contribute intermodal equipment in excess of 
its proportionate share with the approval of the Administrator, after 
consultation with the Committee.
    E. Enrollment of Ships and Equipment--
    1. The Administrator will maintain a record of ships and equipment 
enrolled under this Agreement according to a Plan of Action. A schedule 
of ships and equipment which are owned and which are controlled by an 
applicant and which the applicant proposes for enrollment will be 
attached to the form referenced in VIII. below. Ships and equipment 
will be enrolled on the date this Agreement becomes effective for the 
Participant. Participants will notify the Administrator of all changes 
to the schedule semi-annually on June 30 and December 31.
    2. The Administrator will make the enrollment data available to 
USTRANSCOM.
    3. Information which a Participant identifies as privileged and 
confidential shall be withheld from public disclosure in accordance 
with Section 708(h)(3) and section 705(e) of the Defense Production Act 
of 1950, as amended (50 U.S.C. App. 2155), and 44 CFR Part 332.
    4. Enrolled ships are required to comply with 46 CFR Part 307, 
Establishment of Mandatory Position Reporting System for Vessels.
    F. Compensation--1. The Administrator shall, in consultation with 
Participants and with the concurrence of USTRANSCOM, promulgate a 
methodology for determining rates of compensation under this Agreement. 
The methodology will be developed as a separate Plan of Action.
    2. Employing the forms, including terms and conditions, found in 
the Plan of Action developed under this Agreement, and the compensation 
determined in accordance with the rate methodology (VI.F.1 and 
implementing Plan of Action), the Administrator or his designee, or 
USTRANSCOM or its designee, shall execute charters, leases and other 
contractual arrangements which implement this Agreement upon its 
activation.
    G. War Risk Insurance--
    1. SecDef will either reimburse for additional commercial war risk 
insurance or provide no-premium government war risk insurance, subject 
to the provisions of Section 1205 of the Merchant Marine Act, 1936, as 
amended (46 App.U.S.C. 1285(a)) upon activation of this Agreement.
    2. Each ship enrolled under this Agreement shall be eligible for 
U.S. Government war risk insurance and for an interim insurance binder 
under the provisions of 46 CFR Part 308, notwithstanding restrictions 
on eligibility set out in Subpart A thereof.

VII. Intermodal Sealift Coordinating Committee

    There shall be an Intermodal Sealift Coordinating Committee 
comprising the Administrator or his designee, USCINCTRANS or his 
designee and a representative from each of the Participants. The 
functions of the Committee are described in VIII and IX below.

VIII. Activation of This Agreement

    A. Determination of Necessity--This Agreement shall be activated 
upon a joint determination by the Secretary and SecDef that a dry cargo 
shipping capacity emergency or an intermodal equipment emergency 
affecting the national defense exists, and that the defense 
requirements cannot be met more effectively and timely without 
activation of this Agreement. A dry cargo shipping capacity emergency 
and an intermodal equipment emergency will be deemed to exist when dry 
cargo shipping capacity and intermodal equipment required to support 
operations of U.S. Forces outside the continental United States cannot 
be supplied through the commercial market or other voluntary 
arrangements. The Administrator shall notify the Attorney General and 
the Chairman when such a determination is made.
    B. Intermodal Sealift Coordinating Committee--
    1. The Administrator or his designee shall chair the Committee, and 
will be assisted by a USTRANSCOM staff member. Upon activation of this 
Agreement, the Administrator or his designee shall convene a meeting of 
the Committee for the purposes of advising participants of DOD 
requirements, soliciting recommendations regarding the implementation 
of this Agreement in accordance with previous joint planning, and 
identifying any special circumstances affecting participants' 
contributions. The Administrator or his designee will administer this 
Agreement and will apportion the contributions of dry cargo capacity 
and management services by the Participants to meet DOD requirements.
    2. If any necessary Plan of Action has not been adopted at the time 
of activation of this Agreement, the Administrator shall assure 
completion of such Plan of Action in order to meet DOD requirements.
    3. The Committee Chair shall:
    a. Notify the Attorney General, the Chairman, the Director and all 
Participants of the time, place and nature of each meeting and of the 
proposed agenda of each meeting to be held to implement this Agreement;
    b. Provide for publication in the Federal Register of a notice of 
the time, place and nature of each such meeting. If a meeting is open, 
a Federal Register notice will be published reasonably in advance of 
the meeting. If a meeting is closed, a Federal Register notice will be 
published within ten (10) days after the meeting and will include the 
reasons for closing the meeting;
    c. Establish the agenda for each meeting and be responsible for 
adherence to the agenda;
    d. Provide for a full and complete transcript or other record of 
each meeting and provide one copy each of transcript or other record to 
the Attorney General, the Chairman, the Director, all Participants and 
the designated staff member of DOD; and
    e. Take necessary action to protect confidentiality of data 
discussed with or obtained from Participants.
    C. The Representative of the Secretary of Defense--USTRANSCOM is 
the SecDef's representative in the implementation of this Agreement.
    D. Ship and Space Chartering--Charters or other agreements for 
ships, ship space or intermodal shipping services/systems will be 
executed, as specified in the relevant Plan of Action.
    E. Leases of Intermodal Equipment--Lease agreements for intermodal 
equipment will be executed, as specified in the relevant Plan of 
Action.
    F. Management Service Contracts--Management service contracts will 
be executed, as specified in the relevant Plan of Action.
    G. Termination of Charters, Leases and Other Contractual 
Arrangements
    1. USTRANSCOM will notify the Administrator as far in advance as 
possible of the prospective termination of charters, leases, management 
service contracts or other contractual arrangements under this 
Agreement.
    2. If this Agreement is superseded by the general requisitioning of 
ships, the Administrator, as a matter of discretion, may replace 
charters made under this Agreement with charters made under 
requisition.

IX. Joint Planning in the Standby Period

    A. Chairmanship--During the standby period, when engaged in the 
planning described in IX.B., the Committee will be co-chaired by MARAD 
and USTRANSCOM.
    B. Planning--
    1. During the standby period the Committee may be convened to:
    a. Develop a Plan of Action to implement this Agreement;
    b. Consider amendments to this Agreement or a Plan of Action;
    c. Engage in joint planning to meet military requirements for 
intermodal shipping services/systems;
    d. Test readiness under this Agreement to meet requirements by 
participating in exercises, including military-sponsored exercises;
    e. Evaluate capabilities under this Agreement to meet requirements; 
and
    f. Discuss methods for improving procedures under this Agreement in 
order to meet requirements.
    2. Meetings for joint planning will be convened annually during the 
standby period, or more frequently if the co-Chairmen so determine.
    C. Security Measures--The Administrator, in cooperation with 
USTRANSCOM and with appropriate security measures, will provide for 
sharing of wartime planning information with Participants, to enable 
Participants to plan their wartime commitment.

X. Plan of Action: Development Meeting

    The Administrator shall convene the Committee within ninety days of 
the effective date of the first Participant's VISA. The purpose shall 
be to develop a Plan of Action to implement this Agreement.

XI. Application and Agreement

    The Administrator has adopted a form on which intermodal ship 
operators and intermodal equipment leasing companies may apply to 
become a Participant in this Agreement (``Application and Agreement to 
Participate in the Voluntary Intermodal Sealift Agreement''). The form 
incorporates by reference the terms of this Agreement.

    By order of the Maritime Administrator.

    Date: August 12, 1994.
James E. Saari,
Acting Secretary, Maritime Administration.

United States of America Department of Transportation Maritime 
Administration

Application and Agreement to Participate in the Voluntary Intermodal 
Sealift Agreement

    The applicant identified below hereby applies to participate in the 
Maritime Administration's voluntary agreement entitled ``Voluntary 
Intermodal Sealift Agreement.'' The text of said Agreement is published 
in ____ Federal Register ______, ______, 19____. This Agreement is 
authorized under Section 708 of the Defense Production Act of 1950, as 
amended (50 U.S.C. App. 2158). Regulations governing this Agreement 
appear at 44 CFR Part 332 and are reflected at 49 CFR Subtitle A.
    The Applicant hereby acknowledges and agrees to the incorporation 
by reference into this Application and Agreement of the entire text of 
the Voluntary Intermodal Sealift Agreement published in ____ Federal 
Register ________, ______, 19____, as though said text were physically 
recited herein.
    The Applicant, as a Participant, agrees to comply with the 
provisions of Section 708 of the Defense Production Act of 1950, as 
amended, the regulations at 44 CFR Part 332 and as reflected at 49 CFR 
Subtitle A, and the terms of the Voluntary Intermodal Sealift 
Agreement. Further, the Applicant, as a Participant, subject to the 
request of the Maritime Administrator, hereby agrees to voluntarily 
make vessels, intermodal equipment and management of intermodal 
transportation systems available for use by the Department of Defense 
and to other Participants in this Agreement for the purpose of meeting 
national defense requirements.

Attest:
----------------------------------------------------------------------
(Applicant-Corporate Name)

(CORPORATE SEAL)

Effective Date:--------------------------------------------------------

----------------------------------------------------------------------
(Secretary)

(SEAL)
----------------------------------------------------------------------
(Applicant-Corporate Name)

By:--------------------------------------------------------------------
    (Signature)

----------------------------------------------------------------------
(Position Title)

UNITED STATES OF AMERICA DEPARTMENT OF TRANSPORTATION MARITIME 
ADMINISTRATION

By: ______________-----------------------------------------------------
    (Maritime Administrator

[FR Doc. 94-20196 Filed 8-16-94; 8:45 am]
BILLING CODE 4910-81-P