Salaries for the lowest-paid workers on cruise ships are low by American standards, but many crew members can earn more money on ships than they’d make working on land in their home countries. In addition to their pay, crew receive gratuities from passengers and opportunities to advance to a higher-salaried position.
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Ships that are registered in the U.S. are required to employ American crew and pay them according to United States laws that require minimum wage. That, of course, drives up costs for the lines — and, subsequently, passengers — so it’s more economical for cruise lines to flag their ships abroad.
By registering their vessels outside the U.S., cruise lines can also require their employees to work more than 40 hours per week without overtime pay — something that’s necessary due to the nearly 24/7 operational nature of cruise ships and limited number of crew berths.
What cruise ship is registered in the U.S.?
The only mainstream megaship registered in the United States is Norwegian Cruise Line’s Pride of America, which required a special government exception for its registration. Because it’s flagged in the U.S., it can exclusively sail intra-island cruises around Hawaii without calling on a foreign port — something required for foreign-flagged ships under the Passenger Vessel Services Act.
Additionally, some smaller cruise ships registered in the United States include those in the fleets belonging to UnCruise Adventures and American Cruise Lines. Those companies operate smaller expedition-style vessels, riverboats and Great Lakes vessels that are U.S.-flagged. Due to their smaller sizes, they could be constructed and, therefore, registered in the U.S.
Bottom line
Cruise lines almost always register their ships in countries outside of the United States to reap benefits like lower taxes and reduced labor regulations. With lower operating costs, cruise lines can pass on those savings to passengers and keep cruise fares affordable.
Learn more about cruising with these TPG resources:
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Publish date : 2024-11-09 05:08:00
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