§ 280.11 - Example of calculation and sample report.

(a) Example of calculation. The provisions of this part may be illustrated by the following example:

Company A operates several vessels engaged in carrying cargo, passengers and mail from the west coast of the United States outbound to foreign ports in the Far East, cargo between the foreign ports in the Far East, and cargo from foreign ports in the Far East inbound to the west coast of the United States. Company A's operation on this service is subsidized under an ODS agreement made in accordance with §280.3. Total annual subsidy payable for Company A's service is $1 million. In 1976 Company A's total gross revenue was $10 million, computed as follows:

Outbound gross freight revenue	$4,000,000
Inbound gross freight revenue	4,000,000
Wayport gross freight revenue	1,000,000
Miscellaneous gross revenue	1,000,000
Total gross revenue	10,000,000

Of the $4 million outbound gross freight revenue $1,600,000, or 40 percent, was earned from carriage of competitive cargo. Of the $4 million inbound gross freight revenue $1,200,000, or 30 percent, was earned from carriage of competitive cargo. Accordingly, total ODS payable to Company A for voyages terminated during the calendar year 1976 is reduced by $240,000, from $1 million to $760,000, as follows:

outbound leg of service
ODS payable	$400,000
(Outbound freight revenue, $4 million, divided by total gross revenue, $10 million, times total ODS payable for service, $1 million.)
Percent reduction of ODS payable	20%
(40% carriage of competitive cargo requires 20% reduction in ODS payable.)
Amount of reduction in ODS payable	$80,000
(20% of $400,000.)
inbound leg of service
ODS payable	$400,000
(Inbound freight revenue, $4 million, divided by total gross revenue, $10 million, times total ODS payable for service, $1 million.)
Percent reduction of ODS payable	40%
(30% carriage of competitive cargo requires 40% reduction in ODS payable.)
Amount of reduction in ODS payable	$160,000
Total amount of reduction in ODS payable	$240,000
($80,000 plus $160,000.)
Total ODS payable for service in 1976 (after reduction)	$760,000
($1 million minus $240,000.)

(b) Sample report. Reports providing the information required by §§280.7 and 280.9 shall be made in the following form:

MA—819 (company)

Report of Revenues Earned for ___¹Pursuant to 46 CFR Part 280

	Trade Route No.		Trade Route No.		Trade Route No.
	Dollars	Percent	Dollars	Percent	Dollars	Percent
Outbound freight revenue:
Military and Premium Rated Civilian
Competitive
Total Outbound Freight Revenue		100		100		100
Inbound freight revenue:
Military and premium rated civilian
Competitive
Total inbound freight revenue		100		100		100
Wayport freight revenue
Miscellaneous revenue
Total gross revenue

¹Enter Calendar Year _ or Cumulative Quarterly Period Ending __ as applicable for the report being filed.