[Federal Register Volume 85, Number 88 (Wednesday, May 6, 2020)]
[Notices]
[Pages 26978-26979]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-09623]
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FEDERAL MARITIME COMMISSION
[Fact Finding No. 30]
COVID-19 Impact on Cruise Industry; Order
Congress tasked the Federal Maritime Commission (Commission) with
administering the Shipping Act of 1984 (Shipping Act), 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
[[Page 26979]]
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. See 46 U.S.C. 40102(7)(A).
PVOs are also subject to the requirements of 46 U.S.C. chap. 441
and regulations promulgated thereunder in 46 CFR part 540. The purpose
of that statute is, among other things, ``to prevent financial loss and
hardship to the American traveling public, who, after payment of cruise
passage money, are stranded by the abandonment or cancellation of a
cruise.'' Terry Marler and James Beasley dba Titanic Steamship Line, 22
S.R.R. 359, 369 (ALJ 1983), aff'd, 22 S.R.R. 798 (FMC 1984).
The Commission understands that the current pandemic caused by the
novel coronavirus (COVID-19) has severely impacted the cruise industry.
On March 14, 2020, the Centers for Disease Control and Prevention (CDC)
issued a No Sail Order and Suspension of Further Embarkation causing
PVOs to cease all operations. Due to the unpredictable nature of this
disease, the CDC has extended the term of the order demonstrating the
uncertainty associated with this pandemic. Consequently, questions
concerning future travel and passengers' ability to obtain refunds of
monies remitted for transportation disrupted by COVID-19 are legion.
The cruise industry plays a unique and important role in the U.S.
economy. Given the Commission's mandate to: (1) Ensure an efficient and
economic transportation system for ocean commerce for both goods and
passengers under the Shipping Act; and (2) ensure that PVOs maintain
adequate financial responsibility to indemnify passengers for
nonperformance and meet any liability which may be incurred for death
or injury to passengers or other persons under 46 U.S.C. chap. 441, the
Commission has a clear and compelling responsibility to actively
investigate and respond to the current challenges impacting the cruise
industry and the U.S. ports that rely on it.\1\
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\1\ The provisions of the Shipping Act govern proceedings under
46 U.S.C. chap. 441. See 46 U.S.C. 44106.
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Therefore it is ordered, That, pursuant to 46 U.S.C. 40104, 41101-
41109, 41301-41309, 44104-44106 and 46 CFR 502.281 et seq.,
Commissioner Louis E. Sola engage cruise industry stakeholders,
including PVOs, passengers, and marine terminal operators, in public or
non-public discussions to identify commercial solutions to COVID-19-
related issues that interfere with the operation of the cruise
industry;
It is further ordered, That, the Commissioner form one or more
teams, composed of leaders from the cruise industry and other
stakeholders, to develop commercial solutions to the challenges created
by the COVID-19 pandemic;
It is further ordered, That the Commissioner interact with any or
all maritime related COVID-19 task forces of which this Commission is
affiliated or monitors for the purpose of collecting data related to
COVID-19 and its impact on the cruise industry;
It is further ordered, That, the Commissioner provide a preliminary
report and periodic updates to the Commission on the results of efforts
undertaken by this Order;
It is further ordered, That, the Commissioner have full authority
under 46 CFR 502.281-291 to perform such duties as may be necessary in
accordance with U.S. law and Commission regulations. The Commissioner
will be assisted by staff members as may be assigned by the Chairman;
It is further ordered, That, this Proceeding be discontinued upon
the acceptance of a final report and possible recommendations by the
Commissioner, unless otherwise ordered by the Commission; and
It is finally ordered, That, notice of this Order be published in
the Federal Register.
By the Commission.
Rachel Dickon,
Secretary.
[FR Doc. 2020-09623 Filed 5-5-20; 8:45 am]
BILLING CODE 6730-02-P