Navy Contracting: Military Sealift Command's Control Over Time-Chartered Ships

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Navy Contracting: Military Sealift Command's Control Over Time-Chartered Ships

MSC is responsible for providing ocean transportation for the Department of Defense. MSC fulfills this mission by moving cargo on regularly scheduled commercial ships, government-owned ships, and chartered ships that have been offered by private shipping companies in response to requests for proposals. One of the two types of contracts MSC uses to charter ships is a time-charter contract. Under this contract, MSC pays a daily fee for the use of a ship during a specific period of time, but the owner retains all responsibilities, such as crewing, operating, supplying, and servicing the ship. Time-chartered ships remain under the jurisdiction of their owners during the time that MSC is using them. MSC charters about 30 ships each year under time-charter contracts. MSC also charters ships under bareboat contracts. MSC assumes all ownership responsibilities for ships chartered under this type of contract and considers these ships to be under the jurisdiction of the Secretary of the Navy. The Atlantic Forest, Green Wave, and Green Ridge are three time-chartered ships.