The U.S. Transportation Command (Transcom) has announced Universal Service Contracts that it estimates could be worth about $6 billion to 22 U.S.-flag shipping companies over a three-year period.
They are indefinite-delivery/indefinite-quantity fixed-price contracts for both international ocean transportation and intermodal distribution services.
The Maritime Administration of the U.S. Department of Transportation asked carriers to offer per-unit prices (for example, per container and per roll-on/roll-off unit) on various ocean routes. Companies made bids to carry cargo at fixed rates for a one-year period beginning on Sept. 1, but there is no guarantee the military will actually use their services. Carriers also have the right to rebid for two additional years.
Cynthia Bauer, a Transcom spokeswoman, said the estimate on the value of the contracts was developed by looking at historic volumes that have been contracted by the command, the military’s projected transportation needs for the coming three years, the routes likely to be used, and the rates being offered by the carriers.
“It’s an estimate of the maximum that will be awarded,” she said.
Transcom estimated the contracts to be worth:
- $2.1 billion to Maersk Line, Ltd., Norfolk, Va.
- $565 million to Farrell Lines, Inc., another Maersk ro/ro affiliate based in Norfolk, Va.
- $1.7 billion to American President Lines, Ltd., Inc., Washington.
- $553 million to American Roll-On Roll-Off Carrier, L.L.C., Park Ridge, N.J.
- $362 million to Liberty Global Logistics, L.L.C., Lake Success, N.Y.
- $338 million to Hapag-Lloyd USA, L.L.C., Tampa, Fla.
- $142 million to Central Gulf Lines, Inc., Mobile, Ala.
- $51 million to Foss International, Inc., Seattle.
- $39 million to Matson Navigation Co., Inc., Oakland, Calif.
- $25 million to Sealift, Inc., Oyster Bay, N.Y.
- $15.6 million to Transatlantic Lines, Greenwich, Conn.
Other carriers awarded contracts with values of less than $6.5 million included Crimson Shipping Co, Inc., Chickasaw, Ala.; Crowley Liner Services, Inc., Jacksonville, Fla.; Hamburg Sud North America, Inc., Morristown, N.J.; Polynesia Line Limited, Larkspur, Calif.; Dome Chartering & Trading Corp., Annapolis, Md.; Superior Maritime Services, Inc., Weston, Fla.; Teras BBC Chartering, LLC, Bellaire, Texas; Toho Shipping K.K., Japan; Trailer Bridge, Inc., Jacksonville, Fla.; US Ocean, Baton Rouge, La.; and Sea Star Line of Jacksonville, Fla. - Chris Dupin