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Title 46 — ShippingRelease 119-73not60

§57104 Acquisition of Vessels From Sale of Obsolete Vessels

Title 46 › Subtitle Subtitle V— Merchant Marine › Part F— Government-Owned Merchant Vessels › Chapter 571— GENERAL AUTHORITY › § 57104

Last updated Apr 5, 2026|Official source

Summary

The Secretary of Transportation may buy suitable documented ships using money in the Vessel Operations Revolving Fund that came from selling obsolete ships in the National Defense Reserve Fleet. Bought and sold ships must be valued at their scrap value on the transaction date, and that value must fairly allow for the cost to move the ship to the scrapyard. Costs to put a bought ship into lay-up can be paid from the Fund. A ship sold from the Fleet may be scrapped in an approved foreign market without getting extra approval to transfer it to someone who is not a U.S. citizen.

Full Legal Text

Title 46, §57104

Shipping — Source: USLM XML via OLRC

(a)The Secretary of Transportation may acquire suitable documented vessels with amounts in the Vessel Operations Revolving Fund derived from the sale of obsolete vessels in the National Defense Reserve Fleet.
(b)The acquired and obsolete vessels shall be valued at their scrap value in domestic or foreign markets as of the date of the acquisition for or sale from the Fleet. However, the value assigned to those vessels shall be determined on the same basis, with consideration given to the fair value of the cost of moving the vessel sold from the Fleet to the place of scrapping.
(c)Costs incident to the lay-up of the vessel acquired under this section may be paid from amounts in the Fund.
(d)A vessel sold from the Fleet under this section may be scrapped in an approved foreign market without obtaining additional separate approval from the Secretary to transfer the vessel to a person not a citizen of the United States.

Legislative History

Notes & Related Subsidiaries

Historical and Revision Notes

Revised SectionSource (U.S. Code)Source (Statutes at Large) 5710446 App.:1160(i).June 29, 1936, ch. 858, title V, § 510(i), as added Pub. L. 86–575, July 5, 1960, 74 Stat. 312; Pub. L. 89–254, § 1, Oct. 10, 1965, 79 Stat. 980; Pub. L. 91–469, § 13, Oct. 21, 1970, 84 Stat. 1022; Pub. L. 93–605, § 1, Jan. 2, 1975, 88 Stat. 1965; Pub. L. 95–177, Nov. 15, 1977, 91 Stat. 1368; Pub. L. 97–31, § 12(91), Aug. 6, 1981, 95 Stat. 161; Pub. L. 101–595, title VII, § 704, Nov. 16, 1990, 104 Stat. 2994. In subsection (b), the words “vessel sold from the Fleet” are substituted for “traded-out vessel” for clarity and consistency. In subsection (d), the words “without obtaining additional separate approval from the Secretary to transfer the vessel to a person not a citizen of the United States” are substituted for “Notwithstanding the provisions of section 808 and 835 of this Appendix” for clarity and to avoid the cross references.

Reference

Citations & Metadata

Citation

46 U.S.C. § 57104

Title 46 — Shipping

Last Updated

Apr 5, 2026

Release point: 119-73not60