Friday, November 26, 2021

Viking to cruise MS? Not so fast

U.S.-flag operators - Alaskan Dream Cruises, American Cruise Lines, American Queen Steamboat Company, The Boat Company and UniCruise Adventures - are questioning the Maritime Administration’s (Marad) opinion in a proposed deal to allow Switzerland-based Viking Line sail in U.S. waters on the Mississippi River. They want to know why an arrangement between Viking, and an affiliate (River 1 LLC) of Edison Chouest, is a time charter and not a bareboat charter. Vessels can be time chartered to non-citizens, but U.S. citizens must have operational control. Operators want Marad to be open about its deliberations that are required by law. At issue is the expected entry into the U.S. market next year of the 450-foot cruise ship Viking for operation on the Mississippi River. The ship is being built at Edison Chouest’s Galliano, La., shipyard. Marad said River 1 LLC proposed time chartering “a cruise vessel that it would construct, own and operate, to Viking USA, a non-citizen,” for an initial term of eight years with options to extend, according to documents on Marad's website. (https://www.maritime.dot.gov/national-security/strategic-sealift/transferring-us-flag-vessels-foreign-ownership-reflagging.) The 2021 National Defense Authorization Act requires Marad to issue a public notice, get comments and provide a detailed summary of a time charter approval. Operators say Marad didn’t provide any standards supporting its decision. Marad told River 1 in an advisory opinion the charter was a bona fide time charter that complies with the law. The U.S.-flag operators want a full airing of the time charter details before Marad's final decision. (Source: Work Boat 11/23/21) Marad opinion questioned in proposed Viking Line deal | WorkBoat

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