U.S.-flag vessels eligible for the U.S. coastwise (Jones Act) trade cannot be "rebuilt" outside the United States without losing permanently their Jones Act eligibility. Pursuant to its regulations, the U.S. Coast Guard issues preliminary determinations to vessel owners seeking to have foreign work done on their vessel so as to confirm that such work will not constitute a "rebuilding" of the vessel and thereby deprive the vessel of further Jones Act eligibility. On June 14, 2013, the U.S. Coast Guard issued a key rebuild determination to Horizon Lines Inc. with respect to the repowering of two steam propulsion vessels outside the United States with geared medium speed diesel dual fuel engine plans confirming that the planned work would not constitute a foreign “rebuilding.” On December 11, 2013, the Coast Guard issued a second favorable ruling to Horizon with respect four other Horizon vessels where similar foreign work will be performed.

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