Norwegian Cruise Line in Hawaii: A Case Study on the True Price of "Pride"

Abstract

In 2003, Congress granted Norwegian Cruise Line (NCL) a maritime exemption to the Passenger Vessel Services Act (PVSA), allowing the company the exclusive right to employ three foreign-built ships in the lucrative Hawaiian cruise market. The last of NCL's three vessels made its way to Hawaii in 2006. Three years and $360 million in red ink later, only one ship remains, the Pride of America. In desperation, NCL has sought to strengthen its hold over the Hawaiian cruise market by pushing U.S. Customs and Border Protection (CBP) to propose changes to the PVSA. In doing so, NCL hopes to make an already protective act even more protective.