Carrier passing through Malta to gain access to military shipments

by Franco Aloisio

Maersk Sealand will be increasing the number of container ships operating in the Mediterranean-Gulf shipment line by means of the Malta Freeport, shipping sources said.

The service links the United States and Gulf coasts with the Mediterranean. The ships, which will be shifted from the carrier's Vessel Sharing Agreement strings in the Atlantic, will provide important capacity for US military and cargo-preference shipments such as food aid.

US military shipments move regularly to ports in southern Europe, such as war-torn Yugoslavia, and aid cargoes have moved regularly to countries in the Black Sea, which have suffered from natural disasters.

US law dictates that government-owned or financed cargo shipped internationally must move on US-flag vessels. Such cargo command premium rates. The Med-Gulf

service links Charleston; New York-New Jersey; Miami; Houston and Freeport, Texas; Algeciras and Valencia, Spain; Malta; and Gioia Tauro and Genoa, Italy.

Up to four US-flag Econships will shift to the Med-Gulf later this month.

They will join another US-flag ship, the Sea-Land Innovator, and up to three Marshall Islands-registered ships, all from the Maersk Sealand fleet. In all, six ships will be used in the service.

It will be the first time that Maersk Sealand, the world's largest container shipping line, will be in a significant position to pick up cargoes reserved for US-flag ships. While Maersk ran several US-flag ships on this service some years ago, the company had no real clout in the sector before last December's acquisition of the international operations of Sea-Land Service Inc. Meanwhile, P&O Nedlloyd, fresh off winning Maritime Administration approval to buy Farrell Lines, said it plans to upgrade the US-flag carrier's US-Mediterranean service to weekly and offer faster transit times to the Eastern Mediterranean.

Transit times to the Eastern Mediterranean will be shortened by using Malta as a transhipment point for Italian cargo. Eastbound cargo to Italy will be offloaded at Malta and delivered by a vessel on Farrell's westbound service.