Fate of SS United States in Court’s Hands, Owners Say Ship Is Held Hostage

The battle between the non-profit SS United States Conservancy and pier operator Penn Warehousing took a new turn throwing the fate of the ship back in the hands of the US District Court. The owners of the vessel filed an urgent motion with the court just hours before the court-imposed deadline to have an agreement to move the vessel out of the Philadelphia berth it has been sitting at for nearly 30 years.

The SS United States Conservancy unleashed a raft of accusations against Penn Warehousing which it says is tantamount to holding the vessel hostage for a $3 million “service fee.” They are accusing the pier operator of “engaged in a range of misconduct to block the Conservancy’s efforts to comply” with the court’s orders. In the latest filing, they are alleging the company blocked a contract for the sale of the vessel, demanded the $3 million payment, and attempted to negotiate its own sale of the vessel even though it does not have title to the ship.

The court initially set September 12 as a deadline for the SS United States Conservancy to remove the vessel from the pier as part of a fight that began in 2021 in which the pier operator sought to dramatically raise the berthing fee to $1,700 per day. The court ordered the vessel’s removal but rejected the rent increase and claims for a fee to cover alleged damages to the bollards and protective bumpers at the pier. The order was later amended to say the Conservancy needed to have a contract by today for the fate of the ship.

The Conservancy reports it entered into a contingent contract with Okaloosa Country, Florida on August 27 for the reefing of the vessel and establishment of a shoreside museum. Among the contingencies was an agreement with Penn Warehousing to permit the vessel to remain until the new owners could complete its removal after hurricane season as well as country approval, and a viable remediation and reefing proposal.

The country reports it delayed approval of the deal because of the $3 million demand from Penn Warehousing and no progress on the docking agreement. They also confirmed that Penn Warehousing had offered to sell the ship to the country earlier in 2024 for $2.5 million although it does not have the title to the ship. The county says it rejected the offer due to the price (it is paying $1 million for the ship) as well as primarily Penn not having ownership and not providing for any due diligence.

To progress its reefing plan, the country reports it has completed fuel tank soundings, PCB tests, tow planning, and other steps. It projects it could move the ship from Philadelphia to a pier in Norfolk, Virginia by late September or not later than October 12. Approval of the contract however was tabled till the September 17 board meeting after the demands from Penn Warehousing.

The filing is asking the court to again extend the deadline for the ship’s removal till possibly December 5 at the latest. The Conservancy contends Penn Warehousing has been acting in “bad faith to prevent it from complying” with the court’s orders.

Penn Warehousing has proposed if the ship was not removed by today the court should arrest the SS United States and give title to the company.  It is believed they would then auction the ship off to the highest bidder, either the Florida counties or scrappers.

The Eastern District of Pennsylvania court and Judge Anita Brody set a video hearing from Friday, September 13 to review the motion and decide the fate of the famed ocean liner.