Passenger Vessel Association Opposes Bill Allowing Foreign-Flagged Ships to Compete with U.S. Passenger Vessels

Saturday, July 23, 2011

Alexandria, VA:The Board of Directors of the Passenger Vessel Association (PVA) yesterday unanimously voted to oppose enactment of a bill in the U.S. House of Representatives that would allow foreign-flagged passenger vessels to directly compete with their American-flagged counterparts.   The PVA Board action reaffirmed support of the Passenger Vessel Services Act (PVSA) which reserves the commercial carriage of passengers between U.S. ports for vessels that are U.S.-flagged, U.S.-owned, U.S.-built, and U.S.-crewed.  The legislation (H.R. 2460) was introduced by Congressman Blake Farenthold of Texas on July 7, 2011.  
 
The proposed Farenthold exception to the PVSA would apply if the duration of the foreign vessel’s voyage is more than 24 hours and if some part of the voyage occurs on the high seas.  The foreign vessel could not operate as a ferry.  However, the bill would enable a foreign cruise ship crewed by foreign nationals to compete directly on the same routes served by small and large U.S.-flagged overnight cruise vessels operated by companies that are fully subject to U.S. labor, environmental, social, and tax laws and that hire American citizens as crew members.   
 
Crews on foreign-flagged passenger vessels are made up almost exclusively of foreign nationals.  Many domestic U.S. laws (such as the statute setting minimum wage and overtime requirements) don’t cover crew members of foreign passenger vessels, even when they sail into U.S. ports.  Also, most revenues of foreign-flagged passenger vessels are not subject to federal income taxes.  
 
Under the bill, the foreign vessel would not have to be owned by a corporation controlled by U.S. citizens, as are U.S. passenger vessels.  The foreign vessel would not have to be built in an American shipyard by American shipyard workers (as a qualified U.S. passenger vessel must be).  Nor would the foreign vessel be mandated to have any repairs or maintenance performed in U.S. shipyards, as U.S. passenger vessels must do.
 
PVA’s vessel-operating members, its associate members who design or build U.S. passenger vessels, and the U.S. citizen employees of these companies would be economically harmed by the enactment of H.R. 2460.
 

The full text of the resolution approved by the PVA Board of Directors follows:
         

“The Passenger Vessel Association (PVA) supports the preservation, without amendment, of the Passenger Vessel Services Act.  This “cabotage” law reserves the commercial carriage of passengers between U.S. ports for vessels that are U.S.-flagged, U.S.-owned, U.S.-built, and U.S.-crewed. It prevents unfair competition by foreign-flagged passenger vessels that do not have to comply with U.S. laws, including tax laws.  Therefore, PVA opposes enactment of H.R. 2460, sponsored by Congressman Farenthold.”

 
About the Passenger Vessel Association
The Passenger Vessel Association is the national association representing the interests of owners and operators of dinner cruise vessels, sightseeing and excursion vessels, car and passenger ferries, gaming vessels, private charter boats, whale watching and eco-tour vessels, day-sailers and windjammer sailing vessels, overnight cruise ships and amphibious DUKW. PVA members operate U.S. Coast Guard certificated, Canadian Coast Guard or state inspected vessels. The passenger vessel industry carries more than 200 million passengers each year. Visit PVA at: www.passengervessel.com.


Maritime Reporter May 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Solarworld Wants Duties on Chinese Solar Goods in U.S. Extended

German solar manufacturer SolarWorld will apply to the United States for an extension of duties on Chinese panel imports that are due to end this year, weekly Euro am Sonntag said.

Sea Urchin Haven Disturbed by Oil Spill

Stephanie Mutz makes a living plucking sea urchins from the Santa Barbara coast and selling the prickly treasure to upscale restaurants in Southern California.

5 Tunisian Migrants Die in Shipwreck

At least five Tunisian migrants died on Saturday when their boat sailing to Italy capsized off the Tunisian coast, officials said. "A migrant boat carrying

Passenger Vessels

Electric & Hybrid Propulsion Ordered fir CMAL Ferry

Imtech Marine informs it has been awarded a third contract to supply the electric and hybrid propulsion system for a hybrid ferry operated by Caledonian Maritime Assets Ltd (CMAL) of Scotland.

Malaysia Orders Migrant Rescues, Thailand Says No to Shelters

Malaysian Prime Minister Najib Razak said on Thursday he had ordered the navy to conduct search and rescue missions for thousands of migrants adrift at sea as Thailand's

Ferry Firm DFDS Looks to Expand

Danish ferry and transportation firm DFDS is on the takeover trail, its chief executive said, after reporting its highest first-quarter operating profit on record

Coast Guard

5 Tunisian Migrants Die in Shipwreck

At least five Tunisian migrants died on Saturday when their boat sailing to Italy capsized off the Tunisian coast, officials said. "A migrant boat carrying

USCG Assists Sinking Vessel East of Nantucket

The Coast Guard is responding to a fishing boat taking on water 130 miles east of Nantucket, Massachusetts, Saturday. At about 12:45 a.m., the fishing vessel

Alaska, Washington to build Arctic Icebreakers

Senator Lisa Murkowski, Alaska, and Senator Maria Cantwell, Washington, have introduced a bill that would authorize the Navy to build up six icebreakers for use by the U.

People in the News

Solarworld Wants Duties on Chinese Solar Goods in U.S. Extended

German solar manufacturer SolarWorld will apply to the United States for an extension of duties on Chinese panel imports that are due to end this year, weekly Euro am Sonntag said.

Sea Urchin Haven Disturbed by Oil Spill

Stephanie Mutz makes a living plucking sea urchins from the Santa Barbara coast and selling the prickly treasure to upscale restaurants in Southern California.

USCG Assists Sinking Vessel East of Nantucket

The Coast Guard is responding to a fishing boat taking on water 130 miles east of Nantucket, Massachusetts, Saturday. At about 12:45 a.m., the fishing vessel

Government Update

Solarworld Wants Duties on Chinese Solar Goods in U.S. Extended

German solar manufacturer SolarWorld will apply to the United States for an extension of duties on Chinese panel imports that are due to end this year, weekly Euro am Sonntag said.

Alaska, Washington to build Arctic Icebreakers

Senator Lisa Murkowski, Alaska, and Senator Maria Cantwell, Washington, have introduced a bill that would authorize the Navy to build up six icebreakers for use by the U.

Launch of First Future Destroyer, Hobart

Speech delivered by the Minister for Defence, Kevin Andrews during the launch of Hobart - the first future destroyer: Thank you for being here on this very important day.

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Pod Propulsion Port Authority Salvage Ship Electronics Ship Repair Ship Simulators Shipbuilding / Vessel Construction Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.3737 sec (3 req/sec)