Why Cruise Ships Sail Under Foreign Flags
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Creator's Key Takeaways
the average daily crew cost for u.s flagships was approximately five times that of foreign flag vessels
ships registered in the u.s have to hire american citizens to crew the ships to comply with american law
u.s flagships are hit with a 50 percent duty on repairs done in a foreign shipyard
insurance costs can be four to five times higher in the u.s compared to foreign registries
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Cruise ships sailing from the United States under foreign flags are almost universal. In fact, only one major cruise ship -- NCL's Pride of America -- is registered in the U.S. But have you ever wondered why cruise ships are flagged in foreign countries? We dive into the reasons that cruise lines find it more attractive to be foreign based, despite having huge American operations. Turn out that foreign-flagged ships can sail for much cheaper than being an American ship. Crew labor costs are significantly lower according to the U.S. Department of Transportation. As well, operating costs like insurance and maintenance are also less expensive. #cruise