Background on Bill 7 and the Passenger Vessel Services Act
Victoria’s cruise business is influenced by the Passenger Vessel Services Act (PVSA), which is an 1886 piece of U.S. legislation designed to protect the American shipping and transport sector.
It legislates that foreign vessels cannot carry passengers directly between ports or places in the United States.
Most cruise ships are not registered in the US, which makes them international vessels in the eyes of the PVSA.
A cruise ship, not registered in the US, going from Alaska to Seattle, or vice versa, must call at a port in another country to comply with this legislation. For the Alaska cruise itinerary, calling at a port in British Columbia is the only option.
During COVID-19, Canada prohibited cruise ships from visiting its ports. In response, President Biden signed the Alaska Tourism Restoration Act, which temporarily waived the foreign port requirement in the PVSA Act.
British Columbia’s government has introduced a bill in response to potential tariffs from the Trump administration. Bill 7 would give the B.C. government the power to take actions to protect the B.C. economy from actions by another country without having them debated in parliament.
B.C.’s actions could include placing a charge on US commercial trucks going through B.C. when travelling between Washington state and Alaska.
In response, Alaska Senator Dan Sullivan has said he would seek a waiver to the foreign port requirement in the Passenger Vessel Services Act.
A waiver to the foreign port requirement would impact Victoria more than Vancouver.
Vancouver is a home port where cruise passengers join and leave the vessel. Victoria is a port of call that ships visit before returning to their home port, which is usually Seattle.
The Passenger Vessel Services Act should not be confused with the ‘Jones Act’, which is formally called the Merchant Marine Act. The Jones Act is a separate piece of U.S. legislation that impacts freight vessels.