Posted on 02/06/2021 11:40:18 AM PST by Capt. Tom
In a blow to the cruise industry’s efforts to restart operations, the Canadian government on Thursday banned cruise ships from its waters for the rest of the year, citing the ongoing coronavirus pandemic.
The midday announcement, which was made by the country’s Minister of Transport, could effectively end this year’s Alaska cruise season before it even begins and also could stop sailings to New England that include calls in the Canadian Maritimes.
The ban also effectively closes the Canadian Arctic to boat-related tourism until 2022.
The ban will remain for more than a year, until Feb. 28, 2022, and is an extension of an already existing prohibition on cruise ship visits that has been in effect since the coronavirus pandemic began.
The Canadian government said the ban would apply to any cruise vessel carrying 100 or more people.
The ban is likely to force most cruise lines to cancel all 2021 sailings to Alaska, as many cruise lines rely on Canadian ports to make Alaska itineraries viable.
By law, foreign-flagged cruise ships cannot cruise in American waters without stopping at least once per voyage at a foreign port. What this means for Alaska cruising, on a practical level, is that the ships operated by Princess Cruises, Holland America, Royal Caribbean and most other big players in the region cannot cruise there unless their itineraries include at least one stop in Canada. Most big cruise lines flag their ships in foreign countries.
Only a waiver of the law would allow for continued Alaska cruises by the big lines.
U.S.-flagged vessels, such as those operated by small-ship cruise operators UnCruise Adventures, Alaskan Dream Cruises, Lindblad Expeditions and American Cruise Lines, still will be able to operate in Alaska.
Many cruises to Alaska start and end in Seattle, and include a Canada stop along the way. Others begin or end in Vancouver, British Columbia. San Francisco and Los Angeles also are gateways for Alaska cruises that include a stop in Canada.
In addition to cruise ships carrying 100 people or more, the ban also applies to adventure-seeking pleasure craft that operate in the Canadian Arctic. Passenger vessels carrying more than 12 people will be prohibited from entering Arctic coastal waters, including Nunatsiavut, Nunavik and the Labrador Coast.
That’ll mean that “expedition-style” sailings into the Northwest Passage and other Arctic areas around Canada on even very small vessels will not be able to take place in 2021.
“Temporary prohibitions to cruise vessels and pleasure craft are essential to continue to protect the most vulnerable among our communities and avoid overwhelming our health care systems. This is the right and responsible thing to do,” Canadian Minister of Transport Omar Alghabra said in a statement.
One caveat: Alghabra has the authority to rescind the ban should the situation with COVID-19 improve.
The Canadian government on Thursday also said it continued to advise Canadian citizens and permanent residents to avoid travel on cruise ships outside Canada until further notice.
Thursday’s announcement leaves Alaska facing an unprecedented two straight years without almost any cruise tourists. All major lines canceled Alaska sailings in 2020 in the wake of Canada’s initial cruise ship ban and a “no-sail” order from the U.S. Centers for Disease Control and Prevention.
Among major North American destinations, Alaska is relatively unusual in its reliance on cruise ships to deliver a large percentage of its visitors. In a typical year, Alaska draws about 2 million visitors. Of those, nearly 1.2 million — or almost 60% — are cruisers. That’s a massive chunk of Alaska’s tourist base that could be impacted by Canada’s decision.
Last year’s cruise cancellations had a devastating effect on coastal Alaska tourist towns such as Juneau, Skagway and Ketchikan, where nearly all visitors are cruisers. But even interior destinations such as Denali and Fairbanks saw large segments of their tourist business disappear due to cruise cancellations.
Carnival Corp., the parent company of the two cruise lines with the biggest Alaska operations, Princess and Holland America, said in a statement Thursday afternoon that it was assessing whether there was any way to preserve part of the upcoming Alaska season.
“We are disappointed to learn about Canada’s decision to extend the interim order that prohibits cruise ships from sailing in its waters,” the Carnival Corp. statement said. “This extension, if not amended as pandemic conditions improve, or through action by U.S. authorities, would require our brands to cancel our Alaska (West Coast) and Canada/New England (East Coast) cruise vacation seasons this year.”
A spokesperson for the Cruise Lines International Association (CLIA), the cruise industry’s main trade group, told The Points Guy that it and its member cruise lines were considering all options.
“The industry may consider asking for temporary relief from the Passenger Vessel Services Act,” CLIA manager for strategic communications Laziza Lambert said, referring to the 135-year-old U.S. law that forces foreign-flagged cruise ships to make a stop at a Canadian port when sailing to Alaska.
Still, some industry observers late Thursday already were assuming the 2021 season for cruises in Alaska was done.
“This announcement essentially means that 2021 Alaskan cruises and New England/Maritime Provinces cruises will not be happening,” Truist Securities analyst C. Patrick Scholes said in a bulletin sent to investors.
Noting that Alaska cruises have historically accounted for an important portion of cruise line revenue in the summer, Scholes said the ban would increase the likelihood that the big, publicly traded cruise companies such as Carnival Corp. and Norwegian Cruise Line Holdings would have to raise more capital from Wall Street to stay afloat.
“While Alaskan deployment has historically been approx. 5-9% of annual deployment and 11-22% of (third quarter deployment), the impact on revenues is greater than these percentages as Alaskan cruises are premium priced cruises,” Scholes wrote.
Most insanity from Canadastan!
Maybe the shipping industry should ban together and prohibit all ships, to include tankers and cargo?
I would assume all of the normal employees have burned through UI and are broke, or working McJobs now.
Trueshit is doing it to hurt Alberta as much as anything else. All in the supposed reason of environmentalist, when he really wants to sell of the oil sands to the Chinese.
Dumass comment
Alaskan and New England cruises will be toast .
Cozumel Mexico is right now offering MSC line ships, a chance to operate there, in the Mexican Caribbean.
IMHO The big 3 USA location ships have a lot invested in USA ports and will have to seek other alternatives.
Below are some interesting paragraphs in the posted thread. -Tom
The ban will remain for more than a year, until Feb. 28, 2022, and is an extension of an already existing prohibition on cruise ship visits that has been in effect since the coronavirus pandemic began.
the Carnival Corp. statement said. “This extension, if not amended as pandemic conditions improve, or through action by U.S. authorities, would require our brands to cancel our Alaska (West Coast) and Canada/New England (East Coast) cruise vacation seasons this year.”
Noting that Alaska cruises have historically accounted for an important portion of cruise line revenue in the summer, Scholes said the ban would increase the likelihood that the big, publicly traded cruise companies such as Carnival Corp. and Norwegian Cruise Line Holdings would have to raise more capital from Wall Street to stay afloat.
Why can’t they just sail outside of the 12 mile limit for Canada?
Why can’t they just sail outside of the 12 mile limit for Canada?
You do know that Alberta is land locked and the biggest body of water is a small portion of Lake Athabasca? Think the Bolivian cruise industry is being targeted, as well?
Because foreign ships generally can't engage in commerce between US ports. If they re-flagged to register as American ships, then they'd have to use American crews. And they can't afford to operate without low cost third and fourth world crew.
They can probably buy a waiver from the Biden crime family.
Either add a day to Lavrentiya (which has no cruise-enabled port but whatever) or arrange to have a friendly country lease an 'embassy' and deep-water dock right at the waterline in Nome or Juneau or even the Homer spit.
Yes, in order for Alberta to get it’s oil to the coast, it has to have tankers off the port in Rupert. Trueshit has done a lot to prevent this from happening.
I think it is all part of the Great Reset that is supposed to happen.
The Jones Act strikes again!
By law, foreign-flagged cruise ships cannot cruise in American waters without stopping at least once per voyage at a foreign port.
I was thinking stop in Russia but it looks like it’s too far around the Alaska Peninsula.
I was on an Alaskan cruise a few years ago. It struck me that virtually everyone who worked on the cruise, when I inquired, was from some eastern European country, or the Philippines,or or Latin America.
I think the ship I was on was flagged in Greece, if I recall correctly.
I remember hearing that Alaskan cruises always make a stop in Canada, but I didn’t know the reason for that.
“Why can’t they just sail outside of the 12 mile limit for Canada?”
Under the Jones Act, only US flagged ships can transport goods or people between two ports in the US. All cruise ships (Except one - the Pride of America, which sails around Hawaii) are foreign-flagged so they don’t have to worry about US labor laws. To get around violating the Jones Act, every cruise has to make at least one stop in a foreign port (except the Pride of America, which is why it’s US flagged because there’s nowhere foreign to stop). With no stops in Canada, no ships are sailing to Alaska.
Most insanity from Canadastan!
I consider it sweet revenge for the cancellation of the Keystone Pipeline..........
Canada has more to offer the US than just beer and hockey players......
Well played Canada!
Victoria and Vancouver will get hit hard. Too bad, from a visit to Expo ‘86 to our last stop in Canada, Victoria.
I guess it’s some comfort that we know the eagles and flowers will be there next trip, whenever that is,, probably late summer 2022 at this rate.
Not so for many of those who work the shops and businesses of Skagway, Haines and Ketchikan to name a few of our favorite ports.
I’d ban all mainland Xhinese from cruising there in 2022 and maybe beyond. We see what some in China really seek to spread and it ain’t good chi.
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