The Maritime Commission will soon rule on refunds for cruise passengers, according to Sola

The delta variant is fueling a resurgence of Covid-19 infections in the United States just as the cruise line industry ramps up operations after months of inactivity.

While travel bookings for the next year have been strong, the industry knows conditions can deteriorate quickly, raising the possibility of trips being canceled.

At least one cruise line has reported that short-term travel bookings have declined as coronavirus cases have increased. And that was before the Centers for Disease Control and Prevention warned on Friday that people in groups at risk for complications from Covid-19 should avoid going on cruises, regardless of their vaccination status. The new CDC guidelines have followed outbreaks of the virus on recent trips.

Federal Maritime Commissioner Louis Sola spoke with CNBC last week to discuss his fact-30 investigation of the cruise industry’s cancellation policies during the pandemic. Sola launched the investigation in August 2020 with the aim of changing FMC regulations regarding non-performance by cruise lines and refunds for canceled trips.

In her proposal, Sola suggested that if a crossing is canceled or if a passenger’s boarding is delayed for more than 24 hours for any reason other than a government order or declaration, a full refund must be paid within. 60 days following a passenger’s request for reimbursement. If shipping is delayed or canceled by a government order statement, a full refund must be made within 180 days.

The exclusive interview also touched on other topics, including Covid security protocols.

CNBC: The cruise industry is back, and your investigation into cruise line policies on canceled trips during the pandemic is awaited. When will we know more about the rule-making process for cruise line performance and refunds? When will we see an update on this?

Alone: We should probably receive an update early this week. Each cruise line had a different policy, so we wanted to create a standardized system as had been done with the airline industry. I hope this update will be made public soon.

Once published, the public will have 60 days to comment on the proposal. Then the committee will consider the comments, adjust the language if necessary and take a final vote. It is important to note that every vote on Fact Finding 30 was unanimous. I appreciate taking the lead in this investigation.

CNBC: Of all the cruise states, Alaska has been affected the most on a per capita basis. How many beatings has the state suffered since you released your report in the spring? It is money that will never be recovered.

Alone: We envision a loss of $ 3.3 billion in revenue and over $ 1 billion in unemployment during the pandemic. Local and state governments suffered an estimated tax loss of $ 55 million.

When I visited Alaska, I went to the union house, where they were sweeping the floor. Florida’s loss was the largest in numerical terms, but no state was hit more on a per capita basis than Alaska.

I don’t think people realize the magnitude of the impact of the loss of unpaid wages, unsold goods, unrendered services, uncollected taxes. When we stopped sailing, it was a logistical and economic nightmare. One billion unemployed for a state of only 700,000 inhabitants is alarming.

CNBC: We’re seeing more delta virus outbreaks on cruise ships like Carnival cruise, or 27 vaccinated people tested positive. In a recent interview, Norwegian Cruise Line Holdings CEO Frank Del Rio said the increase in the delta variant is jeopardizing customer confidence and causing some to cancel. How does the cruise industry ensure the safety of public cruises?

Alone: It is true, we occasionally experience cases of breakage on board ships. One ship, as you pointed out, recently had 27 people vaccinated who tested positive. But the ship was, and we are, prepared for such eventualities.

The most important thing we have is the agreement between the cruise industry and the health officials. We have a plan. What we are seeing here is that by establishing collective immunity on a ship, the process is working properly.

We also have a plan in place if we have a serious illness. We now have the ability to get that person off the ship immediately. It was a disaster at the very beginning of the pandemic where we kept these passengers on the ships.

We have similar health and safety protocols from the Cruise Lines International Association and the Passenger Ship Association. They were both of great help in the initial stages of the investigation.

Some cruise lines have gone beyond these measures. They, as an industry, have a good standard of consumption across the board. The number one measure we are enforcing is that 95% of the ship’s passengers be vaccinated. Collective immunity is the key.

I feel much safer on a cruise ship than on a plane. I’m not hitting on a plane, but you’re interacting with more people with unknown immunization status at an airport. You breathe recycled air in extremely close rooms.

CNBC: what about Disney Cruise? They have a targeted passenger population that cannot be vaccinated due to their age. How do they achieve collective immunity?

Alone: It is a concern that they are trying to resolve. They have a market segment that makes it difficult. Corn [Disney] has some experience in this area gained through its theme park activities. Maybe they will reduce the number of people on board so that they have more vaccines to get herd immunity.

CNBC: You spoke on the distribution of surplus vaccines to sailors and to our neighboring cruise ports in the Caribbean and Bahamas. How are things going?

Alone: I wrote two letters to the president [Joe] Biden on this important issue. I also went directly to the governors of Florida, Texas, and Alaska and they donated surplus vaccines. We work with the consuls general of the embassies of the Dominican Republic, the Turks and Caicos Islands and the Bahamas. We have had difficulty obtaining vaccines due to HHS requirements, but these vaccines are reaching seafarers.

CNBC: There was a recent indecent assault on Royal Caribbean passengers not allowed on board a ship because they were not vaccinated. Is it the passenger’s responsibility to go to the cruise line’s website to see the requirements?

Alone: It is up to the consumer to know the Covid policies of each cruise line. It is very important for them to realize that 99% of cruise ship traffic is international and that all countries have their own vaccination protocols. It is at the discretion of the foreign destination if they want passengers and crew to be vaccinated before they arrive in their country. Cruise lines are very good at articulating their requirements. It’s like when you go to an airline’s website. They also posted their demands. This should be considered as part of the boarding process.

CNBC: The CDC also has a color coding system monitor the condition of a vessel. There is a lot of information available to consumers.

Alone: We live in the information age and have found the color coding system to be very useful. We have been using this color coding system for 18 months. The industry is doing what it can to raise awareness of food safety.

Bottom line, if you get sick and get vaccinated, the symptoms should be mild. If you are not vaccinated, you will receive appropriate care.

Responding to the sick was the issue at the start of the pandemic for the cruise industry. The industry now has a detailed plan. As a nation, we must live with Covid in all aspects of life. Being prepared is the key to this.