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Cargoes procured, furnished, or financed by United States Government

Division C · Title XXXV: Maritime Administration · Subtitle C: Other Matters

Plain-language summaryAI

When the Department of Transportation uses federal funds to buy or finance equipment, materials, or commodities for ocean transport, it must try to have all of that cargo carried on U.S.-owned commercial ships, if such ships are available at fair rates. This applies separately to different types of vessels like dry bulk carriers, dry cargo liners, and tankers, and aims to ensure fair participation of U.S. commercial vessels across different regions.

AI-generated from this section’s text — a quick orientation, not a substitute for the full text below. Not legal advice.

Section Text · Sec. 3524.
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(1)

in subsection (a) by striking When the United States Government and inserting Except as provided in subsection (c), when the United States Government ;

(2)

by redesignating subsections (c) through (f) as subsections (d) through (g), respectively; and

(3)

by inserting after subsection (b) the following:

(c) Exception

When the Department of Transportation procures, contracts for, or otherwise obtains for its own account, or provides financing in any way with Federal funds or advances funds or credits, for the furnishing or obtaining of the equipment, materials, or commodities, the Secretary of Transportation or recipient of such financing shall take steps necessary and practicable to ensure that 100 percent of the gross tonnage of the equipment, materials, or commodities (computed separately for dry bulk carriers, dry cargo liners, and tankers) which may be transported on ocean vessels is transported on privately-owned commercial vessels of the United States, as provided under subsection (b), to the extent such vessels are available at fair and reasonable rates for commercial vessels of the United States, in a manner that will ensure a fair and reasonable participation of commercial vessels of the United States in those cargoes by geographic areas.