COVID-19 Impact on Cruise Industry

Congress tasked the Federal Maritime Commission with administering the Shipping Act of 1984, 46 U.S.C. § 40101 et seq. The Commission also administers Public Law 89-777, 46 U.S.C. § 44101 et seq., to ensure that passenger vessel operators (PVOs) satisfy the financial responsibility requirements related to nonperformance of transportation and death or injury to passengers.

The purposes of the Shipping Act include the provision of “an efficient and economic transportation system in the ocean commerce of the United States that is, insofar as possible, in harmony with, and responsive to, international shipping practices.” 46 U.S.C. § 40101. Pursuant to the Shipping Act, the Commission regulates ocean common carriage of the United States. When they are engaged in transportation of passengers between the U.S. and a foreign country, PVOs are common carriers under the Shipping Act.