Approve Procedures Necessary To Implement Change In CDS Rate

The Maritime Subsidy Board has approved procedures for implementing the series construction clause of the Maritime Appropriations Authorization Act for Fiscal Year 1979, which provides for a 5-percent reduction in the construction- differential subsidy (CDS) rate for vessels not constructed as part of an existing or future vessel series.

The Maritime Administration's Office of Ship Construction will evaluate each CDS application and determine whether or not the vessel is part of a series. That office will forward the determination to MarAd's Office of Shipbuilding Costs for incorporation in that office's recommendations to the Board concerning reasonable domestic price and related matters.

The Board also determined that two recent CDS awards—for vessels to be built for Levingston Falcon I Shipping Company and three subsidiaries of Occidental Petroleum Corporation — are not covered by this provision. The funds to construct those ships will be allocated from fiscal year 1978 appropriations carry-over.

Maritime Reporter Magazine, page 4, Nov 15, 1978

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Maritime Reporter

First published in 1881 Maritime Reporter is the world's largest audited circulation publication serving the global maritime industry.