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Title 46, ShippingRelease 119-110

§58106 Concerted Discriminatory Activities

Title 46 › Subtitle V — Merchant Marine › Part G — Restrictions and Penalties › CHAPTER 581 — RESTRICTIONS AND PENALTIES › § 58106

Last updated Sep 22, 2026|Official source

Summary

Contractors who get an operating-differential subsidy, and charterers under chapter 575, must not make deals or act together with other U.S. water carriers in a way that is unfair or discriminatory against any U.S. carrier that uses only U.S.-documented vessels on an established trade route to or from a U.S. port. If they break this rule, they cannot get any U.S. government money or subsidies, directly or indirectly. A person whose business or property is harmed can sue in federal district court where the defendant lives, is found, or has an agent. If the person wins, the court will award 3 times the damages and pay costs, including reasonable attorney fees.

Full Legal Text

Title 46, §58106

Shipping, Source: USLM XML via OLRC

(a)Prohibition.—
A contractor receiving an operating-differential subsidy, or a charterer under chapter 575 of this title, may not continue as a party to or conform to an agreement with another carrier by water, or engage in a practice in concert with another carrier by water, that is unjustly discriminatory or unfair to any other citizen of the United States operating a common carrier by water employing only vessels documented under the laws of the United States on an established trade route from and to a United States port.
(b)Government Payment Prohibited.—
No payment or subsidy of any kind may be paid, directly or indirectly, out of funds of the United States Government to a contractor or charterer that has violated subsection (a).
(c)Civil Action.—
A person whose business or property is injured by a violation of subsection (a) may bring a civil action in the district court of the United States for the district in which the defendant resides, is found, or has an agent. If the person prevails, the person shall be awarded—
(1)3 times the damages; and
(2)costs, including reasonable attorney fees.

Legislative History

Notes & Related Subsidiaries

Historical and Revision Notes

Revised SectionSource (U.S. Code)Source (Statutes at Large) 5810646 App.:1227.June 29, 1936, ch. 858, title VIII, § 810, 49 Stat. 2015. In subsection (b), the words “United States Government” are substituted for “United States or any agency of the United States” for consistency and to eliminate unnecessary words. In subsection (c), the words “bring a civil action” are substituted for “sue” for consistency in the revised title. The words “without respect to the amount in controversy” are omitted because section 1331 of title 28 no longer contains a requirement of any particular amount in controversy for jurisdiction of civil actions arising under the laws of the United States. The words “If the person prevails” are added for clarity.

Reference

Citations & Metadata

Citation

46 U.S.C. § 58106

Title 46, Shipping

Last Updated

Sep 22, 2026

Release point: 119-110