by James Lightbourn at FREIGHT + FORTUNE
The recent developments in Venezuela are unprecedented, to say the least. While the world’s attention focuses on the New York courtroom where former President Maduro and his wife are standing trial on drug trafficking charges, two other “prisoners” have uncertain fates: the U.S.-seized VLCCs (Very Large Crude Carriers) at anchor off of Houston.
When thinking about what will come of these two VLCCs, the “Skipper” and “Centuries,” we could start by looking back in recent history to a cocaine bust, a Taiwanese shipping entrepreneur, and a Jones Act loophole.
2003 | Cocaine Bust
North of Venezuela in 2003, the British Royal Navy and the U.S. Coast Guard boarded a 1988 Polish-built general cargo vessel, known then as the “Yalta”. Following a search of the Yalta, 3.1 tons of cocaine were found, with a street value of more than $400 million. The U.S. Coast Guard arrested the Yalta’s 17-member crew and seized the vessel under the U.S. government’s instruction.
2004 | Taiwanese Shipping Entrepreneur
In Tampa in 2004, the Yalta was sold at auction for $2.7 million to National Shipping of America (NSA), founded by Dr. C.C. Chen who also founded Taiwanese container line Wan Hai Lines, currently the world’s 11th largest container line. After purchasing the Yalta, NSA renamed it “National Glory”, put it through an extensive $22.4 million drydock to optimize it to carry containers, and then chartered the vessel into the U.S.-flag service of American President Lines (APL).