12. Cargo
A.5 CARGO PREFERENCE REQUIREMENTS
46 U.S.C. § 55305; 46 C.F.R. part 381
The Cargo Preference Act of 1954 requirements applies to all contracts involved with the transport of
equipment, material, or commodities by ocean vessel.
Cargo Preference - Use of United States-Flag Vessels
The contractor agrees:
a. to use privately owned United States-Flag commercial vessels to ship at least 50 percent of the gross
tonnage (computed separately for dry bulk carriers, dry cargo liners, and tankers) involved, whenever
shipping any equipment, material, or commodities pursuant to the underlying contract to the extent
such vessels are available at fair and reasonable rates for United States-Flag commercial vessels;
b. to furnish within 20 working days following the date of loading for shipments originating within the
United States or within 30 working days following the date of loading for shipments originating outside
the United States, a legible copy of a rated, "on-board" commercial ocean bill-of-lading in English for
each shipment of cargo described in the preceding paragraph to the Division of National Cargo, Office of
Market Development, Maritime Administration, Washington, DC 20590 and to the FTA recipient
(through the contractor in the case of a subcontractor's bill-of-lading.); and
c. to include these requirements in all subcontracts issued pursuant to this contract when the
subcontract may involve the transport of equipment, material, or commodities by ocean vessel.
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