Proposal Calls For Ship's Spare Parts To Be Based Ashore

The Maritime Subsidy Board (MSB) has authorized publication in the Federal Register of a notice that it is proposing a new policy permitting spare parts to be based ashore. The proposal also specifies a predetermined limit on the amount of constructiondifferential subsidy (CDS) for the cost of machinery and electric plant spare parts which are in addition to those required by the American Bureau of Shipping (ABS). This policy will apply to all ships now under contract and will form a basis for permitting CDS for a Change Under Contract, provided that a request for subsidy is submitted to MarAd before delivery of the vessel.

Presently, CDS is permitted only for spare parts carried aboard ship, except for spare propellers and tail shafts. The proposed policy provides a table of 23 classes (based on cost) of machinery and the applicable permissible percentage of the base cost of the equipment which the spares may represent. The allowance for the spares in excess of ABS requirements (which are customarily included in the base cost of the equipment) will be included in the contract price for all new contracts. Allowances will be fixed, and changes in existing contracts will be computed based on the original estimate. The choice of necessary spare parts will be left to the owner.

Parties having an interest in the matter may file written comments with the Secretary, MSB, Room 3099-B, Maritime Administration, Department of Commerce, Washington, D.C. 20230.

Maritime Reporter Magazine, page 4, Jul 15, 1977

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