Why Do Cruise Ships Have to Stop in Foreign Countries?

Cruise ships typically stop in foreign countries for a variety of reasons, each contributing to the overall experience, economic benefits, and regulatory compliance of the journey.

Port Agreements: Financial Benefits for Both Sides

Cruise lines often enter into agreements with foreign ports to ensure their ships can dock and allow passengers to disembark. These agreements can be financially beneficial for both the cruise lines and the port cities, providing mutual advantages.

Enhancing Passenger Experience: Exploring Diverse Cultures

Stops in foreign countries enhance the cruise experience by allowing passengers to explore different cultures, landscapes, and attractions. This variety is a key selling point for cruise vacations, often making these voyages more appealing to a broader range of customers.

Regulatory Requirements: Compliance with International Laws

Many countries have laws requiring vessels engaged in international travel to stop at a foreign port before they return to their home country. This is often related to customs and immigration regulations. The Passenger Vessel Services Act (PVSA), a US cabotage law, stipulates that foreign vessels must stop at a foreign port before disembarking a passenger who embarked at a US port of departure.

Economic Impact: Boosting Local Economies

Cruise ships contribute significantly to the economies of the ports they visit by bringing tourists who spend money on excursions, dining, shopping, and other activities. This can be particularly significant for local economies when compared to the alternative options such as staying in a quiet hotel or a theme park.

Itinerary Variety: Catering to Diverse Customer Interests

Including foreign ports allows cruise lines to create diverse itineraries, appealing to a broader range of customers looking for unique travel experiences. This flexibility makes cruises an attractive option for many leisure enthusiasts.

Technical and Operational Reasons: Restocking and Pandemic Exceptions

Moreover, stopping at ports is necessary for restocking food and fuel. It is also important to note that the majority of cruise ships sailing from the US are not registered in the US. They are often registered in tax havens such as the Bahamas, Panama, or Bermuda, allowing them to build ships overseas, hire international crew, and avoid US income tax.

One notable example is NCL’s Pride of America, the only US-flagged cruise ship, which operates domestic cruises out of Hawaii without needing to stop in South Pacific islands such as Vancouver, Canada, or Ensenada, Mexico.

The Passenger Vessel Services Act (PVSA) applies to foreign vessels, requiring them to stop at a foreign port before disembarking a passenger who embarked at a US port. In most cases, the disembarkation port must be the same as the embarkation port. Exceptions can be made under certain circumstances, such as emergencies or compassionate grounds. The PVSA can result in fines, but in cases such as medical emergencies or natural disasters, fines may be waived.

Regulations in Other Countries also apply similar rules, such as cabotage laws in Canada, the UK, and Italy. For example, British Isles cruises are required to make a port call in the Republic of Ireland or continental Europe before returning to the embarkation port.

In some instances, standing orders may also be issued to waive the PVSA, such as during the 2021 Alaska Tourism Restoration Act, which allowed foreign-registered cruise ships to do closed-loop cruises to Alaska from the US west coast without stopping in Canada.

Some countries, like Australia, do not have cabotage laws concerning passenger vessels, making it possible for "cruises to nowhere" that head out to sea and return to the embarkation port without stopping at any ports of call.

While it may seem cumbersome, these regulatory and logistical requirements are integral to the cruise industry, ensuring a seamless and legally compliant experience for both cruise lines and passengers.

Conclusion

Ultimately, the stops made by cruise ships in foreign countries are crucial for several reasons, including financial benefits, enhancing passenger experience, regulatory compliance, boosting local economies, and catering to a diverse range of customer interests. These factors work together to make foreign stops advantageous for cruise lines, their passengers, and the ports themselves.