PHILADELPHIA — The SS United States Conservancy and Penn Warehousing have settled a longstanding rent dispute, paving the way for a Florida county to transform the historic ocean liner into the world’s largest artificial reef.
A federal judge previously ruled that the SS United States Conservancy had until September 12 to submit plans for relocating the 1,000-foot ocean liner, known for holding the transatlantic speed record for over 70 years. The deadline lapsed as the conservancy filed a lawsuit against Penn Warehousing, alleging interference in its attempts to sell the ship.
Earlier this month, the conservancy reached a tentative agreement with Okaloosa County in Florida, contingent on the resolution of their rent dispute through court-sponsored mediation. The settlement of that dispute was announced recently, marking a significant milestone.
On Saturday, conservancy and county officials held a title transfer ceremony at the pier where the ship is docked, although the agreement is still subject to final approval from a federal judge.
Plans by Okaloosa officials involve sinking the ship to create a unique diving attraction, becoming a key addition to the county’s more than 500 artificial reefs. Supporters anticipate that this initiative could generate millions in annual tourism revenue for local businesses such as scuba shops, charter fishing services, and hotels.
“You will be rightly honored, cherished, and loved in a new home and in a new dimension,” a conservancy board member expressed in a heartfelt farewell to the ship. “You will no longer be sailing the seas, but you will be surrounded and caressed by them.”
The deal to acquire the ship is expected to exceed $10 million, and the entire process of cleaning, transporting, and sinking the vessel is anticipated to span at least 1.5 years.
The rent dispute arose in August 2021 when Penn Warehousing decided to double the ship’s daily dockage fees to $1,700, a hike the conservancy rejected. Penn Warehousing sought to replace the ship with a commercial client to support local jobs and tax revenue.
When the conservancy continued paying its previous rate established in 2011, Penn Warehousing terminated the lease in March 2022. A trial was held in January, where the judge encouraged both parties to seek a settlement rather than relying on her ruling.
Ultimately, the judge determined that the conservancy’s non-payment of the increased rate did not constitute a contract breach or warrant damages. However, she ruled that the berthing agreement could be terminated with reasonable notice under Pennsylvania law.
Originally launched in 1952, the SS United States symbolized American engineering prowess and was designed as both a luxury liner and a military troop carrier. During its maiden voyage, the ship shattered the transatlantic speed record, averaging 36 knots (over 41 mph), and crossed the Atlantic in just three days, 10 hours, and 40 minutes, outperforming the RMS Queen Mary.
After being decommissioned in 1969, the SS United States changed hands among various private owners, but all attempts at redevelopment proved financially unfeasible, leaving the vessel stranded on Philadelphia’s waterfront for years.
