Merchant Marine Equity Act

Summary

Merchant Marine Equity Act - Amends the Merchant Marine Act, 1936 to require the Postal Service, when practicable, to use privately-owned U.S.-flag commercial vessels for the transportation of mail by ocean carrier. Directs the Postal Service to award mail transportation contracts on the basis of competitive bidding. Revises provisions concerning the payment of the operating-differential subsidy, including the determination of whether the payment of an operating-differential subsidy is required in order to meet foreign competition requirements. Outlines certain conditions for the payment of operating-differential subsidy (ODS). Authorizes the Secretary of Transportation (the Secretary) to pay ODS for the operation of a vessel that is 25 years of age or greater before January 1, 1992, and owned by a U.S. citizen on January 1, 1987. Authorizes the Secretary to pay ODS for a foreign-flag feeder vessel of an operator receiving ODS under specified circumstances. Directs the Secretary to pay ODS on an eligible vessel for the difference between subsidizable wages of U.S. crew members and crew members on foreign-flag vessels that are substantial competitors of the vessel covered by the ODS contract. Outlines further conditions concerning the payment of such subsidizable wage costs. Authorizes the Secretary to grant additional subsidy amounts found necessary to offset the effect of governmental aid paid to foreign competitors. Prohibits the Secretary, except in specified circumstances, from paying ODS for a vessel that is more than 25 years of age. Directs an operator that is a party to an ODS contract on January 1, 1987, to amend such contract to comply with changes made under this Act. Authorizes an operator owning or chartering fewer than ten vessels to continue to serve an essential trade route or a portion thereof that the operator was serving on January 1, 1987. Authorizes an operator receiving ODS to operate on an essential trade route served by an operator owning or chartering ten or fewer vessels on such route, under specified circumstances, including the determination of the need for increased service along such route. Requires a contract that is requested to be amended to comply with changes made under this Act to be entered into within 60 days after request. Provides the effective dates of such amended contracts. Limits the ODS payable to an operator for vessels in operation during 1986. Prohibits an operator receiving ODS from owning, chartering, or operating a foreign-flag vessel that provides service between the United States and a foreign country. Allows, however, operators already in such service on January 1, 1987, to continue in such service until October 1, 1988. Authorizes the operation of foreign-flag vessels by operators receiving ODS payments in certain specified circumstances. Outlines conditions for the provision of domestic intercoastal or coastwide service by operators not receiving ODS payments. Revises provisions concerning the transportation in American vessels of Government personnel and cargoes to direct the Secretary to require an owner or operator of a vessel to reimburse the Government at a fair and reasonable rate for the transportation of Government cargo based on a return voyage in ballast, under certain circumstances. Directs the Secretary to maintain a list of vessels that may be scrapped in a foreign country, and to provide such list on a monthly basis to all agencies using privately-owned U.S.-flag commercial vessels to transport preference cargoes. Requires that, on a foreign-flag feeder vessel for which an ODS contract has been granted, all of the seamen of such vessel be U.S. citizens.

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1 official file

• Introduced in House

  summary · EN · 11 February 1987

  Open at official source

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