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46 U.S.C. § 57105 — Acquisition of vessels for essential services, routes, or lines

Federal law — U.S. Code and appendices · legal_authorities

46 U.S.C. § 57105 — Acquisition of vessels for essential services, routes, or lines

**(a) In General.—** The Secretary of Transportation may acquire a vessel, by purchase or otherwise, if— (1) the Secretary considers the vessel necessary to establish, maintain, improve, or serve as a replacement on an essential service, route, or line in the foreign commerce of the United States, as determined under [section 50103 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title46-section50103&num=0&edition=prelim); (2) the vessel was constructed in the United States; and (3) the Secretary of the Navy has certified to the Secretary of Transportation that the vessel is suitable for economical and speedy conversion into a naval or military auxiliary or otherwise suitable for use by the United States Government in time of war or national emergency. **(b) Price.—** The price paid for the vessel shall be based on a fair and reasonable valuation. However, the price may not exceed by more than 5 percent the cost of the vessel to the owner (excluding any construction-differential subsidy and the cost of national defense features paid by the Secretary of Transportation) plus the actual cost previously expended for reconditioning, less depreciation based on a 25-year life for a dry-cargo or passenger vessel and a 20-year life for a tanker or other liquid bulk carrier vessel. **(c) Documentation.—** A vessel acquired under this section that is not documented under the laws of the United States at the time of acquisition shall be so documented as soon as practicable.

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Source location: Title 46, Chapter 571, § 57105; chapter-571-general-authority.md

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Federal law — U.S. Code and appendices · legal_authorities

46 U.S.C. § 50103 — Determinations of essential services

**(a) Essential Services, Routes, and Lines.—** (1) **In general.—** — The Secretary of Transportation shall investigate, determine, and keep current records of the ocean services, routes, and lines from ports in the United States, or in the territories and possessions of the United States, to foreign markets, which the Secretary determines to be essential for the promotion, development, expansion, and maintenance of the foreign commerce of the United States. In making such a determination, the Secretary shall consider and give due weight to— (A) the cost of maintaining each line; (B) the probability that a line cannot be maintained except at a heavy loss disproportionate to the benefit to foreign trade; (C) the number of voyages and types of vessels that should be employed in a line; (D) the intangible benefit of maintaining a line to the foreign commerce of the United States, the national defense, and other national requirements; and (E) any other facts and conditions a prudent business person would consider when dealing with the person’s own business. (2) **Saint lawrence seaway.—** — For purposes of paragraph (1), the Secretary shall establish services, routes, and lines that reflect the seasonal closing of the Saint Lawrence Seaway and provide for alternate routing of vessels through a different range of ports during that closing to maintain continuity of service on a year-round basis. **(b) Bulk Cargo Carrying Services.—** The Secretary shall investigate, determine, and keep current records of the bulk cargo carrying services that should be provided by vessels of the United States (whether or not operating on particular services, routes, or lines) for the promotion, development, expansion, and maintenance of the foreign commerce of the United Sta

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Federal law — U.S. Code and appendices · legal_authorities

46 U.S.C. § 53101 — Definitions

In this chapter: (1) **Bulk cargo.—** — The term “bulk cargo” means cargo that is loaded and carried in bulk without mark or count. (2) **Contractor.—** — The term “contractor” means an owner or operator of a vessel that enters into an operating agreement for the vessel with the Secretary under section 53103. (3) **Fleet.—** — The term “Fleet” means the Maritime Security Fleet established under section 53102(a). (4) **Foreign commerce.—** — The term “foreign commerce” means— (A) commerce or trade between the United States, its territories or possessions, or the District of Columbia, and a foreign country; and (B) commerce or trade between foreign countries. (5) **Participating fleet vessel.—** — The term “participating fleet vessel” means any vessel that— (A) on October 1, 2015— (i) meets the requirements of paragraph (1), (2), (3), or (4) of section 53102(c); and (ii) is less than 20 years of age if the vessel is a tank vessel, or is less than 25 years of age for all other vessel types; and (B) on December 31, 2014, is covered by an operating agreement under this chapter. (6) **Person.—** — The term “person” includes corporations, partnerships, and associations existing under or authorized by the laws of the United States, or any State, Territory, District, or possession thereof, or of any foreign country. (7) **Product tank vessel.—** — The term “product tank vessel” means a double hulled tank vessel capable of carrying simultaneously more than 2 separated grades of refined petroleum products. (8) **Secretary.—** — The term “Secretary” means the Secretary of Transportation. (9) **Tank vessel.—** — The term “tank vessel” has the meaning that term has under [section 2101 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-

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Federal law — U.S. Code and appendices · legal_authorities

46 U.S.C. § 57105 — Acquisition of vessels for essential serv-

Page 512 TITLE 46—SHIPPING § 57104 Stat. 1571; Pub. L. 118–31, div. C, title XXXV, § 3514(j)(5), Dec. 22, 2023, 137 Stat. 812.) HISTORICAL AND REVISION NOTES Revised Section Source (U.S. Code) Source (Statutes at Large) 57103 .......... 46 App.:1158(b). June 29, 1936, ch. 858, title V, § 508(b), as added Pub. L. 108–136, title XXXV, § 3512(2), Nov. 24, 2003, 117 Stat. 1789. In subsection (a), before paragraph (1), the words ‘‘Notwithstanding section 1160(j) of this title’’ are omit- ted as unnecessary because section 46 App. U.S.C. 1160(j) is restated in section 57101 of the revised title and that section contains an exception which includes this section. In paragraph (1), the words ‘‘Common- wealth, or possession of the United States’’ and ‘‘or the District of Columbia’’ are omitted as unnecessary be- cause of the definition of ‘‘State’’ in chapter 1 of the re- vised title. Editorial Notes AMENDMENTS 2023—Pub. L. 118–31, § 3514(j)(5)(A), struck out ‘‘non- retention’’ before ‘‘vessels’’ in section catchline. Subsec. (a). Pub. L. 118–31, § 3514(j)(5)(B), struck out ‘‘of insufficient value to warrant its further preserva- tion’’ after ‘‘obsolete vessel’’. 2012—Pub. L. 112–213 substituted ‘‘Donation of non- retention vessels in the National Defense Reserve Fleet’’ for ‘‘Sale of obsolete vessels in National Defense Reserve Fleet’’ in section catchline. § 57104. Acquisition of vessels from sale of obso- lete vessels (a) IN GENERAL.—The Secretary of Transpor- tation may acquire suitable documented vessels with amounts in the Vessel Operations Revolv- ing Fund derived from the sale of obsolete ves- sels in the National Defense Reserve Fleet. (b) VALUATION.—The acquired and obsolete vessels shall be valued at their scrap value in domestic or foreign

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