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 March 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

300 Missing After Korean Ferry Capsizes

Almost 300 people were missing after a ferry capsized off South Korea on Wednesday, despite frantic rescue efforts involving coastguard vessels, fishing boats and helicopters,

Samsung Heavy Takes Up 7 Container Ship Order

South Korea's Samsung Heavy Industries said on Wednesday that it is proceeding with a project worth 642.9 billion won ($617.67 million) to build seven container ships as planned.

South Stream Gas Pipeline Re-route via Turkey Possible

Turkish Energy Minister Taner Yildiz said on Wednesday that Ankara would consider the passage of the South Stream natural gas pipeline through Turkey if Russia made such a request.

Passenger Vessels

Rescue underway to assist sinking S. Korean ferry

A passenger ferry carrying about 470 people was listing badly off South Korea's southwest coast and had sent a distress signal, a Korean coast guard official said on Wednesday,

Concordia Captain Tried to Blame Wreck on Electrical Blackout

The captain of the Costa Concordia tried to persuade the crisis coordinator of the cruise line to pretend an electrical blackout had caused the shipwreck, a court was told on Monday.

Port of Kiel Cruise Passenger Pavilion Takes Shape

It’s full steam ahead for Kiel’s Ostuferhafen construction work. Kiel’s new cruise ship passenger handling pavilion at Berth No. 1 in the Ostuferhafen is rapidly taking shape.

Coast Guard

Tug on the Rocks, Lake Pontchartrain, Three Rescued

US Coast Guard 8th District says that it has rescued 3 crewmembers aboard the (uninspected) tugboat 'UTV Todd Michael' after it grounded on the rocks near the Lakefront Airport on Lake Pontchartrain.

GofM Drill Rig Damaged, Coast Guard Monitoring

The Coast Guard is overseeing response efforts, as the offshore drilling rig ENSCO 8506 began taking sea-water into a ballast tank after being hit by a large wave

Search is on for Man Overboard in the Pacific

The U.S. Coast Guard is searching for a male crewmember reported overboard from a container ship approximately 805 miles northeast of Oahu, Monday. Watchstanders

People in the News

Least Known Navy Activity? Underwater Shipwreck Archeology

Robert S. Neyland, Ph.D., director of the Underwater Archeology Branch (UAB) of the Naval History and Heritage Command (NHHC) in Washington, D.C., manages the people who protect more than 17,

Three NOAA scientists honored by White House

The White House yesterday awarded three NOAA scientists with Presidential Early Career Awards for Scientists and Engineers. The award is the highest honor given

US FMC Commissioner Visits Panama Canal Expansion Sites

Counsel to the U.S. Federal Maritime Commission informs that  Commissioner William P. Doyle has recently surveyed the construction site on a visit to the Pacific-side of the expanded Panama Canal.

Government Update

First Crude Lifting in 9 months at Libya's port of Hariga

A tanker has started loading crude at Libya's eastern port of Hariga for the first time in nearly nine months, after a federalist group agreed to re-open it last week,

South Stream Gas Pipeline Re-route via Turkey Possible

Turkish Energy Minister Taner Yildiz said on Wednesday that Ankara would consider the passage of the South Stream natural gas pipeline through Turkey if Russia made such a request.

Hong Kong Tin Hau Festival

The Tin Hau Festival at Tai Miu Wan will be celebrated this year on 22 April 2014. Coxswains, owners and operators of local vessels are advised that arrangements

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Naval Architecture Offshore Oil Pipelines Pod Propulsion Salvage Ship Repair Shipbuilding / Vessel Construction
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: 0.2579 sec (4 req/sec)