January 1977 - Maritime Reporter and Engineering News

MSB Approves States And MorMac Exchange Of Vessels

The Maritime Subsidy Board (MSB) has approved the applications of States Steamship Company and Moore-McCormack Lines, Incorporated (MorMac) to exchange nine vessels.

The MSB approval enables States to exchange four of its Mariner vessels for five of Mor- Mac's C3 freighters. MorMac will pay $20.4 million to States, less the value of assumed mortgages and the trade-in value of the C3s.

Four of the C3 vessels, the Mormacpride, Mormaccove, Mormacscan, and the Mormaclake, will be traded in to the Maritime Administration, and credited against the Nevada, a 20,000-dwt roll-on/roll-off vessel which was delivered to States by Bath Iron Works Corp. on November 30, 1976. The Board approved a trade-in value of $2.5 million for each of the four C3 vessels. Net proceeds from the trade-in will be deposited in States' Capital Reserve Fund. The fifth C3 vessel, the Mormacbay, may be traded in when the Illinois, also a 20,000-dwt ro/ro vessel being built by Bath, is delivered. The Board denied States' request to deliver the Mormacbay to the National Defense Reserve Fleet until the Illinois is delivered.

The four C3 vessels to be traded in after delivery of the Nevada will, in the interim, be sub-bareboat chartered to MorMac. The Mariner vessels will be operated by MorMac in its U.S. Atlantic to South and East Africa service (Trade Route 15-A).

The Board approved the reassignment of the appropriate construction-differential subsidy contracts under which the vessels were built, and authorized amendm jnt of the companies' respecti e operating-differential subsidy contracts to reflect the changes in ownership.

The C3 vessels involved are all breakoulk freighters of approximately 12,500 dwt built in 1960 and 1961. The Mariner vessels, of approximately 14,300 dwt each, were built in 1962.

Other stories from January 1977 issue


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