b'NEWSWIREPVA, Overnight Operators Seek Financial Relief from Federal Maritime CommissionThe operator of a vessel with overnight accommodationsMore specifically, Commissioner Sola proposed that a for 50 or more passengers that embarks them from a U.S.requested lower coverage amount should be favorably con-port must demonstrate evidence of financial responsibilitysidered when a PVO [passenger vessel operator] whose UPR to the Federal Maritime Commission (FMC).This can be ac- [unearned passenger revenue] at no time for the two imme-complished by means of a surety bond, escrow account, ordiately prior fiscal years has exceeded 150% of the required other methods.The purpose of the requirement is to ensurecap [$32 million] submits a request [to the Commission]. that a passenger who has paid in advance for a cruise can beOnly PVOs whose UPR at no time during the two immedi-reimbursed in the event of nonperformance of the bookedately prior fiscal years has exceeded 150% of the required cap voyage.A regulatory formula sets the level of financial re- may request alternative forms of financial responsibility , sponsibility that must be demonstrated, up to a maximumseeking a temporary surety/financial responsibility amount of $32 million. based upon 110% of the PVOs previous months UPR rather The coronavirus pandemic has caused most overnightthan the prior two fiscal years UPR.Approval of such cruise operators to shut down.Nevertheless, even thoughrequests shall be grantedprovided the PVO submits docu-they have no revenue coming in, they still must adhere tomentation satisfactorydemonstrating the PVOs UPR.; the Commissions rule, a mandate that can be costly. The PVO must ensure that the surety, insurance, guaran-Working with its members that operate small shipties, or escrow account held is sufficient to cover the 110% of overnight cruise vessels, the Passenger Vessel Associationexisting UPR.has urged the Commission to provide regulatory reliefThe Commission characterized the Sola recommenda-to these companies.In response, Commissioner Louistion as one that would provide a path for smaller carriers Sola has recommended to his colleagues that they allow ato request reducing the required surety amount to more ac-small passenger vessel operator to apply to obtain a lowercurately reflect the UPR held by these carriers.It notes that financial responsibility requirement, at least during thethe relief provided would be primarily realized by small period ending April 1, 2021.This recommendation must bepassenger vessel operators that are largely U.S.-based busi-acted upon by the full Commission. nesses that almost exclusively sail U.S. flagged vessels. n34JULY 2020FOGHORN'