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PHILADELPHIA — The conservation organization that oversees the storied but aging ocean liner and its owner have resolved a years-long rent dispute that will make it easier for a Florida county to transform the historic ship into the largest artificial reef in the world.
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In June, a federal judge ruled that the SS United States Conservancy had until Sept. 12 to submit plans to relocate the ship, a 1,000-foot ocean liner that still holds a transatlantic speed record set more than 70 years ago. However, that deadline passed after the conservancy filed a lawsuit accusing Penn Warehousing of sabotaging its efforts to sell the ship.
Earlier this month, the conservation organization reached a tentative agreement with Okaloosa County in Florida's coastal Panhandle that was contingent on resolving the rent dispute through court-mandated mediation. The agreement resolving this dispute was announced on Friday.
Conservation and county officials gathered Saturday at the Philadelphia pier where the ship is docked for a small title transfer ceremony, although the agreement with Okaloosa County still needs final approval from a federal judge, Questioner from Philadelphia reported.
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Okaloosa officials plan to sink the ship and create what supporters say will be a barnacle-encrusted star in a constellation of more than 500 artificial reefs in the county that will make it a signature diving attraction that could generate millions of dollars a year in local spending on dive tourism shops, charter boats fishing spots and hotels.
“We can say that you will not be lost, you will not be forgotten, you will no longer be neglected and abused,” said Thomas Watkins, a member of the conservation board, as he said goodbye to the ship. “You will be rightly honored, cherished and cherished in your new home and new dimension. You will no longer sail the seas, but you will be surrounded and caressed by them.”
Officials said the deal to purchase the ship could cost more than $10 million. The lengthy process of cleaning, transporting and sinking the ship is expected to take at least 1.5 years.
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The rent dispute stemmed from Penn Warehousing's August 2021 decision to double the ship's daily docking fee to $1,700, an increase the conservator did not agree to. The company, through its lawyers, said it wanted to regain access to the waterfront so it could replace the ship with a commercial customer that would bring jobs and tax revenue to the city.
When the insurance company continued to pay the previous rate set in 2011, Penn Warehousing terminated the lease in March 2022. After much legal wrangling, U.S. District Judge Anita B. Brody held a court hearing in January, but also encouraged both sides to reach an agreement settlement rather than leaving it to her.
Ultimately, she ruled that the conservancy's failure to pay the new rate did not amount to a breach of contract nor did it entitle Penn Warehousing to damages. However, she stated that under Pennsylvania contract law, a demurrage agreement may be terminated at its discretion with reasonable notice.
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Christened in 1952, the SS United States was once considered a paragon of American engineering while serving as a military ship capable of carrying thousands of troops. During its maiden voyage in 1952, it broke the transatlantic speed record in both directions, reaching an average speed of 36 knots, or just over 66 km/h, the Associated Press reported from the ship.
On this voyage, the ship crossed the Atlantic in three days, 10 hours and 40 minutes, beating the time of the RMS Queen Mary by 10 hours. To this day, the SS United States holds the speed record for a transatlantic liner.
The SS United States became a reserve ship in 1969 and later passed to various private owners who hoped to rebuild her. Ultimately, however, their plans proved to be too costly or poorly planned, and the ship languished on the Delaware River wharf in South Philadelphia for years.
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