United States Lines, Inc.'s, Operating Differential Subsidy Agreement

Pursuant to a congressional request, GAO reported on the United States Lines, Inc.'s acquisition of Farrell Lines, Inc.'s rights to Federal operating differential subsidies on a trade route running between the U.S. North Atlantic ports and certain ports in the United Kingdom and continental Europe. GAO was asked: (1) how much United States Lines would pay Farrell for the subsidy rights to the trade route; (2) how the vessel replacement provisions in the United States Lines' subsidy contract for the trade route differ from the standard subsidy vessel replacement provisions; and (3) whether the United States Lines' pending application for subsidy on its other trade routes contain similar vessel replacement provisions.