Can you think of an industry that takes in $150 billion in revenue with a million employees because of roughly 300 ships? Well, there’s only one, and it’s cruise ships.

Subject to some of the biggest regulations, cruise lines often have to pay massive fines for things you may have never heard about. Well, that doesn’t have to be the case anymore. Let’s talk about the Passenger Vessel Services Act (PVSA) and how it relates to your cruise vacations.

What Is the Passenger Vessel Services Act?

The PVSA is a law in the United States that came into play in 1886 relating to what was known as “cabotage,” which is the transportation of goods or passengers within one country while the transport owner or operator is from another country.

The idea behind this legislation was to rid the country of certain fees that were interfering with the operations of American vessels and to fix some of the broken laws from the time that interfered with US industrial transportation.

Whether you’re a first-time cruiser or a seasoned veteran, you’ve likely never heard of the PVSA, so let’s see what the law actually is before we discuss its relation to cruise ships.

The Law

To know what the law is about, it’s important to know the definition. The long title of the act is essentially a law to abolish certain fees for services to American vessels and to amend any laws related to shipping commissioners, operators, and owners of vessels, as well as for other purposes.

It also states that no foreign vessel larger than 5 tons, including ferries and other ships, shall transport passengers from one port within the US to another or face a penalty of $762 per passenger that was successfully transported and landed. The price at the time was $200 but has since been raised to $762 per passenger, where it currently stands.

These laws cover any navigable waters in or around the United States that offer transport to other countries, including oceans and The Great Lakes. States such as Hawaii and Alaska, as well as other US territories, are included in the same way as the mainland US. This law is still in place today and creates many logistical challenges for both cruise lines and passengers alike.

What Is Not Covered

There are important exceptions to this legislation that are worth noting. The law does not include vessels that depart from and land at the same US port, presuming they landed at another foreign port between.

The law does not prohibit foreign ships that are departing from a US port, who are then visiting a distant foreign port, and then continuing to a different US port. However, in order to travel in a US port and land in a second US port, the vessel must visit a distant foreign port outside North America or the Caribbean.

There were other specific exemptions. Canadian vessels were able to carry passengers from Rochester, NY to Alexandria, NY, as well as between certain ports in Alaska. This was only until the US was able to take over the market for this. Later on, ports between islands in Hawaii were also made into exceptions to this law.

Who Requests The Fines?

While the Passenger Vessel Association is responsible for overseeing the cruise industry in the United States, they are not responsible for charging or receiving these penalties.

The Customs and Border Protection (CBP) will deliver and accept fines from passenger vessels who violate the PVSA. There may be circumstances where CBP agents do not pursue a fine for a violation on the grounds that they see fit. However, this is a rare occurrence.

How The PVSA Affects Cruise Ships

Of course, when we think of passenger ships, cruise lines come to mind. However, this law didn’t come into play because of cruise ships, as cruises have only been around since the 1960s.

However, no exceptions were ever made to the PVSA in regard to cruise ships once they became popular, so how are they affected by the law?

The two biggest cruise lines in the US are Royal Caribbean and Carnival, and neither of them operates with US flags on their ships. Their ships always have foreign flags and registrations because of the advantageous laws and business opportunities in other countries, mostly within Latin America.

The next down the list is Norwegian Cruise Line (NCL) and Disney Cruise Line. NCL only has one single ship registered in the US, and Disney has all of theirs in the Bahamas. So, do they have to pay $762 per passenger when they arrive at another port in the US? Let’s start by talking about why they use different flags.

“Flag of Convenience”

Many cruise lines are accused of flying a “flag of convenience” as opposed to a flag of the company’s origin. This is simply because it’s true, and few companies would bother to deny it.

This is a long-standing practice that was started by passenger liners and ferries because of prohibition laws in the 1920s when American-flagged ships couldn’t serve alcohol. Using a different flag allowed them to serve alcohol in international waters.

However, the reason they do this today is to figure out which country will give them the most advantageous regulations for their routes. Since most cruise ships take fairly consistent routes, there may be a certain country that gives them the most convenient deal for that route.

Because of this, cruise lines work to determine which country will be the most convenient for their registration when it comes to worker compensation and rights, alcohol and gambling laws, tax advantages, and more.

Now, with some of the COVID restrictions, foreign-flagged ships were not allowed to continue service while American-flagged may be able to, which makes you wonder why they don’t just change their flags. That brings us to the reason they have “flags of convenience.” They can’t.

To become an American ship, the entire ship must be assembled in the US and hold primarily US crews. That’s a ship that sailed a long time ago, if you’ll pardon the pun.

This is important to know in order to understand why the PVSA affects the cruise industry. The majority of cruise ships fall under the umbrella of foreign-flagged ships, even if they have headquarters domestically.

Also Read: U.S. Passport Card vs. Book: What’s the Difference?

What Happens If A Cruise Line Violates The PVSA?

Cruiselines will typically be diligent about planning their routes, but there’s no way to guarantee 100% effectiveness when avoiding fines. Even if they do plan it perfectly, there are still situations where this will happen.

For example, if somebody on board needs medical attention and needs to be dropped at the nearest port in Washington before arriving at their foreign destination in Vancouver. In this example, the cruise line will be fined $762 for that single passenger and nothing else.

If there is inclement weather that stopped someone in Florida from reaching their destination in the Dominican Republic and the cruise was canceled after leaving the port, they will be fined the $762 per passenger that is dropped off at the US port.

However, in a circumstance like this, the cruise line would try to negotiate the fee with the CBP for a lower rate, as this was not a planned landing. This is because if some of the largest passenger vessels have a serious emergency and need to get off, the fines could be steep, while the cruise lines will still have to refund their passengers.

If a cruise ship has 3,000 people on board and has to dock, it could be facing a fine of over $2.2 million. In these situations, fines will likely be reduced but not eliminated.

How Does It Apply To Back-To-Back Cruises?

If the cruise ship stops at a foreign port before its passengers land, there will be no fines, regardless of the type of cruise route. However, if there are two or more trips combined into one and passengers land without stopping at a distant foreign port, then yes. This will trigger a violation on a per-passenger basis.

Let’s say somebody goes from Seattle to Vancouver on a cruise but then stops in Alaska afterward. They started in Seattle and will eventually need to return there. If they use the same ship and go straight there without stopping at a Canadian port, they will be subject to a fine.

Are Certain Cruise Ships Exempt?

Yes. We mentioned that at least one NCL ship is American, but there are plenty more. Many smaller cruise lines and other passenger vessels are American-made, flagged, and operated and are not subject to these penalties.

However, there is only one mainstream cruise ship, Norwegian Cruise Line’s Pride of America, that is registered and flagged in the US. The rest are small passenger vessels that may act as “cruise ships,” and they will not be subject to these fines.

Jones Act vs Passenger Vessel Services Act

When people bring up the PVSA, the Jones Act is often mentioned. The Jones Act was initiated in 1920 as part of the Merchant Marine Act, and it bars ships from transporting goods from US port to US port unless they are built, flagged, and operated domestically.

The intent of this law was to secure a merchant marine fleet, most likely for national defense. Not only does this affect cruise lines and other passenger vessels, but all vessels not built and flagged in the US. Because of this, passengers don’t necessarily need to get off the ship for cruise lines to incur fines for docking.

Fines for violating these laws are also under the discretion of CBP, and there is no specific dollar amount for violations. They are incurred on a case-by-case basis and are often steep.

There have been several occasions where the Jones Act has been amended or revised throughout its history. It’s also been waived on several occasions, usually due to natural disasters requiring ships within the US to provide assistance.

PVSA News for Cruise Lines

Because of the Covid restrictions, cruise lines were given a temporary pass when it came to Alaska. This allows them to skip the foreign port requirement without receiving a fine.

This was because of Canada’s laws about foreign cruise ships at the time, and Vancouver and other ports are common destinations for Alaskan cruises.

In June of 2021, a US Senator from Utah introduced three bills to allow cruise ships the freedom to operate this way permanently, arguing that the law only benefits Canada and Mexico with increased maritime revenue while disadvantaging the US.

The first bill introduced was called the “Open America’s Ports Act,” which would repeal the PVSA, allowing passenger vessels to freely transport from US port to US port. 

The second was called the “Safeguarding American Tourism Act,” which was aimed at exempting large passenger vessels from PVSA requirements. The third was the “Protecting Jobs In American Ports Act”, aimed at repealing the requirement that ships be US-built to avoid these restrictions. Believe it or not, there hasn’t been a large cruise ship built in the US since 1958.

Since that bill was killed, Senator Lisa Murkowski announced a follow-up bill on September 15th called the Cruising For Alaska’s Workforce Act and is currently making its way through congress. The bill is primarily aimed to allow ships from the mainland US to reach Alaska without being subject to PVSA regulations.

PVSA FAQ

Keep On Cruising!

Now that you know about the Passenger Vessel Services Act and how it affects the cruise industry, you should be able to make more sense of the routes and other practices within the cruise industry. We’ve got more helpful guides on cruising over on our Cruise Tips section.

Just as your airline pilot offers useful snippets of information such as cruising altitude and speed, cruise ship captains love to regale passengers with similar insights.

In the exciting world of marine navigation, it’s fair to say that most of us don’t have a handle on all the terminology. For the most part, this doesn’t really matter – until we set foot on the deck of a cruise ship.

Suddenly we want to understand how fast is a knot, and what is a nautical mile anyway? If these nautical terms have always puzzled you, then read on. We have explored them in detail below.

Nautical Navigation Unpacked

You may rightly question why distance and speed are measured differently at sea compared to land. This is an excellent question and forms the basis of all nautical navigational reasoning. 

At the very root of it, land and sea travel differ in one key area: the sea has no landmarks. At no point can we turn left onto 51st Street and continue until we get to the T-junction.

This means that tracking our position on the water relies on a different map, that being the latitude and longitude coordinates of the earth. These measurements are ideal for long-distance travel and take into account the earth’s curvature when establishing an accurate position. 

So, to fully understand how fast a knot is, we need a bit more information on exactly how ocean travel is measured. The basics are as follows:

• A statute mile is another name for a land-measured mile
• A nautical mile is a distance measurement equating to 1.1506 statute miles
• One nautical mile equals one minute of latitude

How Fast Is a Knot?

Now that we have a grasp on how sea-faring folk measure distance, we can better understand the answer to the question, “How fast is a knot?”

A knot is a measure of speed and equates to one nautical mile per hour. (Approximately 1.15 statute miles.) Therefore the ratio of knots vs. mph is 1:1.15.

Why, though, would sailors use the term “knot” when referring to speed? The answer lies in history, around the 17th century to be exact. Minus the modern tech that we enjoy today, sailors used a “common log.” This beautifully simple solution consisted of a rope with knots tied at regular intervals and connected to a piece of wood. 

The rope was tossed overboard behind the vessel, and the able seamen would then flip an hourglass to measure a specific amount of time. Once the time was up, they would pull up the rope and count the knots between the wood and the boat. This gave them a measurement of speed hence the term knots or knot speed.

It may not have been the most accurate measurement, but it was enough to allow ancient mariners to navigate with sufficient accuracy to get to where they were going. 

Summing Up

We answer the FAQs on this fascinating topic below.

See You Onboard!

In this article, we hope that we provided you with the necessary details to better understand what your ship captain is telling you during your next cruise.

Also Read: How Fast Do Cruise Ships Go?

So, when he tells you that you’re traveling at 21kn and your fellow passengers look at you and ask, “How fast is a knot?” you can speak with conviction. And then, possibly deep dive into unpacking “How fast is 21 knots?”

Embarking on a cruise can have you feeling as though you are entering a strange foreign land with a whole new language to learn and decode. English is the onboard language used most often but the cruise ship terminology and lingo used can leave you unable to decipher what is being spoken about.

Thankfully, there is an easy way to get your head around this foreign tongue. This quick guide with on cruise lingo such as Bow vs. Stern and Aft vs. Forward will help you to find your way around these foreign terms and have you familiar with the lingo before you step aboard. Read on to navigate the language of the seven seas with confidence.

Cruise Ship Terms

Aft and Forward: The aft of a ship is the rear, while the front of the ship is referred to as forward.

Atrium: This is a multi-deck area of a cruise ship that is located in the central part of the ship, near to shops, cafes and elevators. The atrium can be of any length and varies from two to even ten decks in height.

Bow vs. Stern: The very front of the ship is referred to as the bow. The bow has been designed for it to easily glide through water. The shape that a bow takes is determined by the type of boat or ship, the speed of the vessel and the type of water it needs to navigate.

The stern is at the rear of the ship or boat and is located at the opposite end from the bow, the front of the vessel. It refers to the area that is constructed around the sternpost, the principal upright post at the rear end of a ship.

Bridge: The bridge is the area from which the captain steers and navigates the ship and from which the ship is commanded.

Crossing: A crossing refers to the voyage a ship takes across water to get to a particular destination.

Deck Plan: The deck plan refers to the plans that show what type of staterooms are located on every deck on a cruise ship, as well as the other facilities and rooms on deck including elevators, shops, restaurants and theaters.

Departure Port: This is the port or point from which your cruise begins and ends.

Galley: The galley is the location of the ship’s kitchen. Cruise ships usually have many galleys because of the large number of meals they need to prepare daily.

Gangway: The ramp that you’ll utilize to enter the ship as well as to disembark.

Gratuities: These monetary amounts are an expression of thanks from passengers for the service they received throughout a cruise. Gratuities for groups are usually included along with the passenger’s final payment.

Hull: The hull is the ship’s exterior.

Keel: This is the middle and central part of a ship that extends from the bow to the stern.

Lido Deck: “Lido” refers to beach in Italian and the lido deck on a ship encompasses the deck that has swimming pools and bars. Much programming based on swimming pool activities happens on this deck and it is one of the upper-most ship’s decks.

Open Seating: This refers to being able to sit anywhere where there are unoccupied tales in the ship’s dining areas. It is an alternative seating arrangement to fixed dining table arrangements.

Port: This is the ship’s left side when viewed from the perspective of it facing forward. The left-hand side and the port side of the ship both mean the same thing.

Port of call: A port of call refers to one of the destinations on a cruise where you will most likely be able to disembark and experience shore excursions.

Port Expenses: Every port of call that you arrive at on your cruise will levy a charge that is based on local taxes and fees. These charges usually come as an additional cruise expense, as cruise companies don’t usually charge for port expenses and other taxes.

Portholes: These are the circular windows in ship’s cabins.

Promenade: The promenade is the open area that extends over the entire length on either side of a cruise ship. Some ships have decks that completely encircle the ship.

Repositioning Cruise: A repositioning cruise occurs when a cruise liner has to move from one part of the world to another. These cruises often occur with a change in seasons and are also frequently economically priced.

Single Supplement: This is an additional amount that is charged because cruise fares are based on double occupancy. Some cruise ships can charge double the rate for a single fare while others have a few single cabins available that will cost single travelers the same as double occupancy rates.

Starboard: Starboard refers to the right side of the ship when viewed from the position of the ship facing forward.

Thruster: This is a propulsion device that is fitted either on the bow or the stern of a ship. They are smaller than the ship’s propellers and allow for greater maneuverability at lower speeds, making docking easier. Large ships can have a number of bow and stern thrusters.

Also Read: Port and Starboard: Which Side Is Which?

Cruise Ship Dining Terms

Cruise Casual: This is the term referred to for the dress code at dinner on most nights onboard a cruise ship. Men can wear casual wear such as slacks, jeans, dress shorts and sports shirts. Women are able to wear casual dresses, pants, capri pants as well as dressy jeans.

Cruise Elegant: On these nights it’s advised that passengers wear more formal wear such as dress pants, dress shirts, and sport coats for men. Women should wear cocktail dresses, skirts and more formal pantsuits.

Formal Night: On longer cruises, there will be at least two formal dressing nights. These involve wearing formal suits or tuxedos for men and evening gowns for women. This dress code is not an absolute requirement although it is appreciated.