The new pirates of the Caribbean
Have we ever stopped to ask why some shipping companies have their headquarters in one country but register their ships in another? In the maritime industry this is known as “flags of convenience”. While this practice is often seen as contentious and somewhat controversial, it became popular exactly 100 years ago when US ships were trying to get around Prohibition (ban of alcohol) in effect in the United States.
What is rather ironic is that, despite the Prohibition laws no longer being in effect in the US, the practice continues as shipping companies have also found other advantages to it. First, it allows them to avoid countries that have stricter labour laws to protect employees, and it also allows them to avoid countries that have stricter safety standards and stricter environmental standards. In short, shipping companies have found ways to maximise their profits at the expense of countries with weak laws.
Many of us would have heard the tales and adventures of Henry Morgan, Francis Drake, and the most famous of all, Blackbeard. What most people would not have known is that, while we refer to them as pirates, they were in fact not pirates, but rather privateers. What’s the difference? The pirates operate illegally while the privateers were granted permission by their governments to rob and pillage, providing that the Government gets a share of their treasure. This then begs the question, which Government and, more importantly, which country, is getting a share of the treasure?
Today, it is hard to distinguish the pirates and the privateers as they have traded in their eye patches for eyeglasses, their swords for pens, and their small wooden ships for massive floating vessels. The shipping industry has evolved over centuries and nowhere is this more evident than in the cruise industry. However, what has not changed is their thirst for profit at someone else’s expense.
While one can’t place blame on any company that wants to grow their profits in an upwards direction, when it’s at the expense and sustainability plus the well-being of an entire region we should pump the brakes for a closer look. Something most, if not all Caribbean islands have not done, consequently creating a disadvantage to themselves without knowing.
In the last two plus years, as a co-founder and very active member of an organisation called CPR (Cruise Port Referendum), which is a people-initiated movement that has successfully petitioned for a referendum on whether or not the Cayman Islands should build a cruise berthing facility to accommodate the oasis-size cruise ships owned by Royal Caribbean and Carnival cruise lines, here is what I’ve uncovered. The western itinerary is currently experiencing a massive drop in mega cruise ships simply because they refuse to call to western ports in light of not being able to sell a full cruise due to the fact the Cayman Islands isn’t included on ports of call. They would lead you to believe that it’s because the Cayman Islands doesn’t have a cruise berthing facility and their mega ships can’t be tendered. In fact, there is an article that was published in The Gleaner, in summer 2019, that highlights this very issue and, most recently, a follow-up article reiterating that same idea in early 2020. But here is the cold, hard truth behind the motivation of their actions to pull mega ships from western itinerary.
In 2011, an agreement was signed with the Cayman Islands Government to tender their mega ships, going as far as to getting the Cayman Islands Port Authority to purchase a security building and build gangways and ramps. This was an investment in excess of half a million US dollars, which is still not used to date. They also got the tender company to purchase bigger tenders to accommodate.
Back in 2009 promises were made to the people of Jamaica that their port would bring new jobs, more revenue, and create more opportunities for the locals in and around the Falmouth area, but these started to fall short a few, short years later because the Government in Cayman had changed and the tender deal was put on hold. As a result, Royal Caribbean and Carnival would not call to our port as some sort of punishment for putting on hold the previous arrangement to tender mega ships. This was the only reported reason they could not sell a full mega cruise, because Cayman wasn’t on the ports of call.
We see where the cruise lines are holding out now, saying they won’t tender mega ships because “they can’t be tendered”. I have a copy of the 2011 agreement with the Cayman Islands Government that proves otherwise. In my humble opinion, the Jamaican people are owed an answer, dare I say an apology, and should be compensated for all lost revenue during the period they stopped mega ships from calling to western islands.
As we all know, the main objective for the cruise line is to maximise their passengers spend on-board and control the onshore excursions and shopping as much as possible by only giving the local operators 20 per cent of the pre-booked tours and in some cases less. How do they accomplish this? They made the operators compete with each other, telling each one that the other will do it for less — this was along with pre-arrangements with some shop owners in and around the port areas. Cruise lines recommend their passengers to shop in those places so they can receive a “commission” or discounts from store owners. This is a regular practice by cruise lines making them the new pirates of the Caribbean and giving a new meaning to the word piracy. Oops, I meant to say privateers.
Please note, that 60 per cent of the entire revenue the cruise lines make comes from the Caribbean, and it is steadily increasing and growing at a very fast rate. This is expected to grow even more as some areas in North America and Europe that are concerned with over-tourism and the negative effect have limited the number of cruise ships that are allowed to visit. I think the responsible thing for any Government is to conference with the other governments in the Caribbean and not only share the bully tactics used by the cruise industry but also unite to find a common solution to ensure that the people of the Caribbean receive their fair share of the treasure.
I am more than happy to play my part, and I hope that this article starts the ball rolling. For too long they have been taking advantage of and exploiting our neighbours due to some of their economic challenges. I think it’s long overdue that all Caribbean islands come together, as one association, and create a Caribbean Cruise Alliance, taking back control of our tours and onshore shopping, whilst understanding the cruise lines need us far more than we need them. We must ensure a level and fair environment for all involved and not allow them to continue using us against each other to drive down prices for their benefit. I believe strongly that if we unite and call for a meeting to set new agreements and standards, not bending, we can accomplish this goal. I know it won’t be easy, and there will be a huge pushback from cruise lines with hollowed threats that will, at first glance, sound like it’s the end of the tourism industry, but let me reassure you, with 60 per cent and rising monies being made from the Caribbean, there would be no cruise line without the Caribbean. It’s time we start recognising the strength we possess and make sure all our islands maximise the benefits that come with it.
While Bob Marley’s famous Redemption Song started out with “Old pirates, yes, they rob I…”, he also went on to say, “Emancipate yourselves from mental slavery, none but ourselves can free our minds.”
Mario Rankin is a local activist and entrepreneur for a sustainable Cayman. He is also a founding and leading member of the Cruise Port Referendum (CPR), the group that led the charge in forcing a referendum so that the people of the Cayman Islands could vote whether or not a cruise port should be built. Send comments to the Jamaica Observer or mario.rankin@yahoo.com.