Passenger Vessel Services Act of 1886
Some exceptions have been made to the requirement of the Passenger Services Act. For example, Canadian vessels may transport passengers between Rochester, New York and Alexandria Bay, New York until such time as a U.S. carrier enters the market (46 USC § 55121(a)), and between ports in southeastern Alaska (46 USC § 55121(b)). As of October 30, 2003, foreign vessels are also allowed to transport passengers (but not cargo) between the U.S. mainland and Puerto Rico (46 USC § 55104). However, this exemption will disappear if U.S.-flagged ships resume passenger operations of this type. During the COVID-19 pandemic, Canada prohibited all cruise ship traffic, which had the effect of blocking all cruise ships to Alaska (which, because of the PVSA, had to originate or stop in Vancouver). In response, President Biden signed the Alaska Tourism Restoration Act, which temporarily waived the foreign port requirement, allowing cruise ships to sail straight from Seattle to Alaska.
Waivers from the PVSA can be requested in case of national-defense interest. The law has had an interesting consequence with regard to the cruise-ship industry within the state of Hawaii. Foreign-flagged cruise ships may carry passengers between ports in the Hawaiian Islands as long as no passenger permanently leaves the vessel at ports other than the origination port and the vessel makes at least one call at a foreign port. Norwegian Cruise Line created a subsidiary, NCL America, and introduced three new U.S.-flagged vessels: "Pride of Aloha" in 2004, "Pride of America" in 2005, and "Pride of Hawaii" in 2006. Previously, with its foreign-flagged vessels, NCL needed to include a four-day detour to Tabuaeran (Fanning Atoll) in the Line Islands (Republic of Kiribati) on its Hawaiian itineraries. Reportedly due to financial losses, in 2007 NCL renamed "Pride of Hawaii" to "Norwegian Jade", and reflagged and relocated the ship to Europe. In 2008, NCL also relocated "Pride of Aloha" to Florida, reflagging it and renaming it to "Norwegian Sky" at the same time. Thus the "Pride of America" is the sole NCL ship currently in Hawaii service.
Exceptions
Under the Passenger Vessel Services Act of 1886 (46 USC § 55103), non-coastwise-qualified vessels cannot transport passengers directly between U.S. ports.