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Page 112: of Maritime Reporter Magazine (June 1992)
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Proposal Would Lift
Restrictions On Foreign
Cruise Ships
The Bush Administration is pres- ently considering a proposal that would exempt foreign-flag cruise ships from the U.S. Passenger Ser- vices Act of 1886, allowing them to carry passengers between U.S. ports.
West Coast port operators have long been pushing for such an ex- emption, which they believe would greatly increase passenger activity.
Staunchly opposing the proposal,
U.S. shipping operators say that the 1886 Act is a footnote of the Jones
Act, which protects the nation's shrinking domestic U.S.-flag fleet.
The Bush Administration has stated that it strongly supports the
Jones Act and does not believe that a repeal of the 1886 Act sets any precedent towards weakening it.
Under Current legislation, a for- eign passenger ship leaving an Alas- kan port must first stop in Canada or Mexico before it may take pas- sengers to a port in California. As a result, the lucrative Alaskan cruise market is based in
Vancouver, Canada.
Greek Buyers Dominate
Bulk Ship Market
In recent weeks Greek shipown- ers have been dominating a busy ship sale and purchase market, with the sale in early May of the bulk carrier Kapetan Yannis to a Greek buyer at an above market price sparking a series of Greek old and new tonnage acquisitions.
While brokers say that it is still to early to determine if Greek ship- owners have decided to begin re- building their fleets, there have been tentative signs of an upturn in sec- ondhand ship prices and several
Greek owners are making major purchases.
Greek and Norwegian shipown- ers currently control the two largest merchant fleets in the world, with the 43 million-dwt registered Greek fleet standing slightly above that of
Norway's 40 million dwt.
The Norwegians have tended to be net sellers and the Greeks net buyers in the past few months, ac- cording to a London director of Den
Norske Credit-bank, Richard
Keisner. Rather than expanding their fleets, however, it would ap- pear that the Greeks are carrying out fleet upgrades, being content to maintain their merchant fleets at present levels and invest surplus cash elsewhere, he continued.
Asian Shippers Move
To Stem Increasing
Carrier Surcharges
Ocean carriers have been warned by Asian shippers that the continu- ing spread of surcharges must be stopped and have asked the ship lines to stop enacting rate increases without consultations or warnings.
The surcharges are fees being added to the normal freight rates to cover unforeseen expenses such as increases in fuel costs.
The Federation of Asian Ship- pers' Councils have asked govern- ments in the region to clamp down on shipowners in an attempt to "curb the rampant proliferation of sur- charges under all kinds of names."
It further questioned whether car- rier antitrust immunity issued by the European Community extended to surcharges involving inland op- erations.
Carrier representatives disputed the shipper's claims saying that rates in the area are as low as they have ever been. In fact, shipping lines have expressed their concerns over the increase in the amount of paper- work are being asked to manage $56,670 Contract
To Earl Industries
The Supervisor of Shipbuilding,
Conversion and Repair, Portsmouth,
Va., has awarded a $56,670 contract to Earl Industries, Inc., Portsmouth,
Va., for the technical availability of the command ship Mt. Whitney (LCC-20).
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