United States Merchant Marine Utilization and Preference Act of 1992

United States Merchant Marine Utilization and Preference Act of 1992 - Requires Department of Defense (DOD) cargoes to be transported by water in the following order of priority under conditions other than full or partial mobilization declared by the President: (1) use of privately owned U.S. flag vessels that operate in U.S. liner or tramp trades and not chartered by the Government; and (2) time or voyage charter of suitable privately owned U.S. flag vessels operating in liner service providing partial or total space available or in tramp service if they are voluntarily made available to DOD; (3) vessels in the nucleus fleet; and (4) foreign flag vessels.

Limits the use of time and voyage charters to a minimum necessary to meet requirements which, barring reasonable foresight, can not be met by U.S. flag liner or tramp operators. Requires the written approval of the Secretary of Transportation for use of vessels in the nucleus fleet or foreign-flag vessels (limited to a single voyage as necessary to meet urgent military requirements).

Applies the tariff filed by a person with the Federal Maritime Commission under the Shipping Act of 1916 or of 1984 to transportation of DOD cargo on any U.S. flag-vessel that is operated by that person, with specified exceptions.

Makes the Office of the Chief of Naval Operations solely responsible in DOD for obtaining, providing, operating, and controlling Government-owned or chartered vessels: (1) to transport DOD cargoes in areas not served by privately owned U.S. flag merchant vessels; and (2) for purposes of any partial or full mobility conducted for any reason declared by the President.

Makes the Military Sealift Command the sole manager for ocean transportation of DOD cargoes.

States that the purpose of any ocean transportation provided by DOD is to support and augment persons who provide transportation by water in commercial service to the extent those persons can not provide the vessels or services required by DOD.

Prohibits DOD from engaging in competition with private persons in the provision of transportation by water in commercial service other than as provided under this Act.

Directs the Secretary of Defense to establish and maintain at all times under the exclusive custody, jurisdiction, and control of DOD, a fleet of vessels to meet military requirements to be known as the "nucleus fleet." Describes the composition and use of such fleet.

Makes any change in the composition of the nucleus fleet from the numbers and types of vessels specified in this Act ineffective unless: (1) a request for such change is submitted by the Secretaries of the Navy or of Defense; (2) the change is approved by the Secretary of Defense; and (3) such change is reported to the Congress with supporting rationale.

Places a vessel in the nucleus fleet in reduced operating status if it is inactive for a 30-day period. Provides that if a federally-owned vessel in such fleet is inactive for 120 days it shall be deactivated and placed in reserve or disposed of, as considered appropriate by the Secretary of Defense. Terminates the contract on the earliest possible date under which a privately owned vessel is chartered if it is inactive for 120 days.

Prescribes guidelines for the inclusion of additional numbers and types of vessels in the nucleus fleet under conditions of full mobilization. Requires the Secretary of Defense, during periods of full or partial mobilization, to: (1) continuously review the number of merchant vessels under the control of DOD; (2) determine if any of the vessels are excessive to the department's needs; and (3) transfer excessive vessels to the Secretary of Transportation.

States that, upon the termination of hostilities or in the event of a partial demobilization, the nucleus fleet shall be reduced to the numbers and types of vessels in the fleet before full mobilization.

Releases any vessels in the reduced fleet retained as part of the active or laid-up permanent operating forces of the Department of the Navy from control by DOD in the following order of priority: (1) chartered foreign-flag vessels; (2) U.S. flag vessels that are chartered from private owners; and (3) federally-owned merchant vessels that are desired for sale or charter by U.S. citizens for U.S. flag operation in commercial service (deemed to be war-built vessels).

Amends the Merchant Ship Sales Act of 1946 to authorize the use of vessels in the Ready Reserve Force component of the National Defense Reserve Fleet in peacetime for routine movements of cargo as part of military exercises only if such use does not compete with U.S. flag commercial vessel operators.

Requires a vessel in such Ready Reserve Force component that has been activated to meet military sealift requirements for a national emergency to be deactivated in an expeditious manner if such requirements cease.