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» Cruise Talk   » Cruise Ships   » Why no Yankee Cruise Ships/Ocean Liners

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Author Topic: Why no Yankee Cruise Ships/Ocean Liners
Rex
First Class Passenger
Member # 1113

posted 07-06-2000 01:01 PM      Profile for Rex     Send New Private Message      Edit/Delete Post  Reply With Quote 
Is it the unions that have kept the US from being a major player in the passenger/cruise liner industry? What do you think? I would particularly like to hear from those who sailed on ships in the 50's and 60's. I have always heard:

1. That American-styles service was always the worst, lacking the finesse of European crews or the attentiveness of Caribbean crews. Is that true?

2. That the union rules would manage to interfere with the service. For example, on the Big U, you had to go through three separate stewards in order to get room service. Why would that be?

3. That US crews are highly paid, which cuts into a lines' profits. US Lines, APL, American Export and Matson, all the important US passenger lines, went under because it became increasingly difficult to turn a profit, not just because of airlines, but the high salaries they had to pay the crews.

Also, how do you think SeaAmerica and American Classic Voyages will fare? Is it too late for the Yanks to make a dent in the cruise industry now?

I am eager to hear all opinions....
I am eager to hear opinions.

[This message has been edited by Rex (edited 07-06-2000).]


Posts: 1413 | From: Philadelphia PA, USA | Registered: Feb 2000  |  IP: Logged
cruznut6
First Class Passenger
Member # 543

posted 07-06-2000 01:56 PM      Profile for cruznut6   Author's Homepage   Email cruznut6   Send New Private Message      Edit/Delete Post  Reply With Quote 
The newly(?) formed United States Line is started construction on 2 ships (72,000 grt) in Mississippi, with the option for a third. I believe delivery is for early 2002 for the first ship. I believe this delay is in part do to U.S. shipyards not upgrading their facilities for cruise ships since the early 1960's. Salaries are also a big reason for this. Their is now 2 ships registered in the U.S. that sail the Hawaiin seven day loop, the Independence and the recently purchased ship from HAL, the Niew Amsterdam. I belive it's been named the Constitution, but I'm not 100% sure. Personally, I hope this spurs more ships to be built here in the U.S.

Cheers,

cruznut6


Posts: 161 | From: Mount Laurel, NJ, USA | Registered: Apr 99  |  IP: Logged
Malcolm @ cruisepage
Cruise Director
Member # 301

posted 07-06-2000 06:07 PM      Profile for Malcolm @ cruisepage     Send New Private Message      Edit/Delete Post  Reply With Quote 
Hi Rex, the same applies to Britain. You will be aware that we built many of the worlds greatest ocean liners, but not anymore! The skills required to build modern cruise ships are somewhat different.

We have either lost those skills or not allowed them to evolve. As for why it has happened...???


Posts: 19210 | From: Essex (Just Outside London) | Registered: A Long Time Ago!  |  IP: Logged
JoeO
First Class Passenger
Member # 224

posted 07-06-2000 07:55 PM      Profile for JoeO   Email JoeO   Send New Private Message      Edit/Delete Post  Reply With Quote 
Didn't they rename the Niew Amsterdam
"Patriot"?

Posts: 93 | From: St Aaugustine, Fl., U.S.A. | Registered: Dec 98  |  IP: Logged
JoeO
First Class Passenger
Member # 224

posted 07-06-2000 07:59 PM      Profile for JoeO   Email JoeO   Send New Private Message      Edit/Delete Post  Reply With Quote 
Rex,

re: your original question "Why no U. S. cruise ships?" THe simplest & mst correct answer is the U. S. Law commonly referred to as "The Jones Act."

;Look up that title at any search engine & you'll get a slew of "hits" and opinions.


Posts: 93 | From: St Aaugustine, Fl., U.S.A. | Registered: Dec 98  |  IP: Logged
BigUFan
First Class Passenger
Member # 1382

posted 07-06-2000 11:14 PM      Profile for BigUFan   Author's Homepage   Email BigUFan   Send New Private Message      Edit/Delete Post  Reply With Quote 
JoeO, yes, the Nieuw Amsterdam has been (or will be) renamed the Patriot.

This is an interesting line of thought here. I think there's probably a number of things involved, not the least of which are the shipbuilding unions. Certainly the Jones Act has something to do with this as well, as the cost of registering and staffing a passenger vessel in the US is astronomical. Where's the incentive? Now with the government getting involved with helping to revitalize the shipbuilding industry, certainly some of these issues should change?


Posts: 904 | From: Orlando, FL | Registered: Jun 2000  |  IP: Logged
Grant
First Class Passenger
Member # 1000

posted 07-07-2000 01:33 AM      Profile for Grant   Email Grant   Send New Private Message      Edit/Delete Post  Reply With Quote 
Perhaps the greatest reason that there are few US cruise ships, can be found within the pages of this web site. It takes very high fares to pay US scale wages and benefits, not just for ship staff, but for everything that goes on to or involves the vessel. Yet all of us expect to pay rock bottom fares. The fares that we all end up paying, could not support the cost of building in the US, or crewing in the US without subtantial government subsidies. At the fares that we pay, cruise lines have no choice but to employee crew from countries where the cheap wages offered are (often a month's salary is equal to a day's wage in the US) accepted as a decent living. It is no mystery why fares on the few US lines are never down to the low level found with foreign crewed lines. Unless we all bite the bullet, and willingly pay much higher fares, I don't believe there ever will be a large American presence in the cruise industry. The Jones Act was meant to protect US shipbuilding and vessel operation, and it has actually lead to strenthening of the rest of the world's passenger vessel operations.
Posts: 834 | From: Victoria, BC, Canada | Registered: Jan 2000  |  IP: Logged
vulcania
First Class Passenger
Member # 822

posted 07-07-2000 10:35 AM      Profile for vulcania   Email vulcania   Send New Private Message      Edit/Delete Post  Reply With Quote 
Since 1990 I have been wwriting the American Merchant Marine History Series, the only scholarly books about this subject. To blame any lack of U.S. flag cruise/passenger vessels on the "Jones Act" (The Shipping Act of 1920) is absurd... THAT act promoted American shipping like no other before it.
That important law, much maligned by people who have neither read it nor have the experience with American maritime history to realize its impact, is not even responsible for the ban on foreign flag vessels carrying people or cargo between two different U.S. ports. THAT is the result of a much older law, the Passenger Services Act of the early 1880s... Transport between two ports within the same country comes under the heading of cabotage, and most countries protect their own flag at sea (though the EU is set to drop cabotage restrictions for member nations, even in Greece).

Besides UNIONS...and an American liner would have members from up to 17 different unions working aboard a single vessel. Beyond that, the heyday of American flag shipping saw any "foreign-going" U.S. flag ship sail come under the jurisdiction of the rules of up to no less than 74 different agencies, bureaux, departments of the federal and state governments, not to mention port officials.

Add to that uncertain tax structures...

I comment on this topic rather extensively in some of my books, particularly in The "STATELY PRESIDENT" Liners American Passenger Liners of the Interwar Years Part 1, The "502s"

Don't blame the late Senator Wesley Jones. It shows a real lack of understanding our maritime history and the nature of the business.


Posts: 182 | From: Baltimore, MD USA | Registered: Sep 99  |  IP: Logged
Rex
First Class Passenger
Member # 1113

posted 07-07-2000 12:46 PM      Profile for Rex     Send New Private Message      Edit/Delete Post  Reply With Quote 
Thanks for your input, Vulcania. So it is mostly unions and good old Yankee bureacracy. So does all that you mention in your post relate to the early lay-up (and sale) of ships like AMERICA, WASHINGTON and MANHATTAN? And how do things bode for SeaAmerica and American Classic Voyages, and their subsidiaries? How does the INDEPENDENCE and Delta River boats manage to survive, and even turn a profit?
Posts: 1413 | From: Philadelphia PA, USA | Registered: Feb 2000  |  IP: Logged
vulcania
First Class Passenger
Member # 822

posted 07-07-2000 03:25 PM      Profile for vulcania   Email vulcania   Send New Private Message      Edit/Delete Post  Reply With Quote 
You mentioned "the early lay-up (and sale) of ships like AMERICA, WASHINGTON and MANHATTAN? And how do things bode for SeaAmerica and American Classic Voyages, and their subsidiaries? How does the INDEPENDENCE and Delta River boats manage to survive, and even turn a profit?"

Let me start with the firt question. Built for the MARITIME COMMISSION for U.S. Lines - not built for the ownership of U.S. Lines, an important technicality, the AMERICA of 1940 was built for subsidized operation. Under the American government scheme of things, a ship was eligible for subsidy for a period of 20 years and the AMERICA was past that expiration date when she was sold to Chandris. As for the MANHATTAN and WASHINGTON, those marvellous Cabin liners were built for U.S. Lines with a Construction Loan Fund advance (up to 75% of building cost laid out by the U.S. Shipping Board, then the maritime agency of the federal Govt. As the transport WAKEFIELD, the MANHATTAN had a serious fire during World War II and reconversion to her prior status was financially out of the question. As for the WASHINGTON, you may know that she had a partial postwar conversion and operated through 1950 for US Lines and then did some work carrying military dependents. Debuting in 1933 by 1950, the not fully reconverted ship was no longer competitive in the high end of the trade so no one wanted to invest any money in her. U.S. Lines did not own her after the war, the government did.

As for American Classic Voyages/American Hawaii...how they can operate at a profit? When they do it is a function of their rate structure, which are rather higher than the rest.


Posts: 182 | From: Baltimore, MD USA | Registered: Sep 99  |  IP: Logged
Grant
First Class Passenger
Member # 1000

posted 07-08-2000 12:59 AM      Profile for Grant   Email Grant   Send New Private Message      Edit/Delete Post  Reply With Quote 
Rex; Let us be fair! You can't blame a union for asking that their members receive more than the $150.00 per MONTH, that 2 of the lines sailing out of Florida pay their staff. Union or no union, that is not a wage that any person living in North America could possibly exist on. It is the world econonies that determine whether a crew member can live decently on the wages paid. While $150.00 goes a long way in some of the former Soviet countries, in Indonesia and some of the Caribbean Islands, it would certainly not be close to a subsistance living in the US, Europe, or Canada! Please don't let the issue of tips cloud the issue either; on one of the big lines, those earning tips must pay room and board out of that $150.00!! All of us, myself included, propell the downward spiral in crew wages and benefits, by resisting higher fares. It really is a cruel world out there; but it does seem to work for all our benefits at the present time. A line up of those seeking employment, and a never ending stream of happy passengers marching up the gangways of the world's ports, signal a healthy, vibrant and enjoyable industry for us to be part of; sailor or passenger.
Posts: 834 | From: Victoria, BC, Canada | Registered: Jan 2000  |  IP: Logged
Malcolm @ cruisepage
Cruise Director
Member # 301

posted 07-08-2000 05:46 AM      Profile for Malcolm @ cruisepage     Send New Private Message      Edit/Delete Post  Reply With Quote 
International companies will often employ cheap labour whereever possible to increase there margins. This applies equally to cruise ship staff or hi-tech computer assembly etc. However, I'm not sure that this has anything to do with why ships are not built in the UK or USA?

The current builders of cruise ships i.e. France, Germany and Scandinavia are hardly countries of low wages! I'm sure that these yards have unions too. The whole issues is a very complex one. I don't claim to fully know the answer.

I still don't see why a UK or USA built cruise ship can't be run profitably with international staff?


Posts: 19210 | From: Essex (Just Outside London) | Registered: A Long Time Ago!  |  IP: Logged
Rex
First Class Passenger
Member # 1113

posted 07-08-2000 04:04 PM      Profile for Rex     Send New Private Message      Edit/Delete Post  Reply With Quote 
Wow. There are more opinions here than the number of undies in my drawer ;-).

But to me, based on what I have read here, it seems like it IS primarily the unions and government bureacracy involved to keep American liners from operating. As many as 17 different unions on one ship? And the logistics surrounding the American liners, well, I had to read it TWICE, it was so confusing.

But to their credit, American crews are thoroughly trained in all safety matters, maybe the best trained in the world (except for the British Merchant Marine), is this not true?


Posts: 1413 | From: Philadelphia PA, USA | Registered: Feb 2000  |  IP: Logged
vulcania
First Class Passenger
Member # 822

posted 07-09-2000 11:17 AM      Profile for vulcania   Email vulcania   Send New Private Message      Edit/Delete Post  Reply With Quote 
US flag and international staff? NO WAY... extensive US maritime laws are very specific on such topics..If the "Stars and Stripes" fly at the stern, US citizens work the ship... In earlier years, US steam ships were extensively foreign manned, so much so that in 1915 Senator Robert La Follette of Wisconsin authored the "Seaman's Protection Act", requiring half the crew to be American and the other half to understand English. Outraged, Rennie Schwerin, president of the Pacific Mail S.S. Co. seized upon that "interference" (his crews were predominantly Chinese under American officers), and sold his transPac ships... though another law, the Panama Canal Act of 1912 forbidding use of the canal to ships owned by RAILROADS (and Southern Pacific was the majority shareholder in PacMail), and the high prices for tonnage while Europe was at war were the real reasons for the sale...
Anyway, not until the mid/late 1920s did even US passenger ships have full American crews...

Well trained though American crews can be, the tradition of service is not really what it could be, and incidences of rudeness and union militancy wrecked the reputation of American liners... World over, the cry was heard.. "No one travels in an American ship"...

So don't look for international staff on US flag vessels anytime soon...


Posts: 182 | From: Baltimore, MD USA | Registered: Sep 99  |  IP: Logged
Malcolm @ cruisepage
Cruise Director
Member # 301

posted 07-09-2000 05:30 PM      Profile for Malcolm @ cruisepage     Send New Private Message      Edit/Delete Post  Reply With Quote 
*Globaisation*

Vulcania, maybe America's failure to accept that all nations now form part of a globalised economy was there downfall?

Take Cunard for example, although 'British' they have become an international corporation and 'brand'. Owned by Carnival, with crews from Europe and a proposed newbuild from France!


Posts: 19210 | From: Essex (Just Outside London) | Registered: A Long Time Ago!  |  IP: Logged
vulcania
First Class Passenger
Member # 822

posted 07-09-2000 10:52 PM      Profile for vulcania   Email vulcania   Send New Private Message      Edit/Delete Post  Reply With Quote 
US passenger shipping was gone long before "globalization" As for Cunard, it hasn't been British owned in decades..since themid 1970's Trafalgar House was primarily Arab owned, thus so was Cunard...the "Britishness" of Cunard was for marketing purposes
Posts: 182 | From: Baltimore, MD USA | Registered: Sep 99  |  IP: Logged

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