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2. All requests for waivers will be immediately forwarded by the Maritime Administration to the New York Maritime Exchange, 80 Broad Street, New York 4, N.Y., for posting where they will be immediately available to all shipowners and the wire service. Brokers and principals to be identified whenever associated.
3. If, after 5 days from filing with the Maritime Administration, no suitable offer has been received from any American shipowner, the waiver will be considered granted.
All American shipowners belong to the maritime exchange, insofar as we know.
That is the substance of the suggestions from the Association of Ship Brokers and Agents and, if you will note, the essence of his sug. gestions is that we do not rely on the publishing in newspapers but add in a posting in the exchange. We thought that a good suggestion and it is accepted.
This letter is from Mr. W. P. Rathbone of the Columbia Steamship Co. and reads as follows:
GENTLEMEN : Thank you for your letter of December 11, enclosing a proposed draft of “Notice to Export and American Shipowners on Shipment of Wheat and Wheat Flour to Soviet-Bloc Countries” and requesting our comments or suggestions prior to its publication.
Our one suggestion would be to increase the period for U.S.-flag ships to have the opportunity to meet the shipping schedules if possible. From a review of our operations and chartering, it would appear that we would require perhaps 45 to 60 days to position our vessels.
The only suggestion that was made by this particular correspondent was for a period of 45 to 60 days to position their vessels.
This next letter is from Harold A. Thurston from Pocahontas Steamship Co. and is dated December 13, 1963. The letter reads as follows:
GENTLEMEN : We have reviewed the proposed draft of "Notice to Exporters and American Shipowners on Shipment of Wheat and Wheat Flour to Soviet-Bloc Countries."
We are in complete agreement with the procedures outlined and feel certain that you have devoted sufficient thought and effort to this project so that any mechanics you decide on will be acceptable to us.
There are other letters here and I am going to pick the ones that would be primarily interested in this particular business.
This letter is from Mr. Alfred Segal of the American Trading & Production Corp. The letter is dated December 16, 1963, and reads as follows:
GENTLEMEN : We acknowledge with thanks yours of December 11 to which was attached a proposed draft of "Notice to Exporters and American Shipowners on Shipment of Wheat and Wheat Flour to Soviet-Bloc Countries."
Our only comment is that we feel such regulation, in our opinion, covers the situation of waivers quite adequately.
The next letter is from Keystone Shipping Co. and is signed by Mr. Karl R. Kurz in which he made the following suggestion:
As a suggestion, we believe that the exporter, in applying to the Maritime Administration for a waiver of the 50 percent U.S.-flag requirement, should also have a certification by at least one recognized dry-cargo or tanker-chartering broker stating that the entire available American-flag steamship charter market has been canvassed and this statement to be supported by a list of the steamship owners and agents who were actually contacted. This information would serve as a doublecheck for the Maritime Administration to substantiate the nonavailability of American ships and thereby protect the American-flag steamship business.
The next letter is from Mr. A. E. Fridberg of the Matson Navigation Co. and the Oceanic Steamship Co. The letter is addressed to Captain Goodman and reads as follows:
The procedure as outlined in the attachment to your memo would seem to cover, adequately, requirements for any necessary notification/investigation prior to granting of waivers.
The next letter is from the States Steamship Line and is signed by Mr. R. G. Jubitz, vice president. The letter is dated December 16, 1963, and their only suggestion was as follows:
The only suggestion we have is that we feel it would be more equitable if the reasonable period for notice to arrange freight was increased from 30 to 45 days.
Next is a letter from Alcoa Steamship Co. signed by W. L. Hamm and he stated as follows:
We do not have any comments, but we do appreciate and thank you for the opportunity to make comments in advance of publication.
The next letter is from the vice president of Moore-McCormack Lines who is Mr. D. B. Geddes. The letter is dated December 16 and is addressed to Captain Goodman. Mr. Geddes said:
We have studied this draft carefully and can advise you that Moore-McCormack Lines, Inc., is in complete accord with the procedures outlined therein.
May we thank you for your continued efforts on behalf of the Americanflag shipping industry.
This letter is from Mr. H. B. Luckett, vice president of American President Lines. The letter is dated December 17 and is addressed to Captain Goodman. The letter reads, as follows:
We are in full accord with the wording and intent of this notice. Its implementation and enforcement should assure maximum participation by American carriers in the movement of grains and allied products to Soviet-bloc countries and, at the same time, not prove unduly restrictive to the movement in general.
We have no constructive suggestions relative to the procedures outlined.
Next we have a telegram from the United States Lines Co. which reads, as follows:
Reference your letter December 11 our opinion your proposed draft of notice to operators and American shipowners on shipment of wheat and wheat flour to Soviet-bloc countries will adequately protect our interests.
There is also a telegram from the American Mail Line Ltd., reading as follows:
Reference your letter December 11, enclosing proposed draft notice to exporters and American shipowners on shipment of wheat and wheat flour to Soviet-bloc countries, we have no comments or suggestions to offer as outlined procedures appear adequate.
The next letter is from the States Marine-Isthmian and is signed by E. A. Terres, vice president. The letter is dated December 17 and is addressed to Captain Goodman. Mr. Terres stated :
The proposed draft seems to contain all the safeguards that would be required to protect U.S.-flag carriers.
The next letter is from the Bloomfield Steamship Co. and is signed by Wiley R. George, president. The letter is dated December 17 and is addressed to Captain Goodman.
Mr. George states:
The proposed notice is clear and understandable and announces a practical procedure to support the Government's policy relative to the participation of U.S.flag ships in these movements, and should be sent to all interested parties.
This letter is from Farrell Lines and is signed by the vice president, John C. Gorman. The letter is dated December 18 and is addressed to Mr. Goodman.
We believe that your proposed draft advising of the procedures to be followed meets the situation. We concur.
The next letter is from Mr. Joseph G. Barkan of the Prudential Lines. The letter is dated December and is addressed to Mr. Goodman.
Mr. Barkan stated :
We are of the opinion that the proposed system outlined in your attachment clearly sets forth the procedures to be followed.
Those, ladies and gentlemen, are the responses that we received generally from representatives of shipping companies and shipping associations.
We also received some responses and reaction from grain exporters. I will summarize all of these by simply saying that the grain exporters as a group did not have any specific suggestions to make about the procedures. They did point out, however, that the specific requirement was going to make it difficult for them to negotiate sales and there are these few
specific suggestions. From Drayfus Co., the 30-day provision subject to different interpretations, they suggest we clarify that. They say the procedures may be workable provided guidelines include ceilings on demurrage rates.
We believe the rules are workable if certain points are clarified or stipuated, including limitation, ship availability 45 to 50 days after solicitation.
That is within a specified period of time and Cargill suggested 45 days as the very maximum. It is rather strange that we have a grain exporter apparently “in collusion” with the shipping industry. STATEMENT OF EARL SHEPARD, VICE PRESIDENT, ATLANTIC
COAST, SEAFARERS INTERNATIONAL UNION Mr. SHEPARD. For clarification would you let us know—we came in a little bit late—would you tell us what these communications are about and the date they stem from?
Mr. GILES. I am citing responses to our notice to the proposed waiver of procedure. All these communications were received in December.
Mr. SHEPARD. These are all dated in December?
Mr. GILEs. I am sorry, we have got to move along. We will clarify this before you leave.
Mr. Tennant will you be available to assist him in clarification on this?
I am simply putting out our waiver procedure-in December it was adopted officially—I am simply putting this forward to answer some questions ve about our waiver procedure.
Mr. SHEPARD. You answered the question. It was December 7, I believe?
Mr. GILES. It was December 11.
All right, Continental Grain Co. made no specific suggestions on waiver procedure. They did make some comments on the require. ments about the 50 percent U.S.-flag shipment as being an obstacle in trying to make sales.
It was against that background, gentlemen, on January 7 that we issued our final notice of procedure.
I believe that is now in the record.
The only substantial sale, the only sale to the Soviet Union in which this agency has been involved has been the sale of the Continental Grain Co. You are familiar with that, the amount of the sale and the developments for the past month or month and a half.
We had a great deal of discussion about various points. Initially we put out only our waiver of procedure and then we put out our guideline rates, per ton rates. We did not specify any terms or conditions that enter in a charter such as, insurance, loading and unloading, overtime and all the many points that could come up. We suggested both to exporters and shipowners that as those matters came up, we hoped they would be able to resolve them between themselves and we would not have to pass on those points, at least no more than absolutely necessary.
By January 17 there were many items in controversy between Continental Grain Co. and shipowners. On that date we published terms and conditions for tender for solicitation of U.S.-flag vessels for shipping wheat as related to the Continental shipments. That is generally known and has been made available to the press and shipowners previously.
I would like to put that in the record because it is involved in this specific case.
Charterers will entertain offers at rates not in excess of those published by Marad for vessels in the 13,600 to 30,000 DWT for cargo class. Vessels not exceeding 32 foot draft on arrival are preferred; but appropriate consideration will be given to larger vessels and vessels exceeding 32 foot draft. The terms and conditions applicable thereto are attached.
Commodity: Wheat in bulk.
Loading port: One/two safe berths, one safe port U.S. gulf; charterers' option one/two safe berths, one safe port United States north of Hatteras, Albany and New York excluded.
Discharging port/s: One, option two safe U.S.S.R. Black Sea ports (Odessa/ Iljichevsk counting as one port).
Rate of loading : 6 WWSHEX NORPAC-5 WWSHEX US GULF/USNH, unless used and if used actual time to count.
Rate of discharge: Receivers to discharge cargo at the average rate of 2,000 metric tons per weather working day of 24 consecutive hours, with Sundays, official and local holidays and Saturday afternoons (unless Saturday already a holiday, in which case entire day not to count) excepted, whether used or not but actual time used to count provided vessel can deliver at such rate.
Demurrage/despatch: $1,500/$750 loading port; $2,500/$1,250 discharging port. Charterers to pay demurrage and collect despatch at loading port; at port/s of discharge receivers to pay demurrage and collect despatch.
Freight payment: Freight fully prepaid and payable in New York within 7 days after release of original onboard bills of lading to charterers in New York.
Other conditions: Shifting time between berths at loading port counting as laytime but all expenses to be for owners' account.
Tendering: Regular Baltimore form C tender clause.
Agents: Owners to appoint and pay agents at loading port; receivers' agents to be employed at discharging port/s.
Stevedores: Owners to employ charterers' stevedores at loading port at not exceeding current rates. Receivers' stevedores to be employed at discharging port/s.
Cargo to be discharged free of expense to the vessel.
If two discharging ports used, charterers to pay not exceeding 50 cents per ton of 2,240 pounds, extra on entire cargo and second discharge port option one or two safe berths, also required.
Loading range declarable by charterers on passing Malta westbound for any vessels coming from the Mediterranean. Otherwise loading range declarable 48 hours after passing lands' end.
Loading port declarable 5 days prior to vessel's expected readiness at loading port.
If two discharging ports used, vessel to be left in seaworthy trim to master's satisfaction to safely shift between discharging ports.
At discharge port time counting from 1 p.m. if notice of readiness to discharge is given before noon and at 8 a.m. next working day if notice given during office hours after noon, whether in berth or not.
In discharge, days before lays and holidays to count as three-quarters of a day. Also on Mondays and days after holidays time not to count until 8 a.m. unless used, but if used actual time used to count as laytime.
If, owing to congestion, no berth is available at time of vessel's arrival at or off the port of destination, whether in free pratique or not, time to commence to count from 1,300 hours if notice of arrival is given at or before noon of the same day and from 8 a.m. of the following day if notice given after noon, but Sundays, official and local holidays and Saturday, and time until 8 a.m. on Mondays and days following a holiday, not to count unless vessel is on demurrage and time from declaration by receivers that the berth is available until vessel's arrival in the berth not to count.
If two discharge ports are used, time at second port of discharge to commence next working period after arrival, whether in berth or not.
At each port of discharge, vessel to proceed at her own expense and at her time to one or two berths at receivers' option, time used in shifting to count as laytime.
Lighterage and/or lightening, if any at port or ports of discharge, to be for receivers' risk and expense and time used to count as laytime.
Fitting, loading, and trimming for account of the vessel. Any bags and/or bagging required for safe stowage is for account of the vessel. Time used in bagging not to count as laytime. Opening of bags at port of discharge shall be for account of the vessel and time used not to count as laytime.
Deep tanks: Wheat may only be loaded in deep tanks provided same clean and passed and freely accessible for grab discharge.
Vessel to furnish free of risk and expense to the receivers, winches, gins, falls, and slings at all hatches, as on board, and power at any times when required. Vessel is to supply sufficient lights for nightwork on deck and in the holds if required. Any time lost through breakdown of winches not to count as laytime.
Initial opening and final closing of hatches at loading and discharging port is for account of the vessel.
Overtime is for account of party ordering same. Officers and crew overtime always for account of the vessel.
At discharging ports any assessments, including dues and taxes, against the cargo shall not be for account of the vessel.
The dismantling of grain fittings for the safe and proper discharge of the cargo to be for account of the vessel, also reerection of the fittings if required by vessel, to be for vessel's account.
Any tankers employed shall guarantee to be able to discharge at not less than 1,500 metric tons at Black Sea ports and not less than 1,000 metric tons at Nakhodka with own equipment. Vessel to be responsible for the maintenance and operation of vac-u-vators and pipes in position. All shore labor to be for receiver's account.
Receivers, however, shall be required to accept delivery in excess of the above daily amount without their consent.
All customary loading and discharging tanker terms are to be considered contained herein, including contamination clauses if previous voyage oil.