Voluntary Intermodal Sealift Agreement; Extension and Modification, 83941-83949 [2024-23974]

Download as PDF Federal Register / Vol. 89, No. 202 / Friday, October 18, 2024 / Notices Importance of Clear Communications and Compliance with Applicable Rules and Procedures during the additional safety briefings. FRA considers this Safety Advisory responsive to NTSB Safety Recommendation R–23–23 3 and FRA encourages all railroad industry members to take actions consistent with the recommendations of this Advisory. FRA may modify this Safety Advisory, issue additional safety advisories, or take other appropriate action necessary to ensure the highest level of safety on the Nation’s railroads, including pursuing other corrective measures under its rail safety authority. Issued in Washington, DC. John Karl Alexy, Associate Administrator for Railroad Safety, Chief Safety Officer. [FR Doc. 2024–24118 Filed 10–17–24; 8:45 am] BILLING CODE 4910–06–P DEPARTMENT OF TRANSPORTATION Maritime Administration Voluntary Intermodal Sealift Agreement; Extension and Modification Maritime Administration, Department of Transportation. ACTION: Notice. AGENCY: The Maritime Administration (MARAD) announces the extension of the Voluntary Intermodal Sealift Agreement (VISA) until October 1, 2029, pursuant to Section 708 of the Defense Production Act of 1950, as amended. VISA is intended to make intermodal shipping services/systems, including ships, ships’ space, intermodal facilities and equipment, and related management services, available to the Department of Defense (DoD) as required to support the emergency deployment and sustainment of U.S. Armed Forces through cooperation among the maritime industry, the Department of Transportation (DOT), and DoD. In addition to extending VISA for an additional 5 years for existing participants, MARAD is modifying VISA for new applicants by making certain modifications to the Agreement, including clarification of what is meant by shipping services/systems, and the required vessel certifications for khammond on DSKJM1Z7X2PROD with NOTICES SUMMARY: 3 NTSB Safety Recommendation R–23–23 recommends that FRA ‘‘[i]ssue a safety alert to railroads regarding the importance of establishing roadway maintenance machine standoff distances that take into account the ability of an operator to see a worker or object in the track gauge behind a roadway maintenance machine.’’ VerDate Sep<11>2014 16:48 Oct 17, 2024 Jkt 265001 program entry. MARAD has also updated references to authorities and statutory and regulatory citations. DATES: This agreement will be effective on October 1, 2024, superseding the existing VISA agreement, as published in the Federal Register on October 29, 2014 (79 FR 64462–70) and renewed on September 30, 2019 (84 FR 51710–11). FOR FURTHER INFORMATION CONTACT: David J. Hatcher, Office of Sealift Support, Room W25–310, Maritime Administration, 1200 New Jersey Avenue SE, Washington, DC 20590, (202) 366–0688, Fax (202) 366–5904. SUPPLEMENTARY INFORMATION: Section 708 of the Defense Production Act of 1950, as amended (50 U.S.C. 4558) (DPA Sec. 708), authorizes the President to consult with representatives of industry, business, finance, agriculture, labor, and other interests to establish voluntary emergency preparedness agreements, following a finding that conditions exist which may pose a direct threat to the national defense or its preparedness programs. It further authorizes the President to delegate that authority to individuals who are appointed by and with the advice and consent of the Senate, upon the condition that such individuals obtain the prior approval of the Attorney General after the Attorney General’s consultation with the Federal Trade Commission (FTC). Section 401 of Executive Order (E.O.) 13603 (Mar. 16, 2012) delegated this authority of the President to the Secretary of Transportation (SecTrans), among others. In accordance with 49 CFR 1.93(l), SecTrans delegated VISA’s sponsorship authority to the Maritime Administrator, in consultation and coordination with the DOT’s Office of Intelligence, Security and Emergency Response. Through advance arrangements in joint planning, VISA participants will provide capacity to support a significant portion of surge and sustainment requirements in the deployment of U.S. military forces during a time of war or national emergency, or whenever the Secretary of Defense (or delegate) determines that it is necessary for national security or contingency operations. The text of VISA was first published in the Federal Register on February 13, 1997, effective for an initial two-year term expiring on February 13, 1999 (62 FR 6838–46). The VISA document had been extended and subsequently published in the Federal Register every two years. Effective September 30, 2009, Congress amended DPA Sec. 708 to note that each voluntary agreement expires five (5) years after the date it becomes effective. MARAD updated the VISA PO 00000 Frm 00116 Fmt 4703 Sfmt 4703 83941 agreement language most recently in 2014, as published in the Federal Register on October 29, 2014 (79 FR 64462–70), and extended the effective period of that language by five years until October 1, 2024, by notice in the Federal Register on September 30, 2019 (84 FR 51710–11). The agreement published in this notice incorporates, among other changes: (1) updates to vessel eligibility requirements, as first published in the Federal Register on January 31, 2018 (83 FR 4552–54); (2) changes to the requirements for coastwise trading waivers under 46 U.S.C. 501, pursuant to statutory amendments enacted in 2021 and 2022; (3) clarifications of certain definitions and obligations on VISA stakeholders; and (4) certain non-substantive clerical updates. In accordance with DPA Sec. 708(f)(2), the Maritime Administrator continues to find that VISA is necessary to respond to direct threats to the national defense or its preparedness programs, and sought a concurrent finding from the Assistant Attorney General for the Antitrust Division, Department of Justice (whose authority has been delegated from the Attorney General in accordance with 28 CFR 0.40(l)), in consultation with the Chair of the Federal Trade Commission, that the objectives of VISA may not be reasonably achieved through either a voluntary plan having fewer anticompetitive effects or the absence of such a voluntary agreement or plan of action. By notice in the Federal Register on October 2, 2024 (89 FR 80264–65), the Assistant Attorney General for the Antitrust Division, Department of Justice, in consultation with the Chair of the Federal Trade Commission, made such a concurrent finding on September 26, 2024. Therefore, in accordance with DPA Sec. 708(f)(2), VISA may be extended for another five-year term. The text published herein supersedes the 2014 language, as renewed in 2019, for an effective period of five years, ending October 1, 2029. Copies of this agreement will be made available to the public upon request. Voluntary Intermodal Sealift Agreement (VISA) Table of Contents Definitions Preface I. Purpose II. Authorities A. MARAD B. USTRANSCOM III. General A. Concept B. Responsibilities E:\FR\FM\18OCN1.SGM 18OCN1 83942 Federal Register / Vol. 89, No. 202 / Friday, October 18, 2024 / Notices C. Termination of Charter, Leases and Other Contractual Arrangements D. Modification/Amendment of This Agreement E. Administrative Expenses F. Record Keeping G. MARAD Reporting Requirements IV. Joint Planning Advisory Group (JPAG) V. Activation of VISA Contingency Provisions A. General B. Notification of Activation C. Voluntary Capacity D. Stage I E. Stage II F. Stage III G. Partial Activation VI. Participant Terms and Conditions A. Participation B. Agreement of Participant C. Effective Date and Duration of Agreement D. Participant Termination of VISA E. Carrier Coordination Agreements F. Vessel Qualifications G. Enrollment of Intermodal Capacity— Vessels, Facilities, and Equipment H. War Risk Insurance I. Antitrust Defense J. Breach of Contract Defense K. Vessel Sharing Agreements VII. Application and Agreement khammond on DSKJM1Z7X2PROD with NOTICES Abbreviations CCA—Carrier Coordination Agreement CFR—Code of Federal Regulations CONOPS—Concept of Operations DoD—United States Department of Defense DOJ—United States Department of Justice DOT—United States Department of Transportation DPA—Defense Production Act of 1950, as amended (50 U.S.C. Chapter 55) E.O.–Executive Order FEMA—Federal Emergency Management Agency FMC—Federal Maritime Commission FOIA—Freedom of Information Act (5 U.S.C. 552) FTC—Federal Trade Commission JCS—Joint Chiefs of Staff JPAG—Joint Planning Advisory Group MARAD—Maritime Administration MSP—Maritime Security Program (46 U.S.C. 53101–11) SecDef—United States Secretary of Defense SecTrans—United States Secretary of Transportation U.S.C.—United States Code USCG—United States Coast Guard USTRANSCOM—United States Transportation Command, inclusive of its military service component commands Air Mobility Command, Military Sealift Command, and Military Surface Deployment and Distribution Command, and its subordinate command Joint Enabling Capabilities Command VISA—Voluntary Intermodal Sealift Agreement VSA—Vessel Sharing Agreement Definitions For purposes of this Agreement, the following definitions apply: VerDate Sep<11>2014 16:48 Oct 17, 2024 Jkt 265001 Administrator—Maritime Administrator, unless otherwise stipulated. Agreement—Agreement (proper noun) refers to VISA. Attorney General—Attorney General of the United States. Broker—A person who arranges for transportation of cargo for a fee. Carrier Coordination Agreement (CCA)—An agreement between two or more Participants or between Participant and non-Participant carriers to coordinate their services in a Contingency, including agreements to: (1) charter vessels or portions of the cargo-carrying capacity of vessels; (2) share cargo handling equipment, chassis, containers and ancillary transportation equipment; (3) share wharves, warehouse, marshaling yards and other marine terminal facilities; and (4) coordinate the movement of vessels. Charter—Any agreement or commitment by which the possession or services of a vessel are secured for a period, or for one or more voyages, whether or not by a demise of the vessel. Combatant Commander—Any of the military officers defined under 10 U.S.C. 164. Commander—Combatant Commander, USTRANSCOM, unless otherwise stipulated. Commercial—Transportation service provided for profit by privately owned (not government owned) vessels to a private or government shipper. The type of service may be either common carrier or contract carriage. Contingency—A military operation that is either designated by the Secretary of Defense as a contingency operation or becomes a contingency operation as a matter of law, in accordance with 10 U.S.C. 101(a)(13). Contract carrier—A for-hire carrier who does not hold out regular service to the general public, but instead contracts, for agreed compensation, with a particular shipper for the carriage of cargo in all or a particular part of a ship for a specified period of time or on a specified voyage or voyages. Controlling interest—More than a 50-percent interest by stock ownership. Dry cargo—Includes (1) any non-liquid good or commodity and (2) liquids shipped in pre-packaged containers (such as bottled drinking water). It does not include any bulk liquid cargo shipped directly in the holds of vessels. Foreign-flag vessel—A vessel registered or documented under the laws of a country other than the United States of America. Intermodal equipment—Containers (including specialized equipment), chassis, trailers, tractors, cranes, and other materiel handling equipment, as well as other ancillary items. Management services—Management expertise and experience, intermodal terminal management, information resources, and control and tracking systems. Military Services—Includes the armed services identified in 10 U.S.C. 101(a)(4): United States Army, United States Navy, United States Air Force, United States PO 00000 Frm 00117 Fmt 4703 Sfmt 4703 Marine Corps, United States Space Force, and United States Coast Guard. Ocean common carrier—In accordance with 46 U.S.C. 40102, an entity holding itself out to the general public to provide transportation by water of passengers or cargo for compensation that (1) assumes responsibility for transportation from port or point of receipt to port or point of destination, and (2) operates and utilizes a vessel operating on the high seas for all or part of that transportation. Operator—An ocean common carrier or contract carrier that owns or controls or manages vessels by which ocean transportation is provided. Organic sealift—For the purposes of this Agreement, ships considered to be under government control or long-term charter, including Fast Sealift Ships, Ready Reserve Force vessels and commercial ships under long-term charter to DoD. Participant—A vessel operator that (1) successfully applies to join VISA, in accordance with Section VII of this document, and (2) enters into a USTRANSCOM VISA Contingency Contract. This may be augmented under the terms of Section VI(A) of this document. Person—Includes individuals and corporations, partnerships, and associations existing under or authorized by the laws of the United States or any state, territory, district, or possession thereof, or of a foreign country. Service contract—As defined in 46 U.S.C. 40102(21), a contract between a shipper (or a shipper’s association) and an ocean common carrier (or conference) in which the shipper makes a commitment to provide a certain minimum quantity of cargo or freight revenue over a fixed time period, and the ocean common carrier or conference commits to a certain rate or rate schedule, as well as a defined service level (such as assured space, transit time, port rotation, or similar service features). The contract may also specify provisions in the event of nonperformance on the part of either party. Standby—The interval between the effective date of a Participant’s acceptance into VISA and the activation of any stage, and the periods between deactivation of all stages and any later activation of any stage. U.S.-flag Vessel—A commercial vessel registered or documented under the laws of the United States of America in accordance with 46 U.S.C. Chapter 121 and any associated regulations and instructions promulgated by USCG. USTRANSCOM VISA Contingency Contract—The contract between a signatory party to VISA and USTRANSCOM establishing the minimum terms and conditions for VISA capacity activation. Attachment I of the contract is executed and signed by MSC, MARAD, USTRANSCOM and the individual carrier to enroll that carrier’s vessel capacity into VISA Stages I, II and III. Vessel Sharing Agreement (VSA) Capacity— Space chartered to a Participant for carriage of cargo, under its commercial contracts, service contracts or in common E:\FR\FM\18OCN1.SGM 18OCN1 Federal Register / Vol. 89, No. 202 / Friday, October 18, 2024 / Notices khammond on DSKJM1Z7X2PROD with NOTICES carriage, aboard vessels shared with another carrier or carriers pursuant to a commercial vessel sharing agreement under which the carriers may compete with each other for the carriage of cargo. In U.S. foreign trades the agreement is filed with the Federal Maritime Commission (FMC) in conformity with the Shipping Act of 1984 and implementing regulations. Volunteer—Any vessel owner or operator who is an ocean carrier and who offers to make capacity, resources, or systems available to support contingency requirements. Preface The Administrator, pursuant to the authority contained in Section 708 of the Defense Production Act of 1950, as amended (50 U.S.C. 4558), in cooperation with DoD, developed the Voluntary Intermodal Sealift Agreement (VISA) to provide DoD with assured access to the commercial sealift and intermodal shipping services/systems necessary to meet wartime, national emergency, national security, or contingency operation requirements. United States Transportation Command (USTRANSCOM) procures commercial shipping capacity to meet requirements for ships and intermodal shipping services/systems through arrangements with common carriers, with contract carriers and by charter. DoD (through USTRANSCOM) and DOT (through MARAD) maintain and operate a fleet of ships owned by or under charter to the Federal Government to meet the logistics needs of the Military Services and Combatant Commanders that cannot be met by existing commercial service. Governmentcontrolled ships are selectively activated for peacetime military tests and exercises, and to satisfy military operational requirements that cannot be met by commercial shipping in time of war, national emergency, or military contingency. Foreign-flag shipping is used in accordance with applicable laws, regulations, and policies. VISA has been established to provide DoD with a coordinated, seamless transition from peacetime to armed conflict for the acquisition of commercial sealift and intermodal capability to augment DoD’s organic sealift capabilities. This Agreement establishes the terms, conditions, and general procedures by which persons or parties may become VISA Participants. Through advance joint planning among USTRANSCOM, MARAD and the Participants, Participants may provide predetermined capacity in designated stages to support DoD Contingency requirements. During contingencies, Participants are afforded maximum flexibility to adjust commercial VerDate Sep<11>2014 16:48 Oct 17, 2024 Jkt 265001 83943 operations by Carrier Coordination Agreements (CCAs), in accordance with applicable law. Participants will be afforded the first opportunity to meet DoD peacetime and Contingency sealift requirements within applicable law and regulations, to the extent that the Government’s operational requirements are met. In the event VISA Participants are unable to fully meet Contingency requirements, the shipping capacity made available under VISA may be supplemented by ships/capacity from non-Participants in accordance with applicable law and by ships requisitioned under 46 U.S.C. 56301. In addition, containers and chassis made available under VISA may be supplemented by services and equipment acquired by USTRANSCOM or accessed by the Administrator. container/bulk, container/roll-on/rolloff, roll-on/roll-off (of all varieties), multi-purpose/heavy lift, breakbulk ships, and tug and barge combinations. E. 46 U.S.C. 53107 directs SecTrans to establish an Emergency Preparedness Agreement in conjunction with SecDef, as part of the Maritime Security Program (MSP), that requires MSP participants to make their commercial transportation resources (including services) available to SecDef during times of armed conflict, national emergency, or whenever SecDef determines that such resources are necessary for national security or Contingency operations. VISA is the designated Emergency Preparedness Agreement for MSP, and participation in VISA fulfills the requirements of 46 U.S.C. 53107 on MSP participants. I. Purpose A. The Administrator has determined, in accordance with DPA Section 708(c)(1), that conditions exist that may pose a direct threat to the national defense of the United States or its preparedness programs and, under the provisions of Section 708, has certified to the Attorney General that an emergency preparedness agreement for utilization of U.S.-flag commercial vessels and intermodal shipping services/systems is necessary for the national defense. The Attorney General, in consultation with the FTC Chair, has issued a finding that dry cargo shipping capacity to meet national defense requirements cannot be provided by the industry through a voluntary agreement having less anticompetitive effects or without a voluntary agreement. B. VISA provides a responsive transition from peace to contingency operations through pre-coordinated agreements for sealift capacity to support DoD contingency requirements and establishes procedures for the commitment of intermodal shipping services/systems to satisfy such requirements. VISA will change from standby to active status upon activation by appropriate authority of any of the stages described in Section V. C. VISA promotes and facilitates DoD’s use of existing commercial transportation resources and integrated intermodal transportation systems, in a manner which minimizes disruption to commercial operations, whenever possible. D. Participants’ capacity which may be committed pursuant to this Agreement may include all intermodal shipping services/systems/facilities and all ship types, including container, geared container, partial container, II. Authorities PO 00000 Frm 00118 Fmt 4703 Sfmt 4703 A. Department of Transportation and MARAD 1. DPA Section 708, as amended (50 U.S.C. 4558); E.O. 13603; E.O. 12656; 49 CFR 1.93(l); 49 CFR 1.81(a)(10). 2. Section 401 of E.O. 13603 delegated the authority of the President under Section 708 to SecTrans, among others. By 49 CFR 1.93(l), in consultation and coordination with DOT’s Office of Intelligence, Security and Emergency Response, SecTrans delegated to the Administrator the authority under which VISA is sponsored. 3. 46 U.S.C. 53107. 4. 46 U.S.C. 501(b). B. Department of Defense and USTRANSCOM 1. 10 U.S.C. 113, 161–69. 2. Unified Command Plan, designating the Commander as the DoD Single Manager for Transportation, including ‘‘[p]roviding common-user and commercial transportation, terminal management, and aerial refueling.’’ 3. DoD Directive (DoDD) 4500.09, Transportation and Traffic Management, designating the Commander as the DoD single manager for transportation for other than Service-unique or theaterassigned assets and provide commonuser and commercial air, land, and sea transportation and delegating functions to serve as the DoD representative for Maritime Security Fleet actions that SecDef is authorized to take under 46 U.S.C. Ch. 531. 4. DoD Instruction 4500.57, which further designates the Commander as the DoD authority to request MARAD activation of Ready Reserve Force (RRF) vessels pursuant to 46 U.S.C. 57100, which may be used for contingency operations, exercises, training and E:\FR\FM\18OCN1.SGM 18OCN1 83944 Federal Register / Vol. 89, No. 202 / Friday, October 18, 2024 / Notices testing, and other defense purposes for which scheduled or chartered commercial sealift assets are not available or suitable. khammond on DSKJM1Z7X2PROD with NOTICES III. General A. Concept 1. VISA provides for the staged, timephased availability of Participants’ shipping services/systems to meet SecDef-directed DoD Contingency requirements in the most demanding defense-oriented sealift emergencies and for less demanding defense-oriented situations through pre-negotiated Contingency contracts between the government and Participants. Such arrangements will be jointly planned among MARAD, USTRANSCOM, and Participants in peacetime to allow for effective, efficient, and best valued use of commercial sealift capacity, provide DoD assured access, and minimize commercial disruption, whenever possible. a. Stages I and II provide for prenegotiated contingency contracts between USTRANSCOM and Participants to provide sealift capacity against all projected DoD Contingency requirements. These agreements will be executed in accordance with approved DoD contracting methodologies. b. Stage III will provide for additional capacity to DoD when Stages I and II commitments or volunteered capacity are insufficient to meet Contingency requirements, and adequate shipping services from non-participants are not available through established DoD contracting practices or U.S. Government treaty agreements. 2. Activation will be in accordance with procedures outlined in Section V of this Agreement. 3. Following is the prioritized order for utilization of commercial sealift capacity to meet DoD peacetime and Contingency requirements: a. U.S.-flag vessel capacity operated by a Participant and U.S.-flag VSA capacity of a Participant. b. U.S.-flag vessel capacity operated by a non-Participant. c. Combination U.S./foreign-flag vessel capacity operated by a Participant and combination U.S./foreign-flag VSA capacity of a Participant. d. Combination U.S./foreign-flag vessel capacity operated by a nonParticipant. e. U.S. owned or operated foreign-flag vessel capacity and VSA capacity of a Participant. f. U.S. owned or operated foreign-flag vessel capacity and VSA capacity of a non-Participant. g. Foreign-owned or operated foreignflag vessel capacity of a non-Participant. VerDate Sep<11>2014 16:48 Oct 17, 2024 Jkt 265001 4. Under Section VI.F. of this Agreement, Participants may implement CCAs to fulfill their contractual commitments to meet VISA requirements. B. Responsibilities 1. SecDef, through USTRANSCOM, will: a. Define time-phased requirements for Contingency sealift capacity and resources required in Stages I, II, and III to augment DoD sealift resources. b. Keep MARAD and Participants apprised of Contingency sealift capacity required and resources committed to Stages I and II. c. Obtain Contingency sealift capacity through the implementation of specific pre-negotiated USTRANSCOM Contingency contracts with Participants. d. Notify the Administrator upon activation of any stage of VISA. e. Co-chair (with MARAD) the Joint Planning Advisory Group (JPAG) (see section IV). f. Establish procedures, in accordance with applicable law and regulation, providing Participants with necessary determinations for use of foreign-flag vessels to replace an equivalent U.S.flag capacity to transport a Participant’s normal peacetime DoD cargo, when Participant’s U.S.-flag assets are removed from regular service to meet VISA Contingency requirements. g. Provide a reasonable time to permit an orderly return of a Participant’s vessel(s) to its regular schedule and termination of its foreign-flag capacity arrangements as determined through coordination between USTRANSCOM and the Participants. h. Review and endorse Participants’ requests to MARAD for use of foreignflag replacement capacity for non-DoD government cargo, when U.S.-flag capacity is required to meet Contingency requirements. 2. SecTrans, through MARAD, will: a. Review the amount of sealift resources committed under USTRANSCOM contracts to Stages I and II and notify USTRANSCOM if a particular level of VISA commitment will have serious adverse impact on the U.S.-flag Merchant Marine’s ability to provide essential maritime transportation and intermodal shipping services. MARAD’s analysis will be based on the consideration that all VISA Stage I and II capacity committed will be activated. This notification will occur on an as required basis upon the Commander’s acceptance of VISA commitments from the Participants. If advised by MARAD, USTRANSCOM will adjust the size of the stages or provide MARAD with justification for PO 00000 Frm 00119 Fmt 4703 Sfmt 4703 maintaining the size of those stages. USTRANSCOM and MARAD will coordinate to ensure that the volume of sealift assets committed to Stages I and II will not have an adverse national economic impact. b. Coordinate with DOJ for the expedited approval of CCAs. c. Upon request by the Commander and approval by SecDef to activate Stage III, allocate sealift capacity and intermodal assets to meet DoD Contingency requirements. DoD will have priority consideration in any allocation situation. d. Establish procedures, pursuant to 46 U.S.C. 53107(f), for determinations regarding the selection, equivalency, and duration of the use of foreign-flag vessels to replace U.S.-flag vessel capacity to transport the cargo of a Participant which has entered into an operating agreement under 46 U.S.C. 53103 whose U.S.-flag vessel capacity has been removed from regular service to meet VISA contingency requirements. Such foreign-flag vessels shall be eligible to transport cargo that is subject to U.S.-flag preference cargo requirements of 10 U.S.C. 2631 (with respect to military cargo or cargo otherwise transported by DoD) and 46 U.S.C. 55302–05 (with respect to all other cargoes shipped by, or on account of, an agency of the United States Government). However, any procedures regarding the use of such foreign-flag vessels to transport cargo subject to 10 U.S.C. 2631 must have an approved waiver in accordance with 10 U.S.C. 2631 and its implementing delegations and regulations. e. Co-chair (with USTRANSCOM) the JPAG. f. Review requests by Participants to the Secretary of Homeland Security under 46 U.S.C. 501(b) to waive compliance with the coastwise transportation requirements under 46 U.S.C. 55102 if U.S. coastwise-qualified vessels are activated under VISA and make determinations of U.S. coastwisequalified vessel non-availability during a VISA activation. To the extent feasible, participants with U.S. coastwise-qualified vessels or vessel capacity will use CCAs or other arrangements to fulfill their VISA commitments to protect their ability to maintain domestic services for their commercial customers and to fulfill their commercial peacetime commitments with U.S.-flag vessels. In situations where the activation of VISA deprives a Participant of all or a portion of its U.S. coastwise-qualified vessels or vessel capacity and, at the same time, creates a general shortage of U.S. coastwise-qualified vessel(s) or vessel E:\FR\FM\18OCN1.SGM 18OCN1 Federal Register / Vol. 89, No. 202 / Friday, October 18, 2024 / Notices capacity on the domestic market, based on market surveys, Participants with coastwise-qualified tonnage may apply for vessel-specific waivers under 46 U.S.C. 501(b). The vessel(s) or vessel capacity for which such waivers are requested will be approximately equal to the U.S. coastwise-qualified vessel(s) or vessel capacity chartered or under contract to DoD. C. Termination of Charters, Leases and Other Contractual Arrangements 1. USTRANSCOM will notify the Administrator as soon as possible of the prospective termination of charters, leases, management service contracts or other contractual arrangements made by DoD under this Agreement. 2. In the event of general requisitioning of ships under 46 U.S.C. 56301, the Administrator will consider commitments made with DoD under this Agreement when selecting those vessels designated for requisition by, purchase by, or charter for the use of, the Government. D. Modification of This Agreement 1. The Attorney General may modify this Agreement, in writing, after consultation with the FTC Chair, SecTrans, through their representative MARAD, and SecDef, through their representative the Commander. Although Participants may withdraw from this Agreement pursuant to Section VI.D, they remain subject to VISA as modified until such withdrawal. 2. The Administrator, Commander, and Participants may modify this Agreement at any time by mutual agreement, but only in writing with the approval of the Attorney General and the FTC Chair. 3. Participants may propose modifications to this Agreement at any time. khammond on DSKJM1Z7X2PROD with NOTICES E. Administrative Expenses Administrative and out-of-pocket expenses incurred by a participant must be borne solely by the Participant. F. Record Keeping 1. MARAD will maintain carrier VISA application records in accordance with applicable DOT directives. Once a carrier is selected as a VISA Participant, MARAD will forward a copy of the VISA application form to USTRANSCOM. 2. In accordance with 44 CFR 332.2(c), MARAD will record JPAG meetings and make a full and verbatim transcript available for public inspection upon request, subject to FOIA exemptions under 5 U.S.C. 552(b). VerDate Sep<11>2014 16:48 Oct 17, 2024 Jkt 265001 MARAD will send this transcript, and any voluntary agreement resulting from the meeting, to the Attorney General, the FTC Chair, the FEMA Administrator, any other party or repository required by law, and to Participants upon their request. 3. USTRANSCOM will be the official custodian of records related to the Contingency contracts to be used under this Agreement, including specific information on enrollment of a Participant’s capacity in VISA. 4. In accordance with 44 CFR 332.3(d), a Participant must maintain for five (5) years all minutes of meetings, transcripts, records, documents, and other data, including any communications with other Participants or with any other member of the industry or their representatives, related to the administration of VISA, including planning related to and implementation of Stage activations of this Agreement. Each Participant agrees to make such records available to the Administrator, the Commander, the Attorney General, and the FTC Chair for inspection and copying at reasonable times and upon reasonable notice. Any record maintained by MARAD or USTRANSCOM pursuant to paragraphs 1, 2, or 3 of this subsection must be available for public inspection and copying unless exempted under FOIA on the grounds specified in 5 U.S.C. 552(b)(1), (b)(3), or (b)(4), in accordance with DPA Section 708 and implementing regulations at 44 CFR part 332.5. G. MARAD Reporting Requirements MARAD will report to the FEMA Administrator, as required, on the status and use of this Agreement. IV. Joint Planning Advisory Group (JPAG) A. The Joint Planning Advisory Group (JPAG) provides USTRANSCOM, MARAD and VISA Participants a planning forum to: 1. Analyze DoD Contingency sealift/ intermodal service and resource requirements. 2. Identify commercial sealift capacity that may be used to meet DoD requirements, related to Contingencies and, as requested by USTRANSCOM, exercises and special movements. 3. Develop and recommend CONOPS to meet DoD-approved Contingency requirements and, as requested by USTRANSCOM, exercises and special movements. B. JPAG will be co-chaired by MARAD and USTRANSCOM and will convene as jointly determined by the cochairs. PO 00000 Frm 00120 Fmt 4703 Sfmt 4703 83945 C. JPAG will consist of designated representatives from MARAD, USTRANSCOM, each Participant, and maritime labor. Other attendees may be invited at the discretion of the co-chairs as necessary to meet JPAG requirements. Representatives will provide technical advice and support to ensure maximum coordination, efficiency, and effectiveness in the use of Participants’ resources. All Participants will be invited to all open JPAG meetings. For selected JPAG meetings, attendance may be limited to designated Participants to meet specific operational requirements. 1. The co-chairs may establish working groups within JPAG. Participants may be assigned to working groups as necessary to develop specific CONOPS. 2. Each working group will be cochaired by representatives designated by MARAD and USTRANSCOM. D. JPAG will not be used for contract negotiations and/or contract discussions between carriers and DoD; such negotiations and/or discussions will be in accordance with applicable DoD contracting policies and procedures. E. The JPAG co-chairs will: 1. Notify the Attorney General, the FTC Chair, Participants, and the maritime labor representative of the time, place, and nature of each JPAG meeting. 2. Provide for publication in the Federal Register of a notice of the time, place, and nature of each JPAG meeting. If the meeting is open, a Federal Register notice will be published reasonably in advance of the meeting. If a meeting is closed, a Federal Register notice will be published within ten (10) days after the meeting and will include the reasons for closing the meeting. 3. Establish the agenda for each JPAG meeting and be responsible for adherence to the agenda. 4. Provide for a full and complete transcript or other record of each meeting and provide one copy each of transcript or other record to the Attorney General, the FTC Chair, and to Participants, upon request. F. Security Measures—The co-chairs will develop and coordinate appropriate security measures so that Contingency planning information can be shared with Participants to enable them to plan their commitments. V. Activation of VISA Contingency Provisions A. General VISA may be activated at the request of SecDef as needed to support Contingency operations. Activating voluntary commitments of capacity to E:\FR\FM\18OCN1.SGM 18OCN1 83946 Federal Register / Vol. 89, No. 202 / Friday, October 18, 2024 / Notices support such operations will be in accordance with pre-negotiated Contingency contracts between USTRANSCOM and Participants. 2. Stage II will be activated by the Commander, with approval of SecDef, following the same procedures discussed in paragraph D above. B. Notification of Activation 1. The Commander will notify the Administrator of the activation of Stages I, II, and III. 2. The Administrator will notify the Attorney General and the FTC Chair when it has been determined by DoD that activation of any Stage of VISA is necessary to meet DoD Contingency requirements. F. Stage III C. Voluntary Capacity 1. Throughout the activation of any Stages of this Agreement, DoD may utilize voluntary commitment of sealift capacity or systems. 2. Requests for volunteer capacity will be extended simultaneously to both Participants and other carriers. First priority for utilization will be given to Participants who have signed Stage I and/or II USTRANSCOM Contingency contracts and are capable of meeting the operational requirements. Participants providing voluntary capacity may request USTRANSCOM to activate their pre-negotiated Contingency contracts; to the maximum extent possible, USTRANSCOM, where appropriate, will support such requests. Volunteered capacity will be credited against Participants’ staged commitments, in the event such stages are subsequently activated. 3. In the event Participants are unable to fully meet Contingency requirements, or do not voluntarily offer to provide the required capacity, the shipping capacity made available under VISA may be supplemented by ships/capacity from non-Participants. 4. When voluntary capacity does not meet DoD Contingency requirements, DoD will activate the VISA stages as necessary. khammond on DSKJM1Z7X2PROD with NOTICES D. Stage I 1. Stage I will be activated in whole or in part by the Commander, with approval of SecDef, when voluntary capacity commitments are insufficient to meet DoD Contingency requirements. The Commander will notify the Administrator upon activation. 2. USTRANSCOM will implement Stage I Contingency contracts as needed to meet operational requirements. E. Stage II 1. Stage II will be activated, in whole or in part, when Contingency requirements exceed the capability of Stage I and/or voluntarily committed resources. VerDate Sep<11>2014 16:48 Oct 17, 2024 Jkt 265001 1. Stage III will be activated, in whole or in part, when Contingency requirements exceed the capability of Stages I and II, and other shipping services are not available. This stage involves DoD use of capacity and vessels operated by Participants which will be furnished to DoD when required in accordance with this Agreement. The capacity and vessels are allocated by MARAD on behalf of SecTrans to the Commander. 2. Stage III will be activated by the Commander upon approval by SecDef. Upon activation, SecDef will request SecTrans to allocate sealift capacity based on DoD requirements, in accordance with Title 1 of DPA (50 U.S.C. 4511–18), to meet the Contingency requirement. All Participants’ capacity committed to VISA is subject to use during Stage III. 3. Upon allocation of sealift assets by SecTrans, through its designated representative MARAD, the Commander will execute Contingency contracts with Participants, using standard negotiating procedures. Until execution of such contract, the Participant agrees that the assets remain subject to the provisions 46 U.S.C. 56301. G. Partial Activation As used in this Section V, the term activation in part of any Stage under this Agreement means one of the following: 1. Activation of only a portion of the committed capacity of some, but not all, of the Participants in any Stage that is activated; or 2. Activation of the entire committed capacity of some, but not all, of the Participants in any Stage that is activated; or 3. Activation of only a portion of the entire committed capacity of all the Participants in any Stage that is activated. VI. Participant Terms and Conditions A. Participation 1. Any U.S.-flag vessel operator organized under the laws of a State or Territory of the United States, or the District of Columbia, may become a Participant in this Agreement by submitting an executed copy of the form referenced in Section VII, and by entering into a VISA Contingency Contract with USTRANSCOM, which establishes a legal obligation to perform PO 00000 Frm 00121 Fmt 4703 Sfmt 4703 and the compensation methodology for all services rendered. 2. Consideration of a Participant’s overall vessel capacity, intermodal resources, facilities and equipment includes (1) assets owned or operated by the applicant vessel operator described in VI.A.1 above, and (2) all United States subsidiaries and affiliates of the vessel operator that own, operate, control, or bareboat charter vessels and intermodal equipment in the regular course of their business and in which the vessel operator holds a controlling interest. 3. Upon request of the applicant executing the form referenced in Section VII, Participants may include their controlled non-domestic subsidiaries and affiliates as part of their capacity commitment, provided that the Administrator, in coordination with the Commander, grants specific approval for their inclusion. 4. Any vessel owner or operator receiving payments under a Maritime Security Program (MSP) Operating Agreement, in accordance with 46 U.S.C. 53106, must become a Participant with respect to all vessels enrolled in MSP at all times until the date the MSP Operating Agreement would have terminated according to its original terms. The MSP operator must be enrolled in VISA as a Stage III Participant, at a minimum. Such participation will satisfy the requirement for an MSP participant to be enrolled in an emergency preparedness program approved by SecDef as provided in 46 U.S.C. 53107. 5. A Participant is subject only to the provisions of this Agreement. 6. MARAD shall publish a list of Participants periodically in the Federal Register. B. Agreement of Participant 1. Each Participant agrees to provide commercial sealift and/or intermodal shipping services/systems in accordance with USTRANSCOM VISA Contingency contracts. USTRANSCOM will review and approve each Participant’s commitment to ensure it meets DoD Contingency requirements. A Participant’s capacity commitment to Stages I and II will be one of the considerations in determining the level of DoD peacetime contracts awarded, except for U.S. coastwise-qualified vessel capacity as discussed in paragraph 4, below. 2. USTRANSCOM may also enter into Contingency contracts, not linked to peacetime contract commitments, with Participants, as required to meet Stage I and II requirements. E:\FR\FM\18OCN1.SGM 18OCN1 khammond on DSKJM1Z7X2PROD with NOTICES Federal Register / Vol. 89, No. 202 / Friday, October 18, 2024 / Notices 3. Commitment of Participants’ resources to VISA is as follows: a. Stage III: A carrier desiring to participate in DoD peacetime contracts/ traffic must commit no less than 50% of its total U.S.-flag capacity into Stage III. Carriers receiving payments under MSP Operating Agreements will have vessels receiving such assistance enrolled in Stage III. Participants’ capacity under long-term charter to DoD will be considered organic to DoD and does not count towards the Participant’s Contingency commitment during the period of the charter. Participants whose capacity is utilized under Stage III activation will be compensated based upon the negotiated rates by the Participant and USTRANSCOM within the USTRANSCOM Contingency Contract. b. Stages I and II: DoD will annually develop and publish minimum commitment requirements for Stages I and II. Normally, the awarding of a longterm DoD contract (i.e., one year or longer), exclusive of charters, will include the annual predesignated minimum commitment to Stages I and/ or II. Participants desiring to bid on DoD peacetime contracts will be required to provide commitment levels to meet DoD-established Stage I and/or II minimums on an annual basis. Participants may gain additional consideration for peacetime contract cargo allocation awards by committing capacity to Stages I and II beyond the specified minimums. If the Participant is awarded a contract reflecting such a commitment, that commitment must become the actual amount of a Participant’s U.S.-flag capacity commitment to Stages I and II. A Participant’s Stage III U.S.-flag capacity commitment must represent its total minimum VISA commitment. That Participant’s Stage I and II capacity commitments, as well as any volunteer capacity contribution by Participant, are portions of Participant’s total VISA commitment. Participants activated during Stages I and II will be compensated in accordance with prenegotiated USTRANSCOM VISA Contingency contracts. 4. Participants exclusively operating vessels engaged in domestic trades will be required to commit 50% of that capacity to Stage III. Such Participants will not be required to commit capacity to Stages I and II as a consideration of domestic peacetime traffic and/or contract award. However, such Participants may voluntarily agree to commit capacity to Stages I and/or II. 5. The Participant owning, operating, or controlling an activated ship or ship capacity will provide intermodal VerDate Sep<11>2014 16:48 Oct 17, 2024 Jkt 265001 equipment and management services needed to utilize the ship and equipment at not less than the Participant’s normal efficiency, in accordance with the pre-negotiated USTRANSCOM VISA Contingency contracts implementing this Agreement. 6. Each Participant acknowledges and agrees to abide by all provisions of DPA Section 708, as amended, and regulations related thereto which are promulgated by SecTrans, the Attorney General, and the FTC Chair. 49 CFR part 33 establishes procedures for assigning the priority for use and the allocation of shipping services, containers, and chassis to meet emergency requirements. JPAG will inform Participants of new and amended rules and regulations as they are issued in accordance with law and administrative due process. Although Participants may withdraw from VISA, they remain subject to all of the terms of this Agreement. C. Effective Date and Duration of the Agreement 1. Participation in this Agreement is effective upon execution by MARAD of the submitted form referenced in Section VII, and approval by USTRANSCOM by execution of an USTRANSCOM VISA Contingency Contract, for Stage III, at a minimum. 2. VISA participation remains in effect until the Participant terminates the Agreement in accordance with paragraph D below, or termination of the Agreement in accordance with 44 CFR Sec. 332.4. Notwithstanding termination of VISA or participation in VISA, obligations pursuant to executed DoD peacetime contracts must remain in effect for the term of such contracts and are subject to all terms and conditions thereof. D. Participant Termination of VISA 1. Except as provided in paragraph 2 below, a Participant may terminate its participation in VISA upon written notice to the Administrator. Such termination will become effective 30 days after written notice is received, unless obligations incurred under VISA by virtue of activation of any Contingency contract cannot be fulfilled prior to the termination date, in which case the Participant must complete the performance of such obligations. Voluntary termination by a carrier of its VISA participation shall not act to terminate or otherwise mitigate any separate contractual commitment entered into with DoD. 2. A Participant having an MSP Operating Agreement with MARAD must not withdraw from this Agreement PO 00000 Frm 00122 Fmt 4703 Sfmt 4703 83947 at any time during the original term of the MSP Operating Agreement. 3. A Participant’s withdrawal, or termination of this Agreement, will not deprive a Participant of an antitrust defense otherwise available to it in accordance with DPA Section 708 for the fulfillment of obligations incurred prior to withdrawal or termination. E. Carrier Coordination Agreements (CCA) 1. When any Stage of VISA is activated or when DoD has requested volunteer capacity pursuant to Section V.B. of VISA, Participants may implement approved CCAs to meet the needs of DoD and to minimize the disruption of their services to the civil economy. 2. A CCA for which the parties seek the benefit of DPA Section 708(j) must be identified as such and be submitted to the Administrator for approval and certification in accordance with DPA Section 708(f)(1)(A). Upon approval and certification, the Administrator will transmit the Agreement to the Attorney General for a finding in accordance with DPA Section 708(f)(1)(B). Parties to approved CCAs may avail themselves of the antitrust defenses set forth in DPA Section 708(j). Nothing in VISA precludes Participants from engaging in lawful conduct (including carrier coordination activities) that lies outside the scope of an approved CCA; but antitrust defenses will not be available pursuant to DPA Section 708(j) for such conduct. 3. Participants may seek approval for CCAs at any time. F. Vessel Qualifications 1. All vessels enrolled in VISA must be capable of operating in worldwide/ intercontinental trades for dry cargoes (i.e., not tankers) and must be capable of carrying military cargoes, including hazardous cargoes, on transoceanic voyages. Participants must provide evidence of this capability for all vessels they seek to enroll by submitting USCG certificates of inspection, international load line certificates, classification society survey reports, and/or documents of compliance for the carriage of certain goods or operation in certain worldwide geographic regions, as appropriate. 2. Participants may apply to enroll either self-propelled vessels, tugs-andbarges, or both. If applying with tugsand-barges, Participants or applicants must provide MARAD satisfactory evidence that tug service of sufficient horsepower will be available for all barges proposed for enrollment in VISA, E:\FR\FM\18OCN1.SGM 18OCN1 83948 Federal Register / Vol. 89, No. 202 / Friday, October 18, 2024 / Notices and of the barges’ capacity to carry military cargoes intercontinentally. 3. If Participants offer vessels that they operate under bareboat charter, such charters must state that the vessel’s owner will not interfere with the charterer’s obligation to commit the chartered vessels to VISA for the duration of the charter. If a Participant offering tug-and-barge capacity does not own or bareboat charter sufficient tug service for the barges it owns, then it must submit time charters for the additional tugs needed to cover its barge capacity, valid through the period of its VISA enrollment. G. Enrollment of Intermodal Capacity Vessels, Facilities, and Equipment 1. Participant will prepare a list identifying the ships/capacity and intermodal facilities, connections, and equipment committed by a Participant to each Stage of VISA and submit such list to USTRANSCOM within seven calendar days after a carrier has become a Participant. USTRANSCOM will maintain a record of all such commitments. Participants will notify USTRANSCOM of any changes not later than seven days prior to the change. 2. USTRANSCOM will provide a copy of each Participant’s VISA commitment data and all changes to MARAD. 3. In accordance with DPA Section 708, as amended, and implementing regulations at 44 CFR part 332.5, any information made available to administer this agreement or plan of action must be made available for public inspection and copying subject to FOIA exemptions under 5 U.S.C. 552(b)(1), (b)(3), or (b)(4). Information which a Participant identifies as privileged or business confidential/proprietary data shall be withheld from public disclosure in accordance with DPA Sections 708(h)(3) and 705(e), or which qualifies for exemption from public disclosure under 5 U.S.C. 552(b). 4. Enrolled ships are required to comply with 46 CFR part 307, Establishment of Mandatory Position Reporting System for Vessels. khammond on DSKJM1Z7X2PROD with NOTICES H. War Risk Insurance 1. Where commercial war risk insurance is not available on reasonable terms and conditions, DOT will provide non-premium government war risk insurance, subject to the provisions of 46 U.S.C. 53905. 2. Pursuant to 46 CFR 308.1(c), the Administrator will find each ship enrolled or utilized under this Agreement eligible for U.S. Government war risk insurance. VerDate Sep<11>2014 16:48 Oct 17, 2024 Jkt 265001 I. Antitrust Defense 1. Under the provisions of DPA Section 708(j), each carrier must have available as a defense to any civil or criminal action brought under the antitrust laws of the United States, or any similar law of any State, Territory, or the District of Columbia, with respect to any action taken to develop or carry out this Agreement, that such act was taken in the course of developing or carrying out this Agreement and that the Participant complied with the provisions of DPA and any regulation thereunder, and acted in accordance with the terms of this Agreement. 2. This defense will not be available to the Participant for any action occurring after termination of this Agreement. This defense will not be available upon the modification of this Agreement with respect to any subsequent action that is beyond the scope of the modified text of this Agreement, except that no such modification will be accomplished in a way that will deprive the Participant of antitrust defense for the fulfillment of obligations incurred. 3. This defense will be available only if and to the extent that the Participant asserting it demonstrates that the action, which includes a discussion or agreement, was within the scope of this Agreement. 4. The person asserting the defense bears the burden of proof. 5. The defense will not be available if the person against whom it is asserted shows that the action was taken for the purpose of violating the antitrust laws. 6. As appropriate, the Administrator, on behalf of SecTrans, and DoD will support agreements filed by Participants with FMC that are related to the standby or Contingency implementation of VISA. J. Breach of Contract Defense Under the provisions of DPA Section 708, in any action in any Federal court or the courts of any State, Territory, or the District of Columbia for breach of contract, there will be available as a defense that the alleged breach of contract was caused predominantly by action taken by a Participant during an emergency (including action taken in imminent anticipation of an emergency) to carry out this Agreement. Such defense will not release the party asserting it from any obligation under applicable law to mitigate damages to the greatest extent possible. K. Vessel Sharing Agreements (VSA) 1. VISA allows Participants the use of a VSA to utilize non-Participant U.S.- PO 00000 Frm 00123 Fmt 4703 Sfmt 4703 flag or foreign-owned and operated foreign-flag vessel capacity as a substitute for VISA Contingency capability provided that: a. The foreign-flag capacity is utilized in accordance with 10 U.S.C. 2631, 46 U.S.C. 55302–05, and associated delegations and/or regulations. b. The use of a VSA, either currently in use or a new proposal, as a substitution to meet DoD Contingency requirements is agreed upon by USTRANSCOM and MARAD. c. The Participant carrier demonstrates adequate control over the offered VSA capacity during the period of utilization. d. Participant’s service requirements are satisfied. e. Participant is responsible to DoD for the carriage or services contracted for. Though VSA capacity may be utilized to fulfill a Contingency commitment, a Participant’s U.S.-flag VSA capacity in another Participant’s vessel will not act in a manner to increase a Participant’s capacity commitment to VISA. 2. Participants will apprise MARAD and USTRANSCOM in advance of any change in a VSA of which it is a member, if such changes reduce the availability of Participant capacity provided for in any approved and accepted Contingency Concept of Operations. 3. Participants will not act as a broker for DoD cargo unless requested by USTRANSCOM. VII. Application and Agreement The Administrator, in coordination with the Commander, has adopted the following form, titled Application to Participate in the Voluntary Intermodal Sealift Agreement, by which intermodal ship operators may apply to become a Participant in this Agreement. The form incorporates, by reference, the terms of this Agreement. United States of America, Department of Transportation, Maritime Administration Application To Participate in the Voluntary Intermodal Sealift Agreement The applicant identified below hereby applies to participate in the Maritime Administration’s agreement entitled ‘‘Voluntary Intermodal Sealift Agreement.’’ The text of said Agreement is published in llllllFederal Register llllll, llllll, l 20l. This Agreement is authorized under Section 708 of the Defense Production Act of 1950, as amended (50 U.S.C. 4558). Regulations governing this Agreement appear at 44 CFR part 332 E:\FR\FM\18OCN1.SGM 18OCN1 Federal Register / Vol. 89, No. 202 / Friday, October 18, 2024 / Notices The applicant, if selected, hereby acknowledges and agrees to the incorporation by reference into this Application and Agreement of the entire text of the Voluntary Intermodal Sealift Agreement published in llllll Federal Register llllll, llll ll, l20l, as though said text were physically recited herein. The Applicant, as a Participant, agrees to comply with the provisions of Section 708 of the Defense Production Act of 1950, as amended, the regulations of 44 CFR part 332 and the terms of the Voluntary Intermodal Sealift Agreement. Further, the applicant, if selected as a Participant, hereby agrees to contractually commit to make specifically enrolled vessels or capacity, intermodal equipment and management of intermodal transportation systems available for use by the Department of Defense and to other Participants as discussed in this Agreement and the subsequent USTRANSCOM Voluntary Intermodal Sealift Agreement Contingency Contract for the purpose of meeting national defense requirements. Attest: lllllllllllllllllll (Corporate Secretary) Effective Date: lllllllllllllllllll (Secretary) lllllllllllll (Applicant-Corporate Name) lllll (Signature) lllllllllllllllllll (Position Title) United States of America, Department of Transportation, Maritime Administration By: lllllllllllllllllll Maritime Administrator by Executive Order 13886; Organization Established Date 2011 to 2012; National ID No. 12793741 (Canada); UK Company Number 13885242 (United Kingdom) [SDGT] (Linked To: POPULAR FRONT FOR THE LIBERATION OF PALESTINE). Designated pursuant to section 1(a)(iii)(A) of E.O. 13224, as amended, for being owned, controlled, or directed by, or has acted or purported to act for or on behalf of, directly or indirectly, the POPULAR FRONT FOR THE LIBERATION OF PALESTINE, a person whose property and interests in property are blocked pursuant to E.O. 13224. Electronic Availability Privacy Act of 1974; System of Records The SDN List and additional information concerning OFAC sanctions programs are available on OFAC’s website: https://ofac.treasury.gov. DEPARTMENT OF THE TREASURY Office of Foreign Assets Control, Treasury. ACTION: Notice. AGENCY: The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) is publishing the names SUMMARY: VerDate Sep<11>2014 16:48 Oct 17, 2024 Jkt 265001 BILLING CODE 4810–AL–P DEPARTMENT OF VETERANS AFFAIRS AGENCY: Department of Veterans Affairs (VA). ACTION: Notice of a modified system of On October 15, 2024, OFAC determined that the property and interests in property subject to U.S. jurisdiction of the following persons are blocked under the relevant sanctions authorities listed below. SUMMARY: Individual Notice of OFAC Sanctions Actions BILLING CODE 4910–81–P [FR Doc. 2024–24134 Filed 10–17–24; 8:45 am] records. Entity [FR Doc. 2024–23974 Filed 10–17–24; 8:45 am] Lisa M. Palluconi, Acting Director, Office of Foreign Assets Control. Notice of OFAC Actions Office of Foreign Assets Control By Order of the Maritime Administrator. T. Mitchell Hudson, Jr., Secretary, Maritime Administration. khammond on DSKJM1Z7X2PROD with NOTICES of one or more persons that have been placed on OFAC’s Specially Designated Nationals and Blocked Persons List (SDN List) based on OFAC’s determination that one or more applicable legal criteria were satisfied. All property and interests in property subject to U.S. jurisdiction of these persons are blocked, and U.S. persons are generally prohibited from engaging in transactions with them. DATES: This action was issued on October 15, 2024. See SUPPLEMENTARY INFORMATION section for relevant dates. FOR FURTHER INFORMATION CONTACT: OFAC: Associate Director for Global Targeting, 202–622–2420; Assistant Director for Licensing, 202–622–2480; or Assistant Director for Sanctions Compliance, 202–622–2490 or https:// ofac.treasury.gov/contact-ofac. SUPPLEMENTARY INFORMATION: 1. BARAKAT, Khaled (a.k.a. ‘‘Rabah’’), Canada; DOB 01 Jun 1972; POB Ramallah, Palestinian Territories; Gender Male; Secondary sanctions risk: section 1(b) of Executive Order 13224, as amended by Executive Order 13886; Passport AG669835 (Canada) expires 25 May 2028 (individual) [SDGT] (Linked To: POPULAR FRONT FOR THE LIBERATION OF PALESTINE). Designated pursuant to section 1(a)(iii)(A) of Executive Order 13224 of September 23, 2001, ‘‘Blocking Property and Prohibiting Transactions With Persons Who Commit, Threaten to Commit, or Support Terrorism,’’ 66 FR 49079, as amended by Executive Order 13886 of September 9, 2019, ‘‘Modernizing Sanctions To Combat Terrorism,’’ 84 FR 48041 (E.O. 13224, as amended), for having acted or purported to act for or on behalf of, directly or indirectly, the POPULAR FRONT FOR THE LIBERATION OF PALESTINE, a person whose property and interests in property are blocked pursuant to E.O. 13224. (Authority: Section 708 of the Defense Production Act, as amended (50 U.S.C. 4558), 49 CFR 1.93(l), E.O. 13603, 49 CFR 1.81(a)(10), E.O. 12656) 83949 1. SAMIDOUN PALESTINIAN PRISONER SOLIDARITY NETWORK (a.k.a. LE RESEAU DE SOLIDARITE AUX PRISONNIERS PALESTINIENS SAMIDOUN; a.k.a. SAMIDOUN; a.k.a. ‘‘HIRAK’’), Vancouver, British Columbia, Canada; London, United Kingdom; Secondary sanctions risk: section 1(b) of Executive Order 13224, as amended PO 00000 Frm 00124 Fmt 4703 Sfmt 4703 Pursuant to the Privacy Act of 1974, notice is hereby given that the Department of Veterans Affairs (VA) is modifying the system of records titled, ‘‘VA Child Care Subsidy Program Records-VA’’ (165VA05CCSP). This system contains the records used by the Child Care Records Management System (CCRMS) which provides a mechanism for online application processing; subsidy benefit requests; and the tracking, filing, retrieving, and storing of documents. DATES: Comments on this modified system of records must be received no later than November 18, 2024. If no public comment is received during the period allowed for comment or unless otherwise published in the Federal Register by VA, the modified system of records will become effective a minimum of 30 days after the date of publication in the Federal Register. If VA receives public comments, VA shall review the comments to determine whether any changes to the notice are necessary. Comments concerning the modified system of records may be submitted through www.Regulations.gov or mailed to VA Privacy Service, 810 Vermont Avenue NW, (005X6F), Washington, DC 20420. Comments should indicate they are submitted in response to ‘‘VA Child Care Subsidy Program Records—VA’’ (165VA05CCSP). Comments received ADDRESSES: E:\FR\FM\18OCN1.SGM 18OCN1

Agencies

[Federal Register Volume 89, Number 202 (Friday, October 18, 2024)]
[Notices]
[Pages 83941-83949]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-23974]


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DEPARTMENT OF TRANSPORTATION

Maritime Administration


Voluntary Intermodal Sealift Agreement; Extension and 
Modification

AGENCY: Maritime Administration, Department of Transportation.

ACTION: Notice.

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SUMMARY: The Maritime Administration (MARAD) announces the extension of 
the Voluntary Intermodal Sealift Agreement (VISA) until October 1, 
2029, pursuant to Section 708 of the Defense Production Act of 1950, as 
amended. VISA is intended to make intermodal shipping services/systems, 
including ships, ships' space, intermodal facilities and equipment, and 
related management services, available to the Department of Defense 
(DoD) as required to support the emergency deployment and sustainment 
of U.S. Armed Forces through cooperation among the maritime industry, 
the Department of Transportation (DOT), and DoD. In addition to 
extending VISA for an additional 5 years for existing participants, 
MARAD is modifying VISA for new applicants by making certain 
modifications to the Agreement, including clarification of what is 
meant by shipping services/systems, and the required vessel 
certifications for program entry. MARAD has also updated references to 
authorities and statutory and regulatory citations.

DATES: This agreement will be effective on October 1, 2024, superseding 
the existing VISA agreement, as published in the Federal Register on 
October 29, 2014 (79 FR 64462-70) and renewed on September 30, 2019 (84 
FR 51710-11).

FOR FURTHER INFORMATION CONTACT: David J. Hatcher, Office of Sealift 
Support, Room W25-310, Maritime Administration, 1200 New Jersey Avenue 
SE, Washington, DC 20590, (202) 366-0688, Fax (202) 366-5904.

SUPPLEMENTARY INFORMATION: Section 708 of the Defense Production Act of 
1950, as amended (50 U.S.C. 4558) (DPA Sec. 708), authorizes the 
President to consult with representatives of industry, business, 
finance, agriculture, labor, and other interests to establish voluntary 
emergency preparedness agreements, following a finding that conditions 
exist which may pose a direct threat to the national defense or its 
preparedness programs. It further authorizes the President to delegate 
that authority to individuals who are appointed by and with the advice 
and consent of the Senate, upon the condition that such individuals 
obtain the prior approval of the Attorney General after the Attorney 
General's consultation with the Federal Trade Commission (FTC). Section 
401 of Executive Order (E.O.) 13603 (Mar. 16, 2012) delegated this 
authority of the President to the Secretary of Transportation 
(SecTrans), among others. In accordance with 49 CFR 1.93(l), SecTrans 
delegated VISA's sponsorship authority to the Maritime Administrator, 
in consultation and coordination with the DOT's Office of Intelligence, 
Security and Emergency Response. Through advance arrangements in joint 
planning, VISA participants will provide capacity to support a 
significant portion of surge and sustainment requirements in the 
deployment of U.S. military forces during a time of war or national 
emergency, or whenever the Secretary of Defense (or delegate) 
determines that it is necessary for national security or contingency 
operations.
    The text of VISA was first published in the Federal Register on 
February 13, 1997, effective for an initial two-year term expiring on 
February 13, 1999 (62 FR 6838-46). The VISA document had been extended 
and subsequently published in the Federal Register every two years. 
Effective September 30, 2009, Congress amended DPA Sec. 708 to note 
that each voluntary agreement expires five (5) years after the date it 
becomes effective. MARAD updated the VISA agreement language most 
recently in 2014, as published in the Federal Register on October 29, 
2014 (79 FR 64462-70), and extended the effective period of that 
language by five years until October 1, 2024, by notice in the Federal 
Register on September 30, 2019 (84 FR 51710-11). The agreement 
published in this notice incorporates, among other changes: (1) updates 
to vessel eligibility requirements, as first published in the Federal 
Register on January 31, 2018 (83 FR 4552-54); (2) changes to the 
requirements for coastwise trading waivers under 46 U.S.C. 501, 
pursuant to statutory amendments enacted in 2021 and 2022; (3) 
clarifications of certain definitions and obligations on VISA 
stakeholders; and (4) certain non-substantive clerical updates.
    In accordance with DPA Sec. 708(f)(2), the Maritime Administrator 
continues to find that VISA is necessary to respond to direct threats 
to the national defense or its preparedness programs, and sought a 
concurrent finding from the Assistant Attorney General for the 
Antitrust Division, Department of Justice (whose authority has been 
delegated from the Attorney General in accordance with 28 CFR 0.40(l)), 
in consultation with the Chair of the Federal Trade Commission, that 
the objectives of VISA may not be reasonably achieved through either a 
voluntary plan having fewer anticompetitive effects or the absence of 
such a voluntary agreement or plan of action. By notice in the Federal 
Register on October 2, 2024 (89 FR 80264-65), the Assistant Attorney 
General for the Antitrust Division, Department of Justice, in 
consultation with the Chair of the Federal Trade Commission, made such 
a concurrent finding on September 26, 2024. Therefore, in accordance 
with DPA Sec. 708(f)(2), VISA may be extended for another five-year 
term. The text published herein supersedes the 2014 language, as 
renewed in 2019, for an effective period of five years, ending October 
1, 2029. Copies of this agreement will be made available to the public 
upon request.

Voluntary Intermodal Sealift Agreement (VISA)

Table of Contents

Definitions
Preface
I. Purpose
II. Authorities
    A. MARAD
    B. USTRANSCOM
III. General
    A. Concept
    B. Responsibilities

[[Page 83942]]

    C. Termination of Charter, Leases and Other Contractual 
Arrangements
    D. Modification/Amendment of This Agreement
    E. Administrative Expenses
    F. Record Keeping
    G. MARAD Reporting Requirements
IV. Joint Planning Advisory Group (JPAG)
V. Activation of VISA Contingency Provisions
    A. General
    B. Notification of Activation
    C. Voluntary Capacity
    D. Stage I
    E. Stage II
    F. Stage III
    G. Partial Activation
VI. Participant Terms and Conditions
    A. Participation
    B. Agreement of Participant
    C. Effective Date and Duration of Agreement
    D. Participant Termination of VISA
    E. Carrier Coordination Agreements
    F. Vessel Qualifications
    G. Enrollment of Intermodal Capacity--Vessels, Facilities, and 
Equipment
    H. War Risk Insurance
    I. Antitrust Defense
    J. Breach of Contract Defense
    K. Vessel Sharing Agreements
VII. Application and Agreement

Abbreviations

CCA--Carrier Coordination Agreement
CFR--Code of Federal Regulations
CONOPS--Concept of Operations
DoD--United States Department of Defense
DOJ--United States Department of Justice
DOT--United States Department of Transportation
DPA--Defense Production Act of 1950, as amended (50 U.S.C. Chapter 
55)
E.O.-Executive Order
FEMA--Federal Emergency Management Agency
FMC--Federal Maritime Commission
FOIA--Freedom of Information Act (5 U.S.C. 552)
FTC--Federal Trade Commission
JCS--Joint Chiefs of Staff
JPAG--Joint Planning Advisory Group
MARAD--Maritime Administration
MSP--Maritime Security Program (46 U.S.C. 53101-11)
SecDef--United States Secretary of Defense
SecTrans--United States Secretary of Transportation
U.S.C.--United States Code
USCG--United States Coast Guard
USTRANSCOM--United States Transportation Command, inclusive of its 
military service component commands Air Mobility Command, Military 
Sealift Command, and Military Surface Deployment and Distribution 
Command, and its subordinate command Joint Enabling Capabilities 
Command
VISA--Voluntary Intermodal Sealift Agreement
VSA--Vessel Sharing Agreement

Definitions

    For purposes of this Agreement, the following definitions apply:

Administrator--Maritime Administrator, unless otherwise stipulated.
Agreement--Agreement (proper noun) refers to VISA.
Attorney General--Attorney General of the United States.
Broker--A person who arranges for transportation of cargo for a fee.
Carrier Coordination Agreement (CCA)--An agreement between two or 
more Participants or between Participant and non-Participant 
carriers to coordinate their services in a Contingency, including 
agreements to: (1) charter vessels or portions of the cargo-carrying 
capacity of vessels; (2) share cargo handling equipment, chassis, 
containers and ancillary transportation equipment; (3) share 
wharves, warehouse, marshaling yards and other marine terminal 
facilities; and (4) coordinate the movement of vessels.
Charter--Any agreement or commitment by which the possession or 
services of a vessel are secured for a period, or for one or more 
voyages, whether or not by a demise of the vessel.
Combatant Commander--Any of the military officers defined under 10 
U.S.C. 164.
Commander--Combatant Commander, USTRANSCOM, unless otherwise 
stipulated.
Commercial--Transportation service provided for profit by privately 
owned (not government owned) vessels to a private or government 
shipper. The type of service may be either common carrier or 
contract carriage.
Contingency--A military operation that is either designated by the 
Secretary of Defense as a contingency operation or becomes a 
contingency operation as a matter of law, in accordance with 10 
U.S.C. 101(a)(13).
Contract carrier--A for-hire carrier who does not hold out regular 
service to the general public, but instead contracts, for agreed 
compensation, with a particular shipper for the carriage of cargo in 
all or a particular part of a ship for a specified period of time or 
on a specified voyage or voyages.
Controlling interest--More than a 50-percent interest by stock 
ownership.
Dry cargo--Includes (1) any non-liquid good or commodity and (2) 
liquids shipped in pre-packaged containers (such as bottled drinking 
water). It does not include any bulk liquid cargo shipped directly 
in the holds of vessels.
Foreign-flag vessel--A vessel registered or documented under the 
laws of a country other than the United States of America.
Intermodal equipment--Containers (including specialized equipment), 
chassis, trailers, tractors, cranes, and other materiel handling 
equipment, as well as other ancillary items.
Management services--Management expertise and experience, intermodal 
terminal management, information resources, and control and tracking 
systems.
Military Services--Includes the armed services identified in 10 
U.S.C. 101(a)(4): United States Army, United States Navy, United 
States Air Force, United States Marine Corps, United States Space 
Force, and United States Coast Guard.
Ocean common carrier--In accordance with 46 U.S.C. 40102, an entity 
holding itself out to the general public to provide transportation 
by water of passengers or cargo for compensation that (1) assumes 
responsibility for transportation from port or point of receipt to 
port or point of destination, and (2) operates and utilizes a vessel 
operating on the high seas for all or part of that transportation.
Operator--An ocean common carrier or contract carrier that owns or 
controls or manages vessels by which ocean transportation is 
provided.
Organic sealift--For the purposes of this Agreement, ships 
considered to be under government control or long-term charter, 
including Fast Sealift Ships, Ready Reserve Force vessels and 
commercial ships under long-term charter to DoD.
Participant--A vessel operator that (1) successfully applies to join 
VISA, in accordance with Section VII of this document, and (2) 
enters into a USTRANSCOM VISA Contingency Contract. This may be 
augmented under the terms of Section VI(A) of this document.
Person--Includes individuals and corporations, partnerships, and 
associations existing under or authorized by the laws of the United 
States or any state, territory, district, or possession thereof, or 
of a foreign country.
Service contract--As defined in 46 U.S.C. 40102(21), a contract 
between a shipper (or a shipper's association) and an ocean common 
carrier (or conference) in which the shipper makes a commitment to 
provide a certain minimum quantity of cargo or freight revenue over 
a fixed time period, and the ocean common carrier or conference 
commits to a certain rate or rate schedule, as well as a defined 
service level (such as assured space, transit time, port rotation, 
or similar service features). The contract may also specify 
provisions in the event of nonperformance on the part of either 
party.
Standby--The interval between the effective date of a Participant's 
acceptance into VISA and the activation of any stage, and the 
periods between deactivation of all stages and any later activation 
of any stage.
U.S.-flag Vessel--A commercial vessel registered or documented under 
the laws of the United States of America in accordance with 46 
U.S.C. Chapter 121 and any associated regulations and instructions 
promulgated by USCG.
USTRANSCOM VISA Contingency Contract--The contract between a 
signatory party to VISA and USTRANSCOM establishing the minimum 
terms and conditions for VISA capacity activation. Attachment I of 
the contract is executed and signed by MSC, MARAD, USTRANSCOM and 
the individual carrier to enroll that carrier's vessel capacity into 
VISA Stages I, II and III.
Vessel Sharing Agreement (VSA) Capacity--Space chartered to a 
Participant for carriage of cargo, under its commercial contracts, 
service contracts or in common

[[Page 83943]]

carriage, aboard vessels shared with another carrier or carriers 
pursuant to a commercial vessel sharing agreement under which the 
carriers may compete with each other for the carriage of cargo. In 
U.S. foreign trades the agreement is filed with the Federal Maritime 
Commission (FMC) in conformity with the Shipping Act of 1984 and 
implementing regulations.
Volunteer--Any vessel owner or operator who is an ocean carrier and 
who offers to make capacity, resources, or systems available to 
support contingency requirements.

Preface

    The Administrator, pursuant to the authority contained in Section 
708 of the Defense Production Act of 1950, as amended (50 U.S.C. 4558), 
in cooperation with DoD, developed the Voluntary Intermodal Sealift 
Agreement (VISA) to provide DoD with assured access to the commercial 
sealift and intermodal shipping services/systems necessary to meet 
wartime, national emergency, national security, or contingency 
operation requirements.
    United States Transportation Command (USTRANSCOM) procures 
commercial shipping capacity to meet requirements for ships and 
intermodal shipping services/systems through arrangements with common 
carriers, with contract carriers and by charter. DoD (through 
USTRANSCOM) and DOT (through MARAD) maintain and operate a fleet of 
ships owned by or under charter to the Federal Government to meet the 
logistics needs of the Military Services and Combatant Commanders that 
cannot be met by existing commercial service. Government-controlled 
ships are selectively activated for peacetime military tests and 
exercises, and to satisfy military operational requirements that cannot 
be met by commercial shipping in time of war, national emergency, or 
military contingency. Foreign-flag shipping is used in accordance with 
applicable laws, regulations, and policies.
    VISA has been established to provide DoD with a coordinated, 
seamless transition from peacetime to armed conflict for the 
acquisition of commercial sealift and intermodal capability to augment 
DoD's organic sealift capabilities. This Agreement establishes the 
terms, conditions, and general procedures by which persons or parties 
may become VISA Participants. Through advance joint planning among 
USTRANSCOM, MARAD and the Participants, Participants may provide 
predetermined capacity in designated stages to support DoD Contingency 
requirements. During contingencies, Participants are afforded maximum 
flexibility to adjust commercial operations by Carrier Coordination 
Agreements (CCAs), in accordance with applicable law.
    Participants will be afforded the first opportunity to meet DoD 
peacetime and Contingency sealift requirements within applicable law 
and regulations, to the extent that the Government's operational 
requirements are met. In the event VISA Participants are unable to 
fully meet Contingency requirements, the shipping capacity made 
available under VISA may be supplemented by ships/capacity from non-
Participants in accordance with applicable law and by ships 
requisitioned under 46 U.S.C. 56301. In addition, containers and 
chassis made available under VISA may be supplemented by services and 
equipment acquired by USTRANSCOM or accessed by the Administrator.

I. Purpose

    A. The Administrator has determined, in accordance with DPA Section 
708(c)(1), that conditions exist that may pose a direct threat to the 
national defense of the United States or its preparedness programs and, 
under the provisions of Section 708, has certified to the Attorney 
General that an emergency preparedness agreement for utilization of 
U.S.-flag commercial vessels and intermodal shipping services/systems 
is necessary for the national defense. The Attorney General, in 
consultation with the FTC Chair, has issued a finding that dry cargo 
shipping capacity to meet national defense requirements cannot be 
provided by the industry through a voluntary agreement having less 
anticompetitive effects or without a voluntary agreement.
    B. VISA provides a responsive transition from peace to contingency 
operations through pre-coordinated agreements for sealift capacity to 
support DoD contingency requirements and establishes procedures for the 
commitment of intermodal shipping services/systems to satisfy such 
requirements.
    VISA will change from standby to active status upon activation by 
appropriate authority of any of the stages described in Section V.
    C. VISA promotes and facilitates DoD's use of existing commercial 
transportation resources and integrated intermodal transportation 
systems, in a manner which minimizes disruption to commercial 
operations, whenever possible.
    D. Participants' capacity which may be committed pursuant to this 
Agreement may include all intermodal shipping services/systems/
facilities and all ship types, including container, geared container, 
partial container, container/bulk, container/roll-on/roll-off, roll-on/
roll-off (of all varieties), multi-purpose/heavy lift, breakbulk ships, 
and tug and barge combinations.
    E. 46 U.S.C. 53107 directs SecTrans to establish an Emergency 
Preparedness Agreement in conjunction with SecDef, as part of the 
Maritime Security Program (MSP), that requires MSP participants to make 
their commercial transportation resources (including services) 
available to SecDef during times of armed conflict, national emergency, 
or whenever SecDef determines that such resources are necessary for 
national security or Contingency operations. VISA is the designated 
Emergency Preparedness Agreement for MSP, and participation in VISA 
fulfills the requirements of 46 U.S.C. 53107 on MSP participants.

II. Authorities

A. Department of Transportation and MARAD

    1. DPA Section 708, as amended (50 U.S.C. 4558); E.O. 13603; E.O. 
12656; 49 CFR 1.93(l); 49 CFR 1.81(a)(10).
    2. Section 401 of E.O. 13603 delegated the authority of the 
President under Section 708 to SecTrans, among others. By 49 CFR 
1.93(l), in consultation and coordination with DOT's Office of 
Intelligence, Security and Emergency Response, SecTrans delegated to 
the Administrator the authority under which VISA is sponsored.
    3. 46 U.S.C. 53107.
    4. 46 U.S.C. 501(b).

B. Department of Defense and USTRANSCOM

    1. 10 U.S.C. 113, 161-69.
    2. Unified Command Plan, designating the Commander as the DoD 
Single Manager for Transportation, including ``[p]roviding common-user 
and commercial transportation, terminal management, and aerial 
refueling.''
    3. DoD Directive (DoDD) 4500.09, Transportation and Traffic 
Management, designating the Commander as the DoD single manager for 
transportation for other than Service-unique or theater-assigned assets 
and provide common-user and commercial air, land, and sea 
transportation and delegating functions to serve as the DoD 
representative for Maritime Security Fleet actions that SecDef is 
authorized to take under 46 U.S.C. Ch. 531.
    4. DoD Instruction 4500.57, which further designates the Commander 
as the DoD authority to request MARAD activation of Ready Reserve Force 
(RRF) vessels pursuant to 46 U.S.C. 57100, which may be used for 
contingency operations, exercises, training and

[[Page 83944]]

testing, and other defense purposes for which scheduled or chartered 
commercial sealift assets are not available or suitable.

III. General

A. Concept

    1. VISA provides for the staged, time-phased availability of 
Participants' shipping services/systems to meet SecDef-directed DoD 
Contingency requirements in the most demanding defense-oriented sealift 
emergencies and for less demanding defense-oriented situations through 
pre-negotiated Contingency contracts between the government and 
Participants. Such arrangements will be jointly planned among MARAD, 
USTRANSCOM, and Participants in peacetime to allow for effective, 
efficient, and best valued use of commercial sealift capacity, provide 
DoD assured access, and minimize commercial disruption, whenever 
possible.
    a. Stages I and II provide for pre-negotiated contingency contracts 
between USTRANSCOM and Participants to provide sealift capacity against 
all projected DoD Contingency requirements. These agreements will be 
executed in accordance with approved DoD contracting methodologies.
    b. Stage III will provide for additional capacity to DoD when 
Stages I and II commitments or volunteered capacity are insufficient to 
meet Contingency requirements, and adequate shipping services from non-
participants are not available through established DoD contracting 
practices or U.S. Government treaty agreements.
    2. Activation will be in accordance with procedures outlined in 
Section V of this Agreement.
    3. Following is the prioritized order for utilization of commercial 
sealift capacity to meet DoD peacetime and Contingency requirements:
    a. U.S.-flag vessel capacity operated by a Participant and U.S.-
flag VSA capacity of a Participant.
    b. U.S.-flag vessel capacity operated by a non-Participant.
    c. Combination U.S./foreign-flag vessel capacity operated by a 
Participant and combination U.S./foreign-flag VSA capacity of a 
Participant.
    d. Combination U.S./foreign-flag vessel capacity operated by a non-
Participant.
    e. U.S. owned or operated foreign-flag vessel capacity and VSA 
capacity of a Participant.
    f. U.S. owned or operated foreign-flag vessel capacity and VSA 
capacity of a non-Participant.
    g. Foreign-owned or operated foreign-flag vessel capacity of a non-
Participant.
    4. Under Section VI.F. of this Agreement, Participants may 
implement CCAs to fulfill their contractual commitments to meet VISA 
requirements.

B. Responsibilities

    1. SecDef, through USTRANSCOM, will:
    a. Define time-phased requirements for Contingency sealift capacity 
and resources required in Stages I, II, and III to augment DoD sealift 
resources.
    b. Keep MARAD and Participants apprised of Contingency sealift 
capacity required and resources committed to Stages I and II.
    c. Obtain Contingency sealift capacity through the implementation 
of specific pre-negotiated USTRANSCOM Contingency contracts with 
Participants.
    d. Notify the Administrator upon activation of any stage of VISA.
    e. Co-chair (with MARAD) the Joint Planning Advisory Group (JPAG) 
(see section IV).
    f. Establish procedures, in accordance with applicable law and 
regulation, providing Participants with necessary determinations for 
use of foreign-flag vessels to replace an equivalent U.S.-flag capacity 
to transport a Participant's normal peacetime DoD cargo, when 
Participant's U.S.-flag assets are removed from regular service to meet 
VISA Contingency requirements.
    g. Provide a reasonable time to permit an orderly return of a 
Participant's vessel(s) to its regular schedule and termination of its 
foreign-flag capacity arrangements as determined through coordination 
between USTRANSCOM and the Participants.
    h. Review and endorse Participants' requests to MARAD for use of 
foreign-flag replacement capacity for non-DoD government cargo, when 
U.S.-flag capacity is required to meet Contingency requirements.
    2. SecTrans, through MARAD, will:
    a. Review the amount of sealift resources committed under 
USTRANSCOM contracts to Stages I and II and notify USTRANSCOM if a 
particular level of VISA commitment will have serious adverse impact on 
the U.S.-flag Merchant Marine's ability to provide essential maritime 
transportation and intermodal shipping services. MARAD's analysis will 
be based on the consideration that all VISA Stage I and II capacity 
committed will be activated. This notification will occur on an as 
required basis upon the Commander's acceptance of VISA commitments from 
the Participants. If advised by MARAD, USTRANSCOM will adjust the size 
of the stages or provide MARAD with justification for maintaining the 
size of those stages. USTRANSCOM and MARAD will coordinate to ensure 
that the volume of sealift assets committed to Stages I and II will not 
have an adverse national economic impact.
    b. Coordinate with DOJ for the expedited approval of CCAs.
    c. Upon request by the Commander and approval by SecDef to activate 
Stage III, allocate sealift capacity and intermodal assets to meet DoD 
Contingency requirements. DoD will have priority consideration in any 
allocation situation.
    d. Establish procedures, pursuant to 46 U.S.C. 53107(f), for 
determinations regarding the selection, equivalency, and duration of 
the use of foreign-flag vessels to replace U.S.-flag vessel capacity to 
transport the cargo of a Participant which has entered into an 
operating agreement under 46 U.S.C. 53103 whose U.S.-flag vessel 
capacity has been removed from regular service to meet VISA contingency 
requirements. Such foreign-flag vessels shall be eligible to transport 
cargo that is subject to U.S.-flag preference cargo requirements of 10 
U.S.C. 2631 (with respect to military cargo or cargo otherwise 
transported by DoD) and 46 U.S.C. 55302-05 (with respect to all other 
cargoes shipped by, or on account of, an agency of the United States 
Government). However, any procedures regarding the use of such foreign-
flag vessels to transport cargo subject to 10 U.S.C. 2631 must have an 
approved waiver in accordance with 10 U.S.C. 2631 and its implementing 
delegations and regulations.
    e. Co-chair (with USTRANSCOM) the JPAG.
    f. Review requests by Participants to the Secretary of Homeland 
Security under 46 U.S.C. 501(b) to waive compliance with the coastwise 
transportation requirements under 46 U.S.C. 55102 if U.S. coastwise-
qualified vessels are activated under VISA and make determinations of 
U.S. coastwise-qualified vessel non-availability during a VISA 
activation. To the extent feasible, participants with U.S. coastwise-
qualified vessels or vessel capacity will use CCAs or other 
arrangements to fulfill their VISA commitments to protect their ability 
to maintain domestic services for their commercial customers and to 
fulfill their commercial peacetime commitments with U.S.-flag vessels. 
In situations where the activation of VISA deprives a Participant of 
all or a portion of its U.S. coastwise-qualified vessels or vessel 
capacity and, at the same time, creates a general shortage of U.S. 
coastwise-qualified vessel(s) or vessel

[[Page 83945]]

capacity on the domestic market, based on market surveys, Participants 
with coastwise-qualified tonnage may apply for vessel-specific waivers 
under 46 U.S.C. 501(b). The vessel(s) or vessel capacity for which such 
waivers are requested will be approximately equal to the U.S. 
coastwise-qualified vessel(s) or vessel capacity chartered or under 
contract to DoD.

C. Termination of Charters, Leases and Other Contractual Arrangements

    1. USTRANSCOM will notify the Administrator as soon as possible of 
the prospective termination of charters, leases, management service 
contracts or other contractual arrangements made by DoD under this 
Agreement.
    2. In the event of general requisitioning of ships under 46 U.S.C. 
56301, the Administrator will consider commitments made with DoD under 
this Agreement when selecting those vessels designated for requisition 
by, purchase by, or charter for the use of, the Government.

D. Modification of This Agreement

    1. The Attorney General may modify this Agreement, in writing, 
after consultation with the FTC Chair, SecTrans, through their 
representative MARAD, and SecDef, through their representative the 
Commander. Although Participants may withdraw from this Agreement 
pursuant to Section VI.D, they remain subject to VISA as modified until 
such withdrawal.
    2. The Administrator, Commander, and Participants may modify this 
Agreement at any time by mutual agreement, but only in writing with the 
approval of the Attorney General and the FTC Chair.
    3. Participants may propose modifications to this Agreement at any 
time.

E. Administrative Expenses

    Administrative and out-of-pocket expenses incurred by a participant 
must be borne solely by the Participant.

F. Record Keeping

    1. MARAD will maintain carrier VISA application records in 
accordance with applicable DOT directives. Once a carrier is selected 
as a VISA Participant, MARAD will forward a copy of the VISA 
application form to USTRANSCOM.
    2. In accordance with 44 CFR 332.2(c), MARAD will record JPAG 
meetings and make a full and verbatim transcript available for public 
inspection upon request, subject to FOIA exemptions under 5 U.S.C. 
552(b). MARAD will send this transcript, and any voluntary agreement 
resulting from the meeting, to the Attorney General, the FTC Chair, the 
FEMA Administrator, any other party or repository required by law, and 
to Participants upon their request.
    3. USTRANSCOM will be the official custodian of records related to 
the Contingency contracts to be used under this Agreement, including 
specific information on enrollment of a Participant's capacity in VISA.
    4. In accordance with 44 CFR 332.3(d), a Participant must maintain 
for five (5) years all minutes of meetings, transcripts, records, 
documents, and other data, including any communications with other 
Participants or with any other member of the industry or their 
representatives, related to the administration of VISA, including 
planning related to and implementation of Stage activations of this 
Agreement. Each Participant agrees to make such records available to 
the Administrator, the Commander, the Attorney General, and the FTC 
Chair for inspection and copying at reasonable times and upon 
reasonable notice. Any record maintained by MARAD or USTRANSCOM 
pursuant to paragraphs 1, 2, or 3 of this subsection must be available 
for public inspection and copying unless exempted under FOIA on the 
grounds specified in 5 U.S.C. 552(b)(1), (b)(3), or (b)(4), in 
accordance with DPA Section 708 and implementing regulations at 44 CFR 
part 332.5.

G. MARAD Reporting Requirements

    MARAD will report to the FEMA Administrator, as required, on the 
status and use of this Agreement.

IV. Joint Planning Advisory Group (JPAG)

    A. The Joint Planning Advisory Group (JPAG) provides USTRANSCOM, 
MARAD and VISA Participants a planning forum to:
    1. Analyze DoD Contingency sealift/intermodal service and resource 
requirements.
    2. Identify commercial sealift capacity that may be used to meet 
DoD requirements, related to Contingencies and, as requested by 
USTRANSCOM, exercises and special movements.
    3. Develop and recommend CONOPS to meet DoD-approved Contingency 
requirements and, as requested by USTRANSCOM, exercises and special 
movements.
    B. JPAG will be co-chaired by MARAD and USTRANSCOM and will convene 
as jointly determined by the co-chairs.
    C. JPAG will consist of designated representatives from MARAD, 
USTRANSCOM, each Participant, and maritime labor. Other attendees may 
be invited at the discretion of the co-chairs as necessary to meet JPAG 
requirements. Representatives will provide technical advice and support 
to ensure maximum coordination, efficiency, and effectiveness in the 
use of Participants' resources. All Participants will be invited to all 
open JPAG meetings. For selected JPAG meetings, attendance may be 
limited to designated Participants to meet specific operational 
requirements.
    1. The co-chairs may establish working groups within JPAG. 
Participants may be assigned to working groups as necessary to develop 
specific CONOPS.
    2. Each working group will be co-chaired by representatives 
designated by MARAD and USTRANSCOM.
    D. JPAG will not be used for contract negotiations and/or contract 
discussions between carriers and DoD; such negotiations and/or 
discussions will be in accordance with applicable DoD contracting 
policies and procedures.
    E. The JPAG co-chairs will:
    1. Notify the Attorney General, the FTC Chair, Participants, and 
the maritime labor representative of the time, place, and nature of 
each JPAG meeting.
    2. Provide for publication in the Federal Register of a notice of 
the time, place, and nature of each JPAG meeting. If the meeting is 
open, a Federal Register notice will be published reasonably in advance 
of the meeting. If a meeting is closed, a Federal Register notice will 
be published within ten (10) days after the meeting and will include 
the reasons for closing the meeting.
    3. Establish the agenda for each JPAG meeting and be responsible 
for adherence to the agenda.
    4. Provide for a full and complete transcript or other record of 
each meeting and provide one copy each of transcript or other record to 
the Attorney General, the FTC Chair, and to Participants, upon request.
    F. Security Measures--The co-chairs will develop and coordinate 
appropriate security measures so that Contingency planning information 
can be shared with Participants to enable them to plan their 
commitments.

V. Activation of VISA Contingency Provisions

A. General

    VISA may be activated at the request of SecDef as needed to support 
Contingency operations. Activating voluntary commitments of capacity to

[[Page 83946]]

support such operations will be in accordance with pre-negotiated 
Contingency contracts between USTRANSCOM and Participants.

B. Notification of Activation

    1. The Commander will notify the Administrator of the activation of 
Stages I, II, and III.
    2. The Administrator will notify the Attorney General and the FTC 
Chair when it has been determined by DoD that activation of any Stage 
of VISA is necessary to meet DoD Contingency requirements.

C. Voluntary Capacity

    1. Throughout the activation of any Stages of this Agreement, DoD 
may utilize voluntary commitment of sealift capacity or systems.
    2. Requests for volunteer capacity will be extended simultaneously 
to both Participants and other carriers. First priority for utilization 
will be given to Participants who have signed Stage I and/or II 
USTRANSCOM Contingency contracts and are capable of meeting the 
operational requirements. Participants providing voluntary capacity may 
request USTRANSCOM to activate their pre-negotiated Contingency 
contracts; to the maximum extent possible, USTRANSCOM, where 
appropriate, will support such requests. Volunteered capacity will be 
credited against Participants' staged commitments, in the event such 
stages are subsequently activated.
    3. In the event Participants are unable to fully meet Contingency 
requirements, or do not voluntarily offer to provide the required 
capacity, the shipping capacity made available under VISA may be 
supplemented by ships/capacity from non-Participants.
    4. When voluntary capacity does not meet DoD Contingency 
requirements, DoD will activate the VISA stages as necessary.

D. Stage I

    1. Stage I will be activated in whole or in part by the Commander, 
with approval of SecDef, when voluntary capacity commitments are 
insufficient to meet DoD Contingency requirements. The Commander will 
notify the Administrator upon activation.
    2. USTRANSCOM will implement Stage I Contingency contracts as 
needed to meet operational requirements.

E. Stage II

    1. Stage II will be activated, in whole or in part, when 
Contingency requirements exceed the capability of Stage I and/or 
voluntarily committed resources.
    2. Stage II will be activated by the Commander, with approval of 
SecDef, following the same procedures discussed in paragraph D above.

F. Stage III

    1. Stage III will be activated, in whole or in part, when 
Contingency requirements exceed the capability of Stages I and II, and 
other shipping services are not available. This stage involves DoD use 
of capacity and vessels operated by Participants which will be 
furnished to DoD when required in accordance with this Agreement. The 
capacity and vessels are allocated by MARAD on behalf of SecTrans to 
the Commander.
    2. Stage III will be activated by the Commander upon approval by 
SecDef. Upon activation, SecDef will request SecTrans to allocate 
sealift capacity based on DoD requirements, in accordance with Title 1 
of DPA (50 U.S.C. 4511-18), to meet the Contingency requirement. All 
Participants' capacity committed to VISA is subject to use during Stage 
III.
    3. Upon allocation of sealift assets by SecTrans, through its 
designated representative MARAD, the Commander will execute Contingency 
contracts with Participants, using standard negotiating procedures. 
Until execution of such contract, the Participant agrees that the 
assets remain subject to the provisions 46 U.S.C. 56301.

G. Partial Activation

    As used in this Section V, the term activation in part of any Stage 
under this Agreement means one of the following:
    1. Activation of only a portion of the committed capacity of some, 
but not all, of the Participants in any Stage that is activated; or
    2. Activation of the entire committed capacity of some, but not 
all, of the Participants in any Stage that is activated; or
    3. Activation of only a portion of the entire committed capacity of 
all the Participants in any Stage that is activated.

VI. Participant Terms and Conditions

A. Participation

    1. Any U.S.-flag vessel operator organized under the laws of a 
State or Territory of the United States, or the District of Columbia, 
may become a Participant in this Agreement by submitting an executed 
copy of the form referenced in Section VII, and by entering into a VISA 
Contingency Contract with USTRANSCOM, which establishes a legal 
obligation to perform and the compensation methodology for all services 
rendered.
    2. Consideration of a Participant's overall vessel capacity, 
intermodal resources, facilities and equipment includes (1) assets 
owned or operated by the applicant vessel operator described in VI.A.1 
above, and (2) all United States subsidiaries and affiliates of the 
vessel operator that own, operate, control, or bareboat charter vessels 
and intermodal equipment in the regular course of their business and in 
which the vessel operator holds a controlling interest.
    3. Upon request of the applicant executing the form referenced in 
Section VII, Participants may include their controlled non-domestic 
subsidiaries and affiliates as part of their capacity commitment, 
provided that the Administrator, in coordination with the Commander, 
grants specific approval for their inclusion.
    4. Any vessel owner or operator receiving payments under a Maritime 
Security Program (MSP) Operating Agreement, in accordance with 46 
U.S.C. 53106, must become a Participant with respect to all vessels 
enrolled in MSP at all times until the date the MSP Operating Agreement 
would have terminated according to its original terms. The MSP operator 
must be enrolled in VISA as a Stage III Participant, at a minimum. Such 
participation will satisfy the requirement for an MSP participant to be 
enrolled in an emergency preparedness program approved by SecDef as 
provided in 46 U.S.C. 53107.
    5. A Participant is subject only to the provisions of this 
Agreement.
    6. MARAD shall publish a list of Participants periodically in the 
Federal Register.

B. Agreement of Participant

    1. Each Participant agrees to provide commercial sealift and/or 
intermodal shipping services/systems in accordance with USTRANSCOM VISA 
Contingency contracts. USTRANSCOM will review and approve each 
Participant's commitment to ensure it meets DoD Contingency 
requirements. A Participant's capacity commitment to Stages I and II 
will be one of the considerations in determining the level of DoD 
peacetime contracts awarded, except for U.S. coastwise-qualified vessel 
capacity as discussed in paragraph 4, below.
    2. USTRANSCOM may also enter into Contingency contracts, not linked 
to peacetime contract commitments, with Participants, as required to 
meet Stage I and II requirements.

[[Page 83947]]

    3. Commitment of Participants' resources to VISA is as follows:
    a. Stage III: A carrier desiring to participate in DoD peacetime 
contracts/traffic must commit no less than 50% of its total U.S.-flag 
capacity into Stage III. Carriers receiving payments under MSP 
Operating Agreements will have vessels receiving such assistance 
enrolled in Stage III. Participants' capacity under long-term charter 
to DoD will be considered organic to DoD and does not count towards the 
Participant's Contingency commitment during the period of the charter. 
Participants whose capacity is utilized under Stage III activation will 
be compensated based upon the negotiated rates by the Participant and 
USTRANSCOM within the USTRANSCOM Contingency Contract.
    b. Stages I and II: DoD will annually develop and publish minimum 
commitment requirements for Stages I and II. Normally, the awarding of 
a long-term DoD contract (i.e., one year or longer), exclusive of 
charters, will include the annual predesignated minimum commitment to 
Stages I and/or II. Participants desiring to bid on DoD peacetime 
contracts will be required to provide commitment levels to meet DoD-
established Stage I and/or II minimums on an annual basis. Participants 
may gain additional consideration for peacetime contract cargo 
allocation awards by committing capacity to Stages I and II beyond the 
specified minimums. If the Participant is awarded a contract reflecting 
such a commitment, that commitment must become the actual amount of a 
Participant's U.S.-flag capacity commitment to Stages I and II. A 
Participant's Stage III U.S.-flag capacity commitment must represent 
its total minimum VISA commitment. That Participant's Stage I and II 
capacity commitments, as well as any volunteer capacity contribution by 
Participant, are portions of Participant's total VISA commitment. 
Participants activated during Stages I and II will be compensated in 
accordance with pre-negotiated USTRANSCOM VISA Contingency contracts.
    4. Participants exclusively operating vessels engaged in domestic 
trades will be required to commit 50% of that capacity to Stage III. 
Such Participants will not be required to commit capacity to Stages I 
and II as a consideration of domestic peacetime traffic and/or contract 
award. However, such Participants may voluntarily agree to commit 
capacity to Stages I and/or II.
    5. The Participant owning, operating, or controlling an activated 
ship or ship capacity will provide intermodal equipment and management 
services needed to utilize the ship and equipment at not less than the 
Participant's normal efficiency, in accordance with the pre-negotiated 
USTRANSCOM VISA Contingency contracts implementing this Agreement.
    6. Each Participant acknowledges and agrees to abide by all 
provisions of DPA Section 708, as amended, and regulations related 
thereto which are promulgated by SecTrans, the Attorney General, and 
the FTC Chair. 49 CFR part 33 establishes procedures for assigning the 
priority for use and the allocation of shipping services, containers, 
and chassis to meet emergency requirements. JPAG will inform 
Participants of new and amended rules and regulations as they are 
issued in accordance with law and administrative due process. Although 
Participants may withdraw from VISA, they remain subject to all of the 
terms of this Agreement.

C. Effective Date and Duration of the Agreement

    1. Participation in this Agreement is effective upon execution by 
MARAD of the submitted form referenced in Section VII, and approval by 
USTRANSCOM by execution of an USTRANSCOM VISA Contingency Contract, for 
Stage III, at a minimum.
    2. VISA participation remains in effect until the Participant 
terminates the Agreement in accordance with paragraph D below, or 
termination of the Agreement in accordance with 44 CFR Sec. 332.4. 
Notwithstanding termination of VISA or participation in VISA, 
obligations pursuant to executed DoD peacetime contracts must remain in 
effect for the term of such contracts and are subject to all terms and 
conditions thereof.

D. Participant Termination of VISA

    1. Except as provided in paragraph 2 below, a Participant may 
terminate its participation in VISA upon written notice to the 
Administrator. Such termination will become effective 30 days after 
written notice is received, unless obligations incurred under VISA by 
virtue of activation of any Contingency contract cannot be fulfilled 
prior to the termination date, in which case the Participant must 
complete the performance of such obligations. Voluntary termination by 
a carrier of its VISA participation shall not act to terminate or 
otherwise mitigate any separate contractual commitment entered into 
with DoD.
    2. A Participant having an MSP Operating Agreement with MARAD must 
not withdraw from this Agreement at any time during the original term 
of the MSP Operating Agreement.
    3. A Participant's withdrawal, or termination of this Agreement, 
will not deprive a Participant of an antitrust defense otherwise 
available to it in accordance with DPA Section 708 for the fulfillment 
of obligations incurred prior to withdrawal or termination.

E. Carrier Coordination Agreements (CCA)

    1. When any Stage of VISA is activated or when DoD has requested 
volunteer capacity pursuant to Section V.B. of VISA, Participants may 
implement approved CCAs to meet the needs of DoD and to minimize the 
disruption of their services to the civil economy.
    2. A CCA for which the parties seek the benefit of DPA Section 
708(j) must be identified as such and be submitted to the Administrator 
for approval and certification in accordance with DPA Section 
708(f)(1)(A). Upon approval and certification, the Administrator will 
transmit the Agreement to the Attorney General for a finding in 
accordance with DPA Section 708(f)(1)(B). Parties to approved CCAs may 
avail themselves of the antitrust defenses set forth in DPA Section 
708(j). Nothing in VISA precludes Participants from engaging in lawful 
conduct (including carrier coordination activities) that lies outside 
the scope of an approved CCA; but antitrust defenses will not be 
available pursuant to DPA Section 708(j) for such conduct.
    3. Participants may seek approval for CCAs at any time.

F. Vessel Qualifications

    1. All vessels enrolled in VISA must be capable of operating in 
worldwide/intercontinental trades for dry cargoes (i.e., not tankers) 
and must be capable of carrying military cargoes, including hazardous 
cargoes, on transoceanic voyages. Participants must provide evidence of 
this capability for all vessels they seek to enroll by submitting USCG 
certificates of inspection, international load line certificates, 
classification society survey reports, and/or documents of compliance 
for the carriage of certain goods or operation in certain worldwide 
geographic regions, as appropriate.
    2. Participants may apply to enroll either self-propelled vessels, 
tugs-and-barges, or both. If applying with tugs-and-barges, 
Participants or applicants must provide MARAD satisfactory evidence 
that tug service of sufficient horsepower will be available for all 
barges proposed for enrollment in VISA,

[[Page 83948]]

and of the barges' capacity to carry military cargoes 
intercontinentally.
    3. If Participants offer vessels that they operate under bareboat 
charter, such charters must state that the vessel's owner will not 
interfere with the charterer's obligation to commit the chartered 
vessels to VISA for the duration of the charter. If a Participant 
offering tug-and-barge capacity does not own or bareboat charter 
sufficient tug service for the barges it owns, then it must submit time 
charters for the additional tugs needed to cover its barge capacity, 
valid through the period of its VISA enrollment.

G. Enrollment of Intermodal Capacity Vessels, Facilities, and Equipment

    1. Participant will prepare a list identifying the ships/capacity 
and intermodal facilities, connections, and equipment committed by a 
Participant to each Stage of VISA and submit such list to USTRANSCOM 
within seven calendar days after a carrier has become a Participant. 
USTRANSCOM will maintain a record of all such commitments. Participants 
will notify USTRANSCOM of any changes not later than seven days prior 
to the change.
    2. USTRANSCOM will provide a copy of each Participant's VISA 
commitment data and all changes to MARAD.
    3. In accordance with DPA Section 708, as amended, and implementing 
regulations at 44 CFR part 332.5, any information made available to 
administer this agreement or plan of action must be made available for 
public inspection and copying subject to FOIA exemptions under 5 U.S.C. 
552(b)(1), (b)(3), or (b)(4). Information which a Participant 
identifies as privileged or business confidential/proprietary data 
shall be withheld from public disclosure in accordance with DPA 
Sections 708(h)(3) and 705(e), or which qualifies for exemption from 
public disclosure under 5 U.S.C. 552(b).
    4. Enrolled ships are required to comply with 46 CFR part 307, 
Establishment of Mandatory Position Reporting System for Vessels.

H. War Risk Insurance

    1. Where commercial war risk insurance is not available on 
reasonable terms and conditions, DOT will provide non-premium 
government war risk insurance, subject to the provisions of 46 U.S.C. 
53905.
    2. Pursuant to 46 CFR 308.1(c), the Administrator will find each 
ship enrolled or utilized under this Agreement eligible for U.S. 
Government war risk insurance.

I. Antitrust Defense

    1. Under the provisions of DPA Section 708(j), each carrier must 
have available as a defense to any civil or criminal action brought 
under the antitrust laws of the United States, or any similar law of 
any State, Territory, or the District of Columbia, with respect to any 
action taken to develop or carry out this Agreement, that such act was 
taken in the course of developing or carrying out this Agreement and 
that the Participant complied with the provisions of DPA and any 
regulation thereunder, and acted in accordance with the terms of this 
Agreement.
    2. This defense will not be available to the Participant for any 
action occurring after termination of this Agreement. This defense will 
not be available upon the modification of this Agreement with respect 
to any subsequent action that is beyond the scope of the modified text 
of this Agreement, except that no such modification will be 
accomplished in a way that will deprive the Participant of antitrust 
defense for the fulfillment of obligations incurred.
    3. This defense will be available only if and to the extent that 
the Participant asserting it demonstrates that the action, which 
includes a discussion or agreement, was within the scope of this 
Agreement.
    4. The person asserting the defense bears the burden of proof.
    5. The defense will not be available if the person against whom it 
is asserted shows that the action was taken for the purpose of 
violating the antitrust laws.
    6. As appropriate, the Administrator, on behalf of SecTrans, and 
DoD will support agreements filed by Participants with FMC that are 
related to the standby or Contingency implementation of VISA.

J. Breach of Contract Defense

    Under the provisions of DPA Section 708, in any action in any 
Federal court or the courts of any State, Territory, or the District of 
Columbia for breach of contract, there will be available as a defense 
that the alleged breach of contract was caused predominantly by action 
taken by a Participant during an emergency (including action taken in 
imminent anticipation of an emergency) to carry out this Agreement. 
Such defense will not release the party asserting it from any 
obligation under applicable law to mitigate damages to the greatest 
extent possible.

K. Vessel Sharing Agreements (VSA)

    1. VISA allows Participants the use of a VSA to utilize non-
Participant U.S.-flag or foreign-owned and operated foreign-flag vessel 
capacity as a substitute for VISA Contingency capability provided that:
    a. The foreign-flag capacity is utilized in accordance with 10 
U.S.C. 2631, 46 U.S.C. 55302-05, and associated delegations and/or 
regulations.
    b. The use of a VSA, either currently in use or a new proposal, as 
a substitution to meet DoD Contingency requirements is agreed upon by 
USTRANSCOM and MARAD.
    c. The Participant carrier demonstrates adequate control over the 
offered VSA capacity during the period of utilization.
    d. Participant's service requirements are satisfied.
    e. Participant is responsible to DoD for the carriage or services 
contracted for. Though VSA capacity may be utilized to fulfill a 
Contingency commitment, a Participant's U.S.-flag VSA capacity in 
another Participant's vessel will not act in a manner to increase a 
Participant's capacity commitment to VISA.
    2. Participants will apprise MARAD and USTRANSCOM in advance of any 
change in a VSA of which it is a member, if such changes reduce the 
availability of Participant capacity provided for in any approved and 
accepted Contingency Concept of Operations.
    3. Participants will not act as a broker for DoD cargo unless 
requested by USTRANSCOM.

VII. Application and Agreement

    The Administrator, in coordination with the Commander, has adopted 
the following form, titled Application to Participate in the Voluntary 
Intermodal Sealift Agreement, by which intermodal ship operators may 
apply to become a Participant in this Agreement. The form incorporates, 
by reference, the terms of this Agreement.

United States of America, Department of Transportation, Maritime 
Administration

Application To Participate in the Voluntary Intermodal Sealift 
Agreement

    The applicant identified below hereby applies to participate in the 
Maritime Administration's agreement entitled ``Voluntary Intermodal 
Sealift Agreement.'' The text of said Agreement is published in ______ 
Federal Register ______, ______, _20_. This Agreement is authorized 
under Section 708 of the Defense Production Act of 1950, as amended (50 
U.S.C. 4558). Regulations governing this Agreement appear at 44 CFR 
part 332

[[Page 83949]]

The applicant, if selected, hereby acknowledges and agrees to the 
incorporation by reference into this Application and Agreement of the 
entire text of the Voluntary Intermodal Sealift Agreement published in 
______ Federal Register ______, ______, _20_, as though said text were 
physically recited herein.
    The Applicant, as a Participant, agrees to comply with the 
provisions of Section 708 of the Defense Production Act of 1950, as 
amended, the regulations of 44 CFR part 332 and the terms of the 
Voluntary Intermodal Sealift Agreement. Further, the applicant, if 
selected as a Participant, hereby agrees to contractually commit to 
make specifically enrolled vessels or capacity, intermodal equipment 
and management of intermodal transportation systems available for use 
by the Department of Defense and to other Participants as discussed in 
this Agreement and the subsequent USTRANSCOM Voluntary Intermodal 
Sealift Agreement Contingency Contract for the purpose of meeting 
national defense requirements.

Attest:
-----------------------------------------------------------------------
(Corporate Secretary)

Effective Date:
-----------------------------------------------------------------------
(Secretary)------------------------------------------------------------

(Applicant-Corporate Name)---------------------------------------------

(Signature)
-----------------------------------------------------------------------
(Position Title)
United States of America, Department of Transportation, Maritime 
Administration

By:
-----------------------------------------------------------------------
Maritime Administrator

(Authority: Section 708 of the Defense Production Act, as amended 
(50 U.S.C. 4558), 49 CFR 1.93(l), E.O. 13603, 49 CFR 1.81(a)(10), 
E.O. 12656)

    By Order of the Maritime Administrator.
T. Mitchell Hudson, Jr.,
Secretary, Maritime Administration.
[FR Doc. 2024-23974 Filed 10-17-24; 8:45 am]
BILLING CODE 4910-81-P
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