§56502 — Title 46 Shipping | U.S. Code

Summary

The Secretary of Transportation can, on a written application, change a carrier’s duties and set up upkeep for an essential ship under this chapter if, after any investigation the Secretary thinks is needed, three things are true: (1) the ship’s assigned service, route, or line is either unlawful under the Neutrality Act of 1939 (22 U.S.C. 441 et seq.) or a proclamation under that Act, or it would hurt the ship’s availability for national defense and commerce; (2) current law makes it not feasible to use the ship in any other foreign or domestic trade service (except temporary or emergency use under section 56503(b)(5)); and (3) because of the Neutrality Act or vessel withdrawal for national defense, the applicant is not earning and will not earn a reasonable return on the capital used in the business. Any changes and maintenance arrangements last only as long as those conditions continue to exist.

Title 46, §56502

Shipping — Source: USLM XML via OLRC

(a)On written application, the Secretary of Transportation may adjust obligations and arrange for maintenance of an essential vessel as provided in this chapter if the Secretary determines, after any investigation or proceeding the Secretary considers desirable, that—

(1)the operation of the vessel in the service, route, or line to which it is assigned under this subtitle, or in which it otherwise would be operated, is not—

(A)lawful under the Neutrality Act of 1939 (22 U.S.C. 441 et seq.) or a proclamation issued under that Act; or

(B)compatible with maintaining the availability of the vessel for national defense and commerce;

(2)it is not feasible under existing law to employ the vessel in any other service or operation in foreign or domestic trade (except temporary or emergency operation under section 56503(b)(5) of this title); and

(3)the applicant, because of the restrictions of the Neutrality Act of 1939 (22 U.S.C. 441 et seq.) or the withdrawal of vessels for national defense under paragraph (1), is not earning or will not earn a reasonable return on the capital necessarily employed in its business.

(b)Adjustments and arrangements under subsection (a) shall continue in effect only as long as the circumstances described in subsection (a) continue to exist.

Notes & Related Subsidiaries

Historical and Revision Notes

Revised SectionSource (U.S. Code)Source (Statutes at Large) 5650246 App.:1242a(b), (e).June 29, 1940, ch. 442, subdivs. (b), (e), 54 Stat. 684, 686; Pub. L. 97–31, § 12(132), Aug. 6, 1981, 95 Stat. 165. The text of 46 App. U.S.C. 1242a(b) (1st sentence) is omitted as surplus. The text of 46 App. U.S.C. 1242a(e) is omitted as obsolete.

Editorial Notes

References in Text

The Neutrality Act of 1939, referred to in subsec. (a)(1)(A), (3), is act Nov. 4, 1939, ch. 2, 54 Stat. 4, which is classified generally to subchapter II (§ 441 et seq.) of chapter 9 of Title 22, Foreign Relations and Intercourse. For complete classification of this Act to the Code, see

Short Title

note set out under section 441 of Title 22 and Tables.

§56502 Adjusting obligations and arranging maintenance