Title 46, ShippingRelease 119-110
§57515 Awarding of Charters
Title 46 › Subtitle V — Merchant Marine › Part F — Government-Owned Merchant Vessels › CHAPTER 575 — CONSTRUCTION, CHARTER, AND SALE OF VESSELS › SUBCHAPTER II — CHARTERS › § 57515
Summary
Give the charter to the highest monthly bidder. The Secretary of Transportation may reject any bid if the payment is too low or the bidder fails the qualifications in section 57514. If a top bid is rejected, the Secretary may accept the next bidder, reject all and reoffer, or operate the line. A bidder can ask for a written reason for the rejection.
Full Legal Text
Title 46, §57515
Shipping, Source: USLM XML via OLRC
(a)In General.—
The Secretary of Transportation shall award the charter to the bidder proposing to pay the highest monthly charter hire. However, the Secretary may reject the highest or most advantageous or any other bid if the Secretary considers the charter hire offered too low or determines that the bidder lacks the qualifications required by section 57514 of this title.
(b)Highest Bid Rejected.—
If the Secretary rejects the highest bid, the Secretary may—
(1)award the charter to the next highest bidder; or
(2)reject all bids and either readvertise the line or operate the line until conditions appear more favorable to reoffer the line for private charter.
(c)Reason for Rejection.—
On request of a bidder, the reason for rejection shall be stated in writing to the bidder.
Legislative History
Notes & Related Subsidiaries
Historical and Revision Notes
Revised SectionSource (U.S. Code)Source (Statutes at Large) 5751546 App.:1196(b) (1st sentence related to authority).June 29, 1936, ch. 858, title VII, §§ 706(b) (1st sentence related to authority), 707, 49 Stat. 2009; Pub. L. 97–31, § 12(108), (109), Aug. 6, 1981, 95 Stat. 163. 46 App.:1197. In subsection (a), the words “if the Secretary considers the charter hire offered too low” are substituted for “if, in the Secretary’s discretion, the charter hire offered is deemed too low” to eliminate unnecessary words. The words “lacks the qualifications required by section 57514 of this title” are substituted for “lacks sufficient capital, credit, or experience to operate successfully the line” to avoid repeating the qualifications in more than one place.
Reference
Citations & Metadata
Citation
46 U.S.C. § 57515
Title 46, Shipping
Last Updated
Sep 22, 2026
Release point: 119-110