It is time to repeal the Passenger Vessel Services Act

Have you ever wondered why the major cruise lines don’t offer cruises that go directly from California to Hawaii, or voyages from New York to Miami that call at the popular tourist cities along the East Coast? The reason is a law enacted in the 1880s called the Passenger Vessel Services Act, which prohibits foreign flag ships from doing itineraries that are composed entirely of U.S. ports.

The reason for this law and for its counterpart, the Jones Act (the Merchant Marine Act of 1920) which applies to cargo, was to protect the United States merchant marine, promote U.S. shipbuilding and to secure jobs for U.S. mariners. Today, of course, the number of U.S. ocean-going passenger ships is insignificant, no cruise ships to speak of are built in the United States and few Americans are interested in being waiters and cabin stewards on cruise ships - - the majority of the jobs on a modern cruise ship.

Meanwhile, the largest of the major cruise lines, Carnival Corporation and Royal Caribbean, are headquartered in the United States and publicly-trade on the New York Stock Exchange.* Thus, the businesses being excluded from doing American itineraries by the Passenger Vessel Services Act are for practical purposes American businesses.

In addition, coastal cities in Europe, the Caribbean, and even in the U.S. have found that having cruise ships stop in their harbors is a great enhancement to the local economy. Evidence of this can be seen by all of the cruise ship piers and cruise ship terminals that have been built in the last decade all around the world. By precluding cruise ships from doing exclusively American itineraries at least a portion of the money that would be spent by cruise ships stopping in American ports is by definition going outside the country.

Why then is the law still in effect? To a large extent it is because talk of repealing the Passenger Vessel Services Act becomes entangled with talk of repealing the Jones Act. There still are American-flagged ships involved in the transport of cargo and there are legitimate strategic reasons for protecting what remains of that industry. Consequently, when packaged with repeal or the Jones Act, there appear to be reasons not to repeal the Passenger Vessel Services Act. While the two laws operate in a similar fashion and were originally designed to serve the same purpose, times have changed and thus repeal of the two laws should be evaluated independently.

From time to time, various schemes emerge to revive the U.S.-flagged passenger fleet and appear to provide a reason for continuing the law. In the most ambitious of these, Norwegian Cruise Line, which was then 100 percent owned by Singapore-based Star Cruises, formed a subsidiary NCL America for the purpose of providing cruises around the Hawaiian Islands. Various exceptions to the Passenger Vessel Services Act were passed by Congress in order to facilitate this scheme and NCL was able to place American flags on three of its vessels. However, by so doing, Congress essentially stood the law on its head - - it was now protecting a foreign-owned business which was operating ships that had not been built in the United States. Moreover, even with these concessions, the venture has not been a success and NCL has withdrawn two of the ships.**

Another reason the law remains on the books is because there is no large constituency demanding its repeal. The cruise lines do not vote. Perhaps as more communities realize that their local economies would be boasted by having more ships stop in their ports, there will be more support for repeal.

* Due to its merger with P&O in 2003, Carnival also has a headquarters in London and also trades on the London Stock Exchange.

** Viewing NCL’s failure as the result of competition from other cruise lines that include a brief stop in Mexico or at Fanning Island in their Hawaii cruise itineraries, the Maritime Administration has proposed a re-interpretation of the Passenger Vessel Services Act which would require foreign-flagged vessels to spend at least 48 hours in a foreign port and to spend at least 50 percent of the cruise outside of the U.S. However, assuming arguendo that this competition is the cause of NCL’s failure, it only demonstrates that there is something inherently inefficient about operating under the PSVA. The other lines have to travel far out of the way, incurring addition fuel costs and making their cruise-itinerary less appealing to passengers, in order to compete in the Hawaii market. If they are nonetheless succeeding in the market, it follows that they are the more efficient competitors. To impose additional barriers to competition would only distort the market further to the detriment of the American consumer.

In addition, the Maritime Administration’s proposal would have effects beyond Hawaii in markets where there are only foreign-flagged ships. For example, on cruises to Canada and New England from New York, the ships would have to spend at least half their time in Canada to the detriment of cities like Boston, Bar Harbor and Portland Maine.

The food and beverage manager on any passenger ship has a great responsibility. After all, eating in the ship's restaurants and drinking in the bars are important parts of the cruise experience. Consequently, the food must be good and plentiful and quality service has to be maintained. In addition, the restaurants and bars have to reflect the style of cruising that the cruise line has marketed to the public.

All of this involves a massive behind-the-scenes operation. The food, beverages and other supplies have to be ordered, brought onboard, stored and used. The staff must be trained and motivated. There must be opportunities for advancement, good living conditions and entertainment for the crew in order to have good morale and thus good service.

Bernhard Fischer is the Food and Beverage Manager on Queen Mary 2. QM2 is one of the largest ships in the world and with a schedule that involves numerous sea days, there are logistical considerations that other ships do not encounter. Moreover, when I interviewed him recently, he pointed out that the history and tradition of Cunard Line required a different way of doing things that differentiates QM2 from every other passenger ship.

The interview is posted at http://www.beyondships.com/QM2-Fischer.html I hope you enjoy it.

There is something about Caribbean Princess

I recently returned form a cruise on Caribbean Princess. The ship is the fourth one to be built on the design first inaugurated with the Grand Princess. There are now ten Grand-class ships - - nine with Princess and one with P&O cruises. All are massive ships ranging from 108,000 to 116,000 tons and carrying 3,000 plus passengers. Their steep white sides tower over you like a building when you are standing on the pier.

Although these ships spring from the same basic design, there are differences. Some have more decks than others, some have a pod suspended above the stern that houses a nightclub, and some have what looks like jet engines around the funnel. Along the same lines, Princess has developed new ideas for amenities and facilities over time and consequently, there are differences in that you will find inside the ships. While the line strives to retro-fit the earlier ships with the things that have proven a success on subsequent ships, that process in itself leads to differences.

There is also the fact that even physically identical ships have different personalities. This is a function of a host of factors including the captain and the crew. The original personalities often leave their mark on the way things are done on a ship. Subsequent, personalities may make changes but the atmosphere on board will never be identical to that on board the ship’s physically identical sister.

Caribbean Princess has a quiet unassuming personality. The ship’s interior is physically attractive and well-maintained. Indeed, there are areas such as the atrium that are quite pretty but it is never overpowering. There is no neon, nothing intended to shock the senses.

Things tend to move smoothly on Caribbean Princess. The service in the cabins and the restaurants was good throughout my voyage. Moreover, there was always something going on or something to do. Indeed, I was impressed by the fact that thee were activities on the ship even when she was in port - - a recognition of the fact that for some passengers the ship is the destination.

This year, Caribbean Princess is taking over the itineraries done in the past by her sister Crown Princess - - sailing from San Juan in the winter and from New York in the warmer months. Accordingly, I expected to find veterans of Crown Princess on this cruise. While there were some, most of the past passengers seemed to be followers of Caribbean Princess. There was something about this ship in particular that they liked, something intangible. Indeed, it is difficult not to like Caribbean Princess.

My photo tour of Caribbean Princess as well as copies of menus, daily programs and other materials are at: http://beyondships.com/Princess-CB-Profile.html

Coping with Single Supplements

Almost all modern cruise ships are built with staterooms designed for two or more people. As a result, there are only a few ships - - primarily older ones - - that have cabins designed for single occupancy. Consequently, when a single person wants to cruise, he or she is required to pay a single supplement. These supplements can range up to 200 per cent of the per person cost of a ticket for a double occupancy cabin.

The theory underlying why the cruise lines charge a single supplement is that since the space was designed to be occupied by two people, the cruise line would be losing out on half of the revenue the ship was designed to generate if the cabins were sold to singles at the double occupancy per person rate. The line does have some cost savings in the amount of food consumed when there is one person in a cabin but this is not a significant savings and is offset by the loss in revenue in the bars, shops and shore excursions that the line would have received if there had been a second person in the cabin.

Nonetheless, many single travelers are upset by having to pay a single supplement. Nobody likes to feel that they are paying more than someone else for the same thing. Also, the single supplement makes taking a cruise more expensive for singles.

The first concern is somewhat illusory. A person paying the single supplement and obtaining a cabin single occupancy does get something that the person traveling double occupancy does not get - - he or she gets the cabin to himself or herself while the person in the double occupancy cabin has to share.

In addition, while in theory the single traveler pays more, this is not always so in reality. These days there can be very large differences in the price of a cruise depending upon a host of factors such as when the cruise was booked and which travel agent the parties used. In addition, if the cruise is not selling well, the line may drop or reduce the single supplement so as to get people on the ship. Thus, a single person can end up paying the same or even less than the per person rate for the couple in the next cabin. It does require more shopping around on the part of the single traveler but it can be done.

As to affordability, most people realize that the cruise line could not stay in business if it sold a significant portion of the cabins on each cruise on a single occupancy basis at the per person double occupancy rate. The solution appears to be to build ships like in the old days that had some single occupancy cabins. However, if one looks at the brochures for a ship such as the QE2, one sees that the rate for a single cabin is more than the per person rate for the same category double cabin. In effect, there is a single supplement built into the single cabin rate.

To a certain extent, the concern over the single supplement is a product of the pricing model used in the cruise industry. In most major hotels, the rate for a room is the same regardless of how many people are staying for the night and no one gets upset. The cruise industry has elected not to follow that model but rather advertise prices on a per person basis. As a result, the numbers used in the advertisement are lower and thus more attractive. However, this model produces the opposite result (i.e., it makes the cruise appear to be more expensive) in those instances where there will be less than two people in the cabin. It may be a matter of perception, but until it is more widely explained it will continue to upset people and thus affect sales.

What I have found that works best for me when I am considering cruising by myself is to price the cruise without regard to the per person double occupancy rate or the single supplement. I am just looking for a number - - the price that will be charged to me. If it is a reasonable number and one that I can afford, I book the cruise. Since the actual single fare is rarely advertised, this process requires getting quotes for the cruise which can be done by talking with travel agents or by going online to a number of websites.

Carnival Miracle

For Carnival Miracle the tile “fun ship” is more than just an advertising slogan. When you walk on board, you find yourself in a whimsical theme park created by Carnival designer Joe Farcus. The Bacchus Dining Room is deep purple with large purple globes hanging from the ceiling like bunches of grapes. “I feel as if I’m in a bottle of red wine,” I heard someone say. Along the same lines, a giant statue of Frankenstein dominates the dance floor in the multi-deck night club, Dr. Frankenstein’s Laboratory. The theater presents an imaginary Paris Opera House torn from the pages of the Phantom of the Opera. The theme of the ship’s decor is famous fictional characters and the passenger is cast into their dream world.

At the same time, there is a more serious side to Carnival Miracle. The ship is one of Carnival’s Spirit class and is built on the popular Vista hull. She is longer and lower than Carnival’s larger variations on the Destiny-class design and has an azipod propulsion system rather than a traditional propeller shaft arrangement. Consequently, she is more suited for longer voyages across more varied seas.

This allows the ship to be used for longer cruises from New York. Also, because the cruises are longer, they require passengers who have more vacation time. Therefore, her captain Claudio Cupisti notes, Miracle attracts a more “cosmopolitan” passenger. I recently had the chance to revisit Carnival Miracle and have put together a new photo essay of exterior shots of the ship. In addition, I have enhanced my existing profile of Miracle with additional photos, a new copy of the daily program Carnival Capers, and a menu from the ship’s specialty restaurant Nick and Nora’s supper club. The new essay appears at: http://beyondships.com/CarnivalMiracle-NewYork.html