From CNN - What's in store for the cruise industry?

[HamOp]

Lots of interesting information here:

https://www.cnn.com/travel/article/cruise-industry-coronavirus-aftermath/index.html

[Krazy Kruizers]

Thank you for the link.

[ontheweb]

1 hour ago, HamOp said:

Lots of interesting information here:

https://www.cnn.com/travel/article/cruise-industry-coronavirus-aftermath/index.html

Thank you. The section very near the end that dealt with possible bankruptcy protection was interesting and contained information that I have not seen before on these boards.

[ski ww]

Makes for interesting reading, thanks for posting.

[npcl]

If this is what they consider to be accurate I fear for the quality of modern journalism

 

What if the cruise company declares bankruptcy?

If your cruise line declares bankruptcy and the ship is departing from a US port, you'll be covered, says lawyer Christopher Kende.

"There's a requirement under the Federal Maritime Commission that cruise lines put up a bond to secure what's called unearned passenger revenues," says Kende, a specialist in maritime law at the firm Cozen O'Connor.

 

 

The Bond requirement under the Federal Maritime Commission is capped at 30 million.  How many passengers would that cover? I believe that the last time it was increased was in 2013

 

https://www.federalregister.gov/documents/2013/02/27/2013-04417/passenger-vessel-operator-financial-responsibility-requirements-for-nonperformance-of-transportation

 

 

 

Cruise Lines International Association, Inc. (CLIA) submitted comments on behalf of its members, sixteen of which are PVOs currently in the Commission's program. All sixteen have UPR exceeding the current $15 million cap. CLIA opined that the Start Printed Page 13270current cap of $15 million was adequate, but did not oppose increasing the cap to $30 million. CLIA indicated that a $30 million cap would more than adequately cover the risks of nonperformance. CLIA also does not oppose the use of the CPI to adjust the $30 million cap every two years.

[npcl]

4 hours ago, ontheweb said:

Thank you. The section very near the end that dealt with possible bankruptcy protection was interesting and contained information that I have not seen before on these boards.

that protection is far far more limited than the article implies.

[HamOp]

31 minutes ago, npcl said:

that protection is far far more limited than the article implies.

That 30 million cap never expected, and was not built for, a shut down of the entire cruise industry.