Vessel Operating-Differential Subsidy Act of 1987

Vessel Operating-Differential Subsidy Act of 1987 - Amends Title VI of the Merchant Marine Act, 1936 to create a new subtitle on new and amended contracts. Directs the Secretary of Transportation to enter into a liner vessel operating-differential subsidy contract with any person eligible under provisions of this Act who meets certain requirements. Directs the Secretary to amend an existing contract upon application by a contractor under provisions of this Act. Requires a contractor who is a party to two or more existing contracts to amend all contracts. Allows such contractor to consolidate the amended contracts or amend them separately. Declares that contracts entered into or amended under this new subtitle constitute prior legal obligations of the United States. Prohibits conditioning or limiting entering into or amending contracts on receipt of budget authority in advance in appropriations Acts. Prohibits the Secretary from entering into contracts under the existing subtitle relating to operating-differential subsidy contracts after enactment of this new subtitle.

Specifies persons who are eligible to enter into contracts. Sets forth: (1) procedures for entering into and amending contracts; (2) terms and conditions of contracts; and (3) provisions relating to the determination and limitation of payments under contracts and to the making of payments during periods of dispute. Describes qualified vessels.

Changes criteria and establishes procedures for waiver of the prohibition of the payment of operating-differential subsidies with regard to vessels in coastwise or intercoastal trade.

Requires operators, before selling a qualified vessel to a person who is not a U.S. citizen, to offer the Secretary a right of first refusal to acquire the vessel for the National Defense Reserve Fleet.

Changes the criteria for an exception to the exclusion from subsidy payments for a vessel to be operated in an essential service by U.S. citizens, allowing payments to be made when vessels documented under U.S. laws provide less than 50 percent of that service. (Current law allows the exception if the Secretary finds that the service already provided by U.S. vessels is inadequate.) Changes requirements relating to notice and the conducting of public hearings regarding an application to operate a vessel in an essential service served by U.S. citizens either in addition to or concerning an existing service.