The Cruise Industry Assistance Washington Should Give: Repeal the Passenger Vessel Services Act

Colin GrabowAs the coronavirus produces gaping holes in the balance sheets of companies throughout the economy, President Trumphasgivennumerousindications that he considers the cruise industry a  prime candidate for a federal bailout. With many of the world’s major cruise lines headquartered in electorally‐​important Florida, that’s not a surprise.But before appropriating a  single dollar of taxpayer money to these cruise lines, Congress and the White House should opt for another form of relief: repeal of the Passenger Vessel Services Act (PVSA). Passed in 1886, the law mandates that vessels transporting passengers within the United States be U.S.-flagged, U.S.-crewed , U.S.-owned, and U.S.-built. Its provisions largely mirror those of the better‐​knownJones Act but apply to people instead of cargo.Like the Jones Act, the PVSA has been hurting the country almost since its inception. Indeed, after Hawaii was annexed by the United States, and thus became subject to cabotage laws such as the PVSA, representatives from the territorycomplained that transportation to the U.S. mainland became more difficult than when Hawaii was still an independent kingdom. The advent of commercial air travel, which is not subject to a  U.S.-build requirement for domestic service, has thankfully eliminated this hassle.Fortunately for the cruise industry, the PVSA ’s restrictions can be avoided if voyages departing from the United States feature at least one stop in a foreign por...
Source: Cato-at-liberty - Category: American Health Authors: Source Type: blogs