Judge temporarily suspends deadline to move SSUS; mediation continues amid rent dispute
PHILADELPHIA (WPVI) -- A federal judge on Thursday temporarily suspended the deadline to move the SS United States out of Philadelphia.
(The video in the player above is from previous coverage.)
The order came amid a court-ordered mediation to resolve a years-old rent dispute between the SS United States Conservancy and the ship's landlord, Penn Warehousing.
Both parties have been negotiating since last week's court filings. The SSUS claimed to have evidence that Penn Warehousing was trying to block efforts to relocate. Penn Warehousing said the involved parties haven't dealt in good faith to facilitate the removal of the ship.
READ MORE: Conservancy, landlord headed to mediation amid ongoing rent dispute for historic SS United States
"The Conservancy's efforts in the days ahead will continue to center around conducting good faith negotiations and ensuring that the legacy of America's Flagship endures and inspires for future generations," the SS United States Conservancy said in a statement on Friday. "We will continue to work tirelessly to chart the best possible forward course for the SS United States given the constraints placed upon us by this litigation."
The conservancy has been in talks with Okaloosa County, Florida, that wants to acquire the ship and turn it into the largest artificial reef in the world. Those plans were put on hold earlier this month when Penn Warehousing asked Okaloosa County for a $3 million payment to stay past the deadline.
ALSO SEE: Plan to turn SS United States into world's largest artificial reef off Florida hits a snag
The rent dispute stems from an August 2021 decision by Penn Warehousing to double the ship's daily dockage to $1,700, an increase the conservancy refused to accept. The firm has said through its attorneys that it wants to regain access to the berth so it can replace the ship with a commercial customer that will provide jobs and tax revenues to the city.
When the conservancy continued to pay its 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 bench trial in January but also encouraged the two sides to reach a settlement instead of leaving it up to her.
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She ultimately ruled that the conservancy's failure to pay the new rate did not amount to a contract breach or entitle Penn Warehousing to damages. However, she found that under Pennsylvania contract law, the berthing agreement is terminable at will with reasonable notice.
Christened in 1952, the 1,000-foot ocean liner was once considered a beacon of American engineering, doubling as a military vessel that could carry thousands of troops. On its maiden voyage in 1952, it shattered the transatlantic speed record in both directions, when it reached an average speed of 36 knots, or just over 41 mph (66 kph), The Associated Press reported from aboard the ship.
On that voyage, the ship crossed the Atlantic in three days, 10 hours and 40 minutes, besting the RMS Queen Mary's time by 10 hours. To this day, the SS United States holds the transatlantic speed record for an ocean liner.
It became a reserve ship in 1969 and later bounced to various private owners who hoped to redevelop it but eventually found their plans to be too expensive or poorly timed.
It has loomed for years on south Philadelphia's Delaware waterfront.
The Associated Press contributed to this report.
