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46 U.S.C. § 50103 — Determinations of essential services
Federal law — U.S. Code and appendices · legal_authorities
**(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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Source location: Title 46, Chapter 501, § 50103; chapter-501-policy-studies-and-reports.md
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**(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 States and the national defense or other national requirements.
**(c) Types of Vessels.—** The Secretary shall investigate, determine, and keep current records of the type, size, speed, method of propulsion, and other requirements of the vessels, including express-liner or super-liner vessels, that should be employed in—
(1) the services, routes, or lines described in subsection (a), and the frequency and regularity of the voyages of the vessels, with a view to furnishing adequate, regular, certain, and permanent service; and
(2) the bulk cargo carrying services described in subsection (b).
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Federal law — U.S. Code and appendices · legal_authorities
**(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.
Source: Supplied U.S. Code snapshot — release unconfirmed · 46 U.S.C. § 57105
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Federal law — U.S. Code and appendices · legal_authorities
**(a) In General.—** If the Secretary of Transportation finds that a trade route determined to be essential under [section 50103 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title46-section50103&num=0&edition=prelim) cannot be successfully developed and maintained and the Secretary’s replacement program cannot be achieved under private operation of the trade route by a citizen of the United States with vessels documented under chapter 121 of this title, without further aid by the United States Government in addition to the financial aid authorized under title V of the Merchant Marine Act, 1936, the Secretary, without advertisement or competition, may—
(1) have constructed, in private shipyards or in navy yards, vessels of the types necessary for the trade route; and
(2) demise charter those new vessels to the operator of vessels of the United States established on the trade route.
**(b) Amount of Charter Hire.—**
(1) **In general.—** — The annual charter hire under subsection (a) shall be at least 4 percent of the price (referred to in this section as the “foreign cost”) at which the vessel would be sold if constructed under title V of the Merchant Marine Act, 1936, plus—
(A) a percentage of the depreciated foreign cost computed annually determined by the Secretary of the Treasury, taking into consideration the current average market yield on outstanding marketable obligations of the Government with remaining periods to maturity comparable to the term of the charter, adjusted to the nearest one-eighth percent; and
(B) an allowance adequate in the judgment of the Secretary of Transportation to cover administrative costs.
(2) **Depreciation.—** — Depreciation under paragraph (1)(A) shall be based on—
(A) a 25-year life for dry-
Source: Supplied U.S. Code snapshot — release unconfirmed · 46 U.S.C. § 57531
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Federal law — U.S. Code and appendices · legal_authorities
Page 327
TITLE 46—SHIPPING
§ 50104
Editorial Notes
AMENDMENTS
2009—Subsec. (a)(4). Pub. L. 111–84 inserted ‘‘con-
structed in the United States’’ after ‘‘vessels’’.
§ 50102. Survey of merchant marine
(a) IN GENERAL.—The Secretary of Transpor-
tation shall survey the merchant marine of the
United States to determine whether replace-
ments and additions are required to carry out
the objectives and policy of section 50101 of this
title. The Secretary shall study, perfect, and
adopt a long-range program for replacements
and additions that will result, as soon as prac-
ticable, in—
(1) an adequate and well-balanced merchant
fleet, including vessels of all types, that will
provide shipping service essential for main-
taining the flow of foreign commerce by ves-
sels designed to be readily and quickly con-
vertible into transport and supply vessels in a
time of national emergency;
(2) ownership and operation of the fleet by
citizens of the United States insofar as prac-
ticable;
(3) vessels designed to afford the best and
most complete protection for passengers and
crew against fire and all marine perils; and
(4) an efficient capacity for building and re-
pairing vessels in the United States with an
adequate number of skilled personnel to pro-
vide an adequate mobilization base.
(b) COOPERATION WITH SECRETARY OF NAVY.—
In carrying out subsection (a)(1), the Secretary
of Transportation shall cooperate closely with
the Secretary of the Navy as to national defense
requirements.
(Pub. L. 109–304, § 8(b), Oct. 6, 2006, 120 Stat. 1557.)
HISTORICAL AND REVISION NOTES
Revised
Section
Source (U.S. Code)
Source (Statutes at Large)
50102 ..........
46 App.:1120.
June 29, 1936, ch. 858, title
II, § 210, 49 Stat. 1989; Pub.
L. 91–469, §§ 3, 35(a), Oct.
21, 19
Source: Supplied 2024 U.S. Code historical extraction · 46 U.S.C. § 50103
Stored review status: historical_2024_not_currentness_verified. Same stored citation; legal effect and authority still require review.