Posted:
May 31, 2013
The Department of Transportation has reported funding for the Maritime Security Program fleet of 60 U.S.-flagged militarily useful ships is expected to run out before the close of the fiscal year at the end of September.
The last full payment to MSP vessel operators for fiscal year 2013 is expected to be made in July. In August, a reduced payment to operators is anticipated. For the month of September, MSP funding for FY 2013 is expected to have been exhausted.
The underfunding of the MSP this fiscal year was attributed to a shortfall under the continuing resolution funding the federal government, as well as sequestration.
The Maritime Administration will be required by law to provide formal notification to Congress of any failure to meet its obligations to operating companies with vessels enrolled in the MSP.
The outcome of this shortfall is not known at this point. Fiscal year 2014 will begin Oct. 1 and full funding of the MSP for the next fiscal year has been requested by MARAD.
American Maritime Officers represents all licensed officers aboard 15 ships in the MSP fleet.
Maritime Security Program fleet faces funding shortfall in final months of fiscal year 2013
The Department of Transportation has reported funding for the Maritime Security Program fleet of 60 U.S.-flagged militarily useful ships is expected to run out before the close of the fiscal year at the end of September.
The last full payment to MSP vessel operators for fiscal year 2013 is expected to be made in July. In August, a reduced payment to operators is anticipated. For the month of September, MSP funding for FY 2013 is expected to have been exhausted.
The underfunding of the MSP this fiscal year was attributed to a shortfall under the continuing resolution funding the federal government, as well as sequestration.
The Maritime Administration will be required by law to provide formal notification to Congress of any failure to meet its obligations to operating companies with vessels enrolled in the MSP.
The outcome of this shortfall is not known at this point. Fiscal year 2014 will begin Oct. 1 and full funding of the MSP for the next fiscal year has been requested by MARAD.
American Maritime Officers represents all licensed officers aboard 15 ships in the MSP fleet.