What is US-Flag Carrier Requirement?
Fly America Act & Cargo Preference
Federal rules generally require government-funded transportation to move on U.S.-flag carriers — the Fly America Act for air travel and the Cargo Preference Act for ocean shipments. The intent is to support the U.S. transportation industrial base. Using a foreign carrier without a qualifying exception makes the cost unallowable.
This requirement shapes routing and cost on any contract that moves people or cargo, and is a common audit and compliance pitfall.
In FORGEFORGE flags non-U.S.-flag routing against the requirement so it's resolved before a shipment — or a cost claim — is committed.
Common questions
Only under specific exceptions — such as no U.S.-flag service available, or a qualifying code-share — and the exception must be documented. Otherwise the transportation cost is unallowable.