from 2001 to 2011. auxiliary ships in the
James River near
Fort Eustis in
Newport News, Virginia Vessels with military utility or logistic value are held in retention status and are in a
preservation program that is designed to keep them in the same condition as when they enter the fleet. The internal spaces are dehumidified to slow the corrosion of metal and the growth of mold and mildew. DC power is distributed through anodes to the exterior underwater portions of the hull, creating an electric field that
suppresses corrosion and preserves the surface of the hull. External painting and other cosmetic work are generally deferred since they do not affect the ability to activate and operate the vessel.
MARAD is authorized as the government's disposal agent through the NDRF program for merchant type vessels equal to or greater than 1,500 gross tons. A state agency can file an application to request title to a vessel "as-is where-is" from the NDRF for the purpose of creating an
artificial reef. A total of 51 vessels have been transferred to 10 states under the program including: Texas (12), Florida (10),
North Carolina (7),
Virginia (6),
Alabama (5),
Mississippi (5),
Georgia (2),
South Carolina (2), California (1), and
New Jersey (1). Of the 132 non-retention vessels in the NDRF, there are 117 that are being prepared for disposal. The NDRF program can give and lend historic artifacts to maritime-heritage organizations and transfer entire ships to memorial associations through special legislation. Reserve Fleet Inactive naval ships of merchant design, including amphibious ships but not ships maintained in a mobilization status by MARAD for Military Sealift Command (MSC), may be laid up in the NDRF when overcrowded berthing conditions exist at a Navy Inactive Ship Maintenance Facility. Battleships, cruisers, and aircraft carriers which have been
stricken or those awaiting final disposition may be transferred to MARAD locations for berthing. Initially, these ships will be transferred to MARAD for
caretaking in accordance with the Economy Act of 1932. Ships transferred to the NDRF may be retained in Navy Mobilization Plans and maintained by MARAD under priorities set by the Department of the Navy. If the Navy decides it no longer needs the ship, the Secretary of the Navy strikes the ship from the Naval Vessel Register and transfers the title to MARAD. When possible, MARAD gets first disposition rights, which allows it to convert merchant ships to the Ready Reserve Force (RRF) or to sell the ship for scrapping in connection with the
Merchant Marine Act of 1936, Sec. 508, and use the proceeds to buy more supply ships. ==Fleet reduction==