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Interpretation of 1904 Cargo Preference Act, 10 U.S.C. 2631 (1976)

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Highlights

An advance decision was requested as to whether the 1904 Cargo Preference Act prohibits the Department of Defense from using overseas areas foreign-flag shipping services for shipping military supplies where there is no U.S. vessel available and where use of the foreign-flag shipping services would result in the overall lowest transportation cost to the government. Where service in U.S. vessels is not available for the entire distance between the U.S. port of origin and the overseas destination, the act requires transportation by sea aboard U.S. vessels with transshipment to a foreign land carrier to be preferred over transportation aboard U.S. vessels with transshipment to a foreign-flag ship even though the latter is less costly.

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