§57517 Recovery of excess profits

Summary

If, at any calendar-year end after a charter begins, cumulative net voyage profit — after paying reserved charter hire and fair overhead for running the vessel — is more than 10% a year of the charterer’s capital necessarily employed, the charterer must pay half the excess to the Secretary. Those profits aren't counted again in later years. Secretary must define the terms and put formulas in bids and charters: net voyage profit; fair and reasonable overhead expenses; capital necessarily employed.