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

People & Company News

Kongsberg Expands Louisiana Office, Training Facility

Kongsberg Maritime has purchased approximately 5.2 acres for new construction on an 82,980 sq ft office and training facility. Construction on the James Business

HII Acquires Engineering Solutions Division

Huntington Ingalls Industries (HII) has acquired the Engineering Solutions Division of The Columbia Group, a designer and builder of unmanned underwater vehicles

Sjo Resigns from Polarcus Board of Directors

Polarcus Limited announced that Hege Sjo will resign from its board of directors effective February 2, 2015.   Sjo has accepted an appointment as Deputy Director

Passenger Vessels

Lerwick Harbor sees Positive Outlook

Lerwick's importance as a gateway for Shetland’s communities and industries is underlined by an increase in passenger traffic, cargo handled and fish landed in 2014.

Seabourn Names New Cruise Ships

Seabourn Encore and Seabourn Ovation will be the names of new ships joining the fleet of luxury cruise line Seabourn in late 2016 and spring 2018.  Both are part of the line's Odyssey class,

'World's First Hybrid Superyacht'

Developed by Dutch shipbuilders Feadship, the 83.5m Savannah is touted as the world's first hybrid super yacht. Vessel is 30% more fuel efficient than similar sized counterparts, claims the company.

Coast Guard

USCG Updates Rules for Arrival/Departure Notices, AIS

Final rule on vessel requirements for Notices of Arrival and Departure and Automatic Identification System published in Federal Register   U.S. Coast Guard (USCG)

Australia Bolsters SAR in Indian Ocean Region

AMSA leading program to strengthen search and rescue capabilities in Indian Ocean region   The Australian Maritime Safety Authority (AMSA) said it has commenced

Dozens Missing off Bangladesh after Boat Sinks

About 40 illegal migrants heading from Bangladesh to Malaysia to look for work were missing on Thursday after their boat sank, police said. A steady stream of

People in the News

Congestion is Port of Long Beach’s Toughest Issue

Slangerup’s State of the Port address outlines goals for Energy Island, smarter supply chain   In his first-ever State of the Port address, Port of Long Beach

Marquette Transportation Reportedly for Sale

Marquette Transportation Company LLC, a U.S. towboat operator, is exploring a sale that could value it at more than $1 billion and has attracted the interest of

Tohoku Electric's LNG Buy Sets Asian Spot Level

Japanese utility Tohoku Electric has purchased an LNG cargo for delivery in the third week of March at a price in the low $7 per million British thermal unit (mmBtu) range,

Government Update

Shippers Must Monitor Greek Government Changes

Moore Stephens says shipping must monitor developments in wake of Greek government change   International accountant and shipping adviser Moore Stephens says

USCG Updates Rules for Arrival/Departure Notices, AIS

Final rule on vessel requirements for Notices of Arrival and Departure and Automatic Identification System published in Federal Register   U.S. Coast Guard (USCG)

Europe's Offshore Wind Capacity Growing

New capacity edges down 5 pct from record 2013; industry body forecasts stable growth over 2015/6. Europe's offshore wind capacity kept up a steady rate of growth

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Naval Architecture Navigation Port Authority Salvage Ship Repair Ship Simulators Winch
rss | archive | history | articles | privacy | terms and conditions | 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: 0.1677 sec (6 req/sec)