100-Year Old Law Keeps Cruise Ships Out of Charleston

It’s the middle of winter in the "Arctic North."

Temperatures are in the teens and snow blankets the ground. Lawns and running water are distant memories. You anticipated the blizzard and stockpiled food like a prudent squirrel, but the last of the rations were lunch. Instead of trekking to the corner store for another round of supplies, you dream of stepping onto a luxury cruise ship. Sinking into a steaming Jacuzzi, your toes defrost and your imagination wanders to the 60-degree temperatures and green golf courses that await to the south...

A 112-year-old law is your rude awakening from this dream. It makes it nearly impossible for tourists to cruise southward to soak up some Charleston sunshine and enjoy those grassy golf greens -- not to mention that it keeps hundreds of thousands of dollars out of Charleston’s pockets.

Restrictions included in an obscure 1886 law, the Passenger Services Act, have resulted in virtually no cruise activity between U.S. ports. Companies are forbidden from ferrying passengers from the frigid north to a warm get-away in the south, or between other ports, unless they abide by a litany of rules. The law does not protect Americans’ jobs on vessels and in shipyards, because there is no deep draft U.S. cruise industry outside of the Hawaiian Islands.

The current law states that cruise ships carrying passengers between U.S. ports with no foreign visits must be built in the U.S., registered in the U.S. and manned with U.S. crews. If these rules are not followed, the operator must pay a steep penalty. These standards place coastwise cruises at a competitive disadvantage with other means of travel.

To offer attractive vacations that compete for limited vacation money, cruise operators must offer low-cost options, yet they also must visit a foreign port to abide by the law. Cruise operations in Florida are booming because the vessels can easily call at foreign ports.

According to the South Carolina State Ports Authority, numerous operators have indicated a desire to offer more vessel calls in Charleston, but the law makes it unprofitable. Despite these major hurdles, Charleston has succeeded in attracting considerable cruise business.

Having a passenger terminal in the heart of one of the region’s most popular and most visited cities certainly helps. In 1995 more than 10,000 passengers on 27 ships visited the city, and the port estimates 32 vessels and 14,000 passengers for 1996.

Opening up the coastal cruise business to foreign ships would benefit numerous U.S. ports, including Charleston, and bring many new dollars into your local economy.

Cruise traffic has significant positive impacts on ports and tourist destinations. The International Council of Cruise Lines estimates that for every job on a cruise ship, 12 jobs are created on shore.

Cruise ships benefit a number of businesses, including local retailers, travel agents, food suppliers, ship repair companies, stevedores, tour operators, hotels, restaurants and bus and taxi companies.

Assuming 60% of passengers stay two nights in the port where a cruise begins and ends, more than $250,000 would be pumped into the local economy. Maritime services and supplies could add another $200,000 per ship.

Another benefit is the "introduction factor." Cruises introduce travelers to new places and give them a teasing taste of the cities they visit. Most of us would safely bet that those who visit Charleston want to return. Satisfied visitors also tell friends and family of their good experiences.

Another factor affecting this issue is capacity. The North American cruise market is growing at an annual rate of 15%, but recently constructed ships or vessels under construction could soon create a supply that exceeds demand.

Older vessels would either be redeployed or scrapped. U.S. coastal cruises, if opened to foreign ships, would be very attractive for cruise lines. Charleston’s historical significance, beaches and golf destinations would make it a prime choice. Evidently, Charleston has a lot at stake when it comes to cruise ship restrictions.

The South Carolina State Ports Authority and public ports throughout the U.S. have joined together to form the Cruise America Coalition.  It supports legislation that would permit foreign-flag cruise operations between U.S. ports where they would not conflict with U.S.-flag itineraries.

In years past, members of Congress have requested hearings on the Passenger Services Act. This dialogue would provide the opportunity to demonstrate benefits from modernizing the 100-year-old law. Any resulting changes to the Act would open up new business options and develop tourism in seaports along our nation’s coasts.

Your help is needed... Contact your U.S. Senators and Representative and them know you support changes to the Passenger Services Act.