§57105 — Title 46 Shipping | U.S. Code

Summary

The Secretary of Transportation can buy or otherwise get a U.S.-built ship if three things are true: the ship is needed to start, keep, or replace an essential service, route, or line in U.S. foreign commerce as set out under section 50103; it was built in the United States; and the Secretary of the Navy says the ship can be quickly and cheaply converted for Navy or government use in war or a national emergency. The price must be fair and cannot be more than 5 percent above the owner's cost plus any real reconditioning costs, minus depreciation. The owner's cost does not include any construction-differential subsidy or costs for national defense features paid by the Secretary of Transportation. Depreciation uses a 25-year life for dry-cargo or passenger ships and a 20-year life for tankers or liquid bulk carriers. If the ship is not U.S.-documented when bought, it must be documented under U.S. law as soon as possible.

Title 46, §57105

Shipping — Source: USLM XML via OLRC

(a)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;

(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)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)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.

Notes & Related Subsidiaries

Historical and Revision Notes

Revised SectionSource (U.S. Code)Source (Statutes at Large) 5710546 App.:1125.June 29, 1936, ch. 858, title II, § 215, as added June 23, 1938, ch. 600, § 4, 52 Stat. 954; Pub. L. 86–518, § 1, June 12, 1960, 74 Stat. 216; Pub. L. 97–31, § 12(73), Aug. 6, 1981, 95 Stat. 160. 46 App.:1125 note.Pub. L. 86–518, § 9, June 12, 1960, 74 Stat. 217. In subsection (a), the words “and to pay for the same out of his

Construction

fund” are omitted as obsolete because the

Construction

fund established under 46 App. U.S.C. 1116 was impliedly abolished by 46 App. U.S.C. 1119, as amended. In subsection (b), the words “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” are substituted for “less depreciation based upon a twenty-five year life expectancy of the vessel” because of section 9 of Public Law 86–518 (June 12, 1960, 74 Stat. 217), which provided that “Nothing in any amendment made by this Act [including section 1 substituting ‘twenty-five’ for ‘twenty’ in 46 App. U.S.C. 1125] shall operate or be interpreted to change from twenty to twenty-five years the provisions of the Merchant Marine Act, 1936, as amended, relating to the commercial expectancy or period of depreciation of any tanker or other liquid bulk carrier.”

§57105 Acquisition of Vessels for Essential Services, Routes, or Lines

Summary

Title 46, §57105

Notes & Related Subsidiaries

Historical and Revision Notes

Construction

Construction

Citations & Metadata