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Title 46 — ShippingRelease 119-73

§58103 Employing another person as managing or operating agent

Title 46 › Subtitle Subtitle V— - Merchant Marine › Part Part G— - Restrictions and Penalties › Chapter CHAPTER 581— - RESTRICTIONS AND PENALTIES › § 58103

Last updated Apr 6, 2026|Official source

Summary

If a contractor has an operating-differential subsidy contract or a chapter 575 contract, they must get the Secretary of Transportation’s written permission before hiring someone else to manage or operate for them or before chartering a ship to be run by another person. If they charter without that permission, the person who operates the chartered ship must follow all the rules of the subtitle and the subsidy program, including limits on profits and on salaries.

Full Legal Text

Title 46, §58103

Shipping — Source: USLM XML via OLRC

(a)Except with the written consent of the Secretary of Transportation, a contractor holding a contract under the operating-differential subsidy program or under chapter 575 of this title may not—
(1)employ another person as the managing or operating agent of the operator; or
(2)charter a vessel, on which an operating-differential subsidy is to be paid, for operation by another person.
(b)If a charter prohibited by this section is made, the person operating the chartered vessel is subject to all the provisions of this subtitle and the operating-differential subsidy program, including limitations of profits and salaries.

Legislative History

Notes & Related Subsidiaries

Historical and Revision Notes

Revised SectionSource (U.S. Code)Source (Statutes at Large) 5810346 App.:1223(d).June 29, 1936, ch. 858, title VIII, § 805(d), 49 Stat. 2013; June 23, 1938, ch. 600, §§ 36, 37, 52 Stat. 963; Pub. L. 91–603, § 4(e), Dec. 31, 1970, 84 Stat. 1675; Pub. L. 97–31, § 12(122), Aug. 6, 1981, 95 Stat. 164; Pub. L. 104–239, § 4(b)(2), Oct. 8, 1996, 110 Stat. 3131. In subsection (a), the words “contractor holding a contract under the operating-differential subsidy program or under chapter 575 of this title” are substituted for “contractor holding a contract authorized under part A of subchapter VI or VII of this chapter” for the reasons explained under section 58101.

Reference

Citations & Metadata

Citation

46 U.S.C. § 58103

Title 46 — Shipping

Last Updated

Apr 6, 2026

Release point: 119-73