GAO wary of cruise exemption

[The Sushi Bandit]

http://the.honoluluadvertiser.com/article/2004/Mar/02/bz/bz02a.html

(Dont let the "Norway part" fool you, it is owned by a group in Malaysia!)

Congressional legislation pushed by Hawai'i's delegation to boost the cruise industry in the state effectively gives Norwegian Cruise Line a monopoly in the interisland market, according to a report released by the U.S. General Accounting Office yesterday. The GAO report also cites analysts' concerns that Norwegian may not be successful with its U.S. flag operations in Hawai'i and that the company could switch back to lower-cost foreign flag ships to remain competitive. Such a move could result in the loss of both tax revenue and U.S. jobs, including those held by Hawai'i residents.

<snip>

Federal law requires non-U.S. ships to make a foreign stop when cruising among U.S. ports, preventing most cruise lines from basing cruise ships in Hawai'i. But under the legislation, Norwegian was exempted from the requirement and permitted to sail three foreign-built ships flying U.S. flags.

In its report, the GAO — the research arm of Congress — said the exemption "effectively gives NCL a monopoly on interisland Hawaiian cruises — providing consumers with itineraries that were previously unavailable."

[Florida_Geek]

1. As a cruiser, the Jones Act has always

been crazy.

[TreasonousBastard]

2. It's a long story...

but you could take it up with the NMU, SIU and look into some of "Lunchbox Harry's" old deals.

I'm pro union, but (there's that "but" again) US flag ships would have to have all-union crews, and that means cruise ships would have even the cleaning help making around a hundred grand a year with the overtime rules they have. Imagine what a three-day cruise would cost then.

Many years ago, I was listening to an NMU guy telling me about trying to cut a deal with the Hawaiian cruise trade, but it seems to have fallen apart.

The Jones Act did a lot of things, many of them necessary to align the US with international shipping customs and procedures, but the US flagging, construction, and ownership requirements pretty much gave the maritime unions and the shipbuilders what they needed to help destroy the industry.

[BiggJawn]

3. That is one ugly boat.

Disney World afloat, I'll bet. Eat. Drink. Gamble. Repeat.