The Department of Transportation this week enrolled nine commercial ships in an initiative to provide additional sealift capacity to the Defense Department.
Secretary of Transportation Pete Buttigieg on July 25 announced the first ships are joining the Tanker Security Program (TSP), “which will help strengthen both our supply chains and our national security by delivering fuel to our armed forces around the world while creating hundreds of good jobs for American mariners.”
TSP, backed by Congress, aims to establish a fleet of privately-owned and commercially viable yet militarily useful tanker vessels to operate in the international liquid fuel product trade while also assuring access to the Department of Defense. During armed conflict DoD would be able to use 10 U.S.-registered ships to supply U.S. military forces with fuel as well.
The program operates within the Maritime Administration (MARAD).
The companies chosen for enrollment are Overseas Shipholding Group, Inc. [OSG], Crowley-Stena Marine Solutions, LLC., and Seabulk Tankers, Inc., each providing three vessels.
The Transportation Department underscored that all participating companies signed operating agreements. Four of the vessels are currently under the U.S. flag and operating in the program while the other five are working with the Coast Guard to “expedite reflagging to U.S. registry to begin operating under TSP agreements.”
The fiscal year 2021 defense authorization act required the Transportation Secretary establish such a fleet of up to 10 vessels, followed by funding appropriated in a fiscal year 2022 law.
“The TSP accomplishes two key maritime sealift objectives: it grows our U.S.-flagged fleet and it significantly expands our ability to deliver vital fuel supplies to support military missions across the globe. Implementation of the TSP is a significant milestone for MARAD and the U.S. maritime industry,” said Maritime Administrator Ann Phillips.
Each ship enrolled in the program will get up to $6 million in annual payments, prorated on a monthly basis.
The department said MARAD issued a solicitation on July 25 seeking applications to enroll in TSP. With these nine vessels set to participate, the department said MARAD still seeks to fill the last operating agreement with another qualified vessel to make it 10 total ships.
Vessels can qualify for the program if they are categorized as a medium-range product tanker between 30,000 and 60,000 deadweight tons with fuel capacity of 230,000 barrels or more, be under 10 years old, and are available to commit to an emergency preparedness agreement for the program authorization period.