I know with ships that do international travel they usually register/flag the ship in some few countries that are very forgiving in their laws to their owners.
But what if I have a cargo vessel plying the Great Lakes? Can it be flagged in Bermuda? What about my personal yacht (pretend I have one)? I live in Chicago but can I flag it in Panama?
Or is it a moot point? Even if flagged in Bermuda as long as I am in US waters my ship/boat is subject to US law and not the country it is flagged in?
Here in So FL many, many yachts both large and not very large are “based” in the Bahamas. Probably mostly to do with a massive reduction in taxation rather than relaxed safety regulations.
This law Merchant Marine Act of 1920 - Wikipedia requires that ships going between US ports be US-crewed and US-registered. So a Great Lakes ship that visited only US ports could not be registered elsewhere. I don’t know for sure, but that suggests that by contrast, a ship that always visited Canada at least once between each US port call could be registered anywhere. Depending of course on Canadian law as well. But from the US-only legal POV, that’d be fine per the Jones Act.
Subject to which US laws for what purpose? Laws about ownership, liability, safety, crewing, maintenance, insurance, pollution discharge, operating procedures, taxation, compliance with USCG orders, etc., are each different laws with different applicabilities.
I know I don’t know the details beyond what I’ve already posted, but good bet there are different answers for each of those things, albeit falling into broad categories.
@Princhester is our resident expert on all things maritime.
*It’s always a bit jarring to go back and listen to/watch an old youtube video from someone whose videos you’ve been watching for so long. He sounds so different.
As to the first part of your question, I’m no expert on US/Canadian law and suspect there may be specific and exceptional laws concerning international trade on the Great Lakes. Having said that, @LSLGuy’s answer seems like it would be correct to me.
The extent to which the law of a vessel’s flag is relevant is generally overstated. As a broad generalisation, local law is far more important to the operation of vessels than the law of the flag because most things that happen, happen in the waters of (or affect) other nations, who apply their own law.
The law of the flag is typically most relevant to matters such as ownership and mortgages, and employment of the crew. Further, as the FoC (flag of convenience) system has become more prevalent, an alternate legal ecosystem has developed. For example, the physical state of vessels (at least in the developed world) is now largely governed through “port state control” ie port nations have regimes of inspection of their own, not dependent on the flag state. As another example, large numbers of crew are Philippino and work under standard contracts governed by Philippine law.
As someone in the industry I’m always bemused by the “shock gasp horror” tone of any media story that states that a vessel flies a flag of convenience, as if this means it’s a rogue vessel roughly equivalent to a pirate ship “operating without any decent restraint, totally beyond the pale of any acceptable human conduct.” Actually any FoC vessel trading to developed nations is highly regulated and typically well run. I’d trust a Panamanian FoC vessel operated by beneficial owners in the developed world before I’d trust an Indonesian or Bangladeshi vessel any day of the week.
No, that wouldn’t fly. Making a foreign stop is irrelevant when moving goods from one US port to another.
46 U.S.C. § 55102:
a vessel may not provide any part of the transportation of merchandise by water, or by land and water, between points in the United States to which the coastwise laws apply, either directly or via a foreign port, unless the vessel—
The Liberian registry is actually a US company that operates with the nominal imprimature of Liberia so that it can claim to be that of another nation. It’s headquartered in Virginia. It has one of the youngest ie best quality fleets in the world.
My daughter works on that ship. It’s US-flagged because it stays in US waters, sailing around the Hawaiian islands only. And because it is US-flagged, even though it is owned by Norwegian Cuise Lines, it is subject to US labor laws. This is a big deal because it means that employees have unions, get US minimum wages or higher, a certain number of hours off per week and overtime. NCL employees on ships elsewhere do not enjoy these benefits and are expected to work longer hours for less money and time off. NCL does not like to let Pride employees transfer to other ships in their fleet because they become dissatisfied with the new working conditions and tend to quit. And having a union was helpful during Covid when the cruise industry shut down for two years. My daughter wasn’t paid but her job was held and when cruises began again she could go right back to work. Not sure that was true everywhere.
Cruise ships flagged in other nations making stops at US ports have to stop at a foreign port during the voyage. It’s why ships sailing from Seattle to Alaska stop in Vancouver. If they didn’t they’d have to be US-flagged and then there would be those labor laws to deal with.
It blows my mind that it is CHEAPER to dock in a port than it is to pay the crew better.
A quick Google (so, take it for what it is worth) says docking in Vancouver costs $0.393/ton AND $12.49/passenger.
If we take the Norwegian Cruise Lines ship Norwegian Sun (smallish as cruise ships go these days) it says the ship is 78,309 tons and carries 1,878 passengers.
So, $30,775 based on tonnage and $23,456 for passengers. So… $54,231 to avoid paying the crew more.
This is entirely nominal. Apart from the US registry company kicking back a fee to Liberia for the use of its nationhood, Monrovia has nothing to do with it.
Most of those are really small, compared to the massive modern cruise ships which sail the Caribbean, etc. I suspect that most of them sail routes which are primarily, or entirely, in the U.S.
Vancouver is also a very nice stopover destination for cruising. Lots of touristy stuff to do in that picturesque city.
So it’s not like they’re just pulling up to some Canadian industrial container port, tying up to the dock for as long as the law requires, then sailing away having checked the legal box.
Agreed. But for generic inward-looking Americans doing the rather unadventurous Alaskan coastal cruise in the safe and familiar US of A, Vancouver is just the right amount of strange exotic foreign port.
Folks used to Denny’s are branching out here, and trying Olive Garden for the first time.
Two things - first, a lot on that list are river boats , and although I don’t don’t recall how it’s described in that video, the Pride of America is normally described as the only American flagged ocean-going cruise ship. Second, because they are all so small the ships have little in common with the larger ocean-going cruise ships - one restaurant , a lounge or two, not much in the way of entertainment. They are really much more like a large yacht than they are like a cruise ship.