§57517 Recovery of Excess Profits

Summary

Charters must say that if, at the end of any calendar year after the charter starts, the charterer’s total voyage profits — after paying the agreed charter hire and the charterer’s fair and reasonable overhead costs — are more than 10 percent a year of the charterer’s capital used in the ship business, the charterer must pay the Secretary of Transportation half of the amount above 10 percent as extra charter hire. Any profit taken this way must not be counted again in later years. The Secretary of Transportation must define the terms "net voyage profit," "fair and reasonable overhead expenses," and "capital necessarily employed," and every bid notice and every charter must show those definitions and the formulas used to calculate them.