[Federal Register Volume 60, Number 58 (Monday, March 27, 1995)]
[Notices]
[Pages 15813-15814]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-7427]



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DEPARTMENT OF TRANSPORTATION
Maritime Administration
[Docket S-919]


Lykes Bros. Steamship Co., Inc.; Application for a Waiver of 
Section 804(a) of the Merchant Marine Act, 1936, as amended, to permit 
Foreign-Flag Reciprocal Space Charter, Sailing, and Cooperative Working 
Agreement

    Lykes Bros. Steamship Co., Inc. (Lykes), by application dated March 
16, 1995, requests waiver of the provisions of section 804 of the 
Merchant Marine Act, 1936, as amended, through the expiration of its 
operating-differential subsidy contract, December 31, 1997, to permit a 
reciprocal space charter, sailing, and cooperative working agreement 
with Evergreen Marine Corporation (Evergreen) in the U.S. foreign 
commerce.
    The agreement, according to Lykes, covers the trade between the 
U.S. gulf and east and west coasts on the one hand and North Europe on 
the other. The typical itinerary for Lykes' U.S.-gulf and east coast/
North Europe vessel is Galveston, New Orleans, Miami, Charleston, 
Norfolk, New York, Boston, Antwerp, Bremerhaven, Felixstowe, LeHavre 
and Boston. The Evergreen service covered by this Agreement will be 
provided by the vessels dedicated to its round-the-world service. 
Evergreen's westbound trans-Atlantic service typically calls Hamburg, 
Thamesport, Rotterdam, Antwerp, LeHavre, New York, Norfolk, Charleston, 
and Long Beach before proceeding west across the Pacific. The ordinary 
eastbound trans-Atlantic itinerary for Evergreen is Long Beach, 
Charleston, Baltimore, New York, LeHavre, Antwerp, Thamesport, and 
Hamburg.
    Lykes notes that contingent on the Maritime Administration's 
approval and expiration of the Federal Maritime Commission's review 
period, Lykes has entered into an agreement with Evergreen for a 
reciprocal space charter, coordination of sailings, and cooperative 
working arrangement in these services. Under the agreement, the 
companies will negotiate and agree upon reciprocal space charters on 
their respective vessels in the trade and upon sailings coordination as 
appropriate. Lykes points out that the agreement is intended to permit 
Lykes to achieve better utilization of the vessels committed to North 
Atlantic services by establishing a course of slot chartering business 
with Evergreen. Through the use of slots on Evergreen's vessels the 
agreement will enable Lykes to offer shippers broader, more responsive 
service without any additional capital outlay. The opportunity to 
rationalize [[Page 15814]] schedules, Lykes contends, will permit 
operational savings to be realized and lend flexibility to Lykes' 
itineraries.
    Lykes states that addition of vessels to the services of Lykes or 
Evergreen beyond those currently operated or under contract for 
construction for this trade is not contemplated. Accordingly, Lykes 
concludes, the agreement will have no substantial impact on U.S.-flag 
carriers in the North Atlantic trade. 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 7210, Nassif 
Building, 400 Seventh Street SW., Washington, DC 20590. Comments must 
be received no later than 5 p.m. on April 10, 1995. 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: March 22, 1995.
Joel C. Richard,
Secretary.
[FR Doc. 95-7427 Filed 3-24-95; 8:45 am]
BILLING CODE 4910-81-P