Major cruise lines enter into new NYC port usage agreements

   September 30, 2023 ,   Cruise Industry

NCL-Norwegian Cruise Line, MSC Cruises, and all Carnival Corporation's subsidiaries/brands have recently entered into updated usage agreements with the New York City Economic Development Corporation (NYCEDC), emphasizing emission reductions, educational partnerships, and investments within the city.

These major cruise companies/shipowners, operating from Manhattan and Brooklyn cruise terminals, have forged several new agreements with the NYCEDC aimed at contributing to the local community through financial support, emission reduction efforts, and participation in local events.

The NYCEDC, a nonprofit organization dedicated to fostering a globally competitive economy within the city, anticipates a record-breaking number of over 1.3 million passengers passing through the Manhattan and Brooklyn cruise terminals this year.

The NYCEDC estimates that the cruise industry injects approximately US$420 million annually into the city's economy, with spending from cruise passengers and crew members supporting around 2,667 jobs. Of these, approximately 2,000 jobs are associated with industries related to tourism, including hotels, food and beverage, shopping, transportation, and entertainment.

The agreements include cruise lines contributing US$1 per passenger to establish a new fund that will address community needs in neighborhoods directly surrounding the cruise terminals, particularly Red Hook, Brooklyn, and midtown Manhattan. Additionally, NYCEDC will collaborate with cruise lines on ground transportation planning. Cruise lines have committed to reducing emissions and working toward equipping all ships calling in New York with shore power connections by 2028.

Another agreement focuses on developing a local plan to enhance outreach to Minority Women-Owned Business Enterprises (MWBEs). Lastly, cruise lines are required to establish relationships with educational institutions in New York and participate in at least one career fair and one networking event annually.

These updated usage agreements replace the existing agreements with each respective cruise line. The duration of each usage agreement ranges from three to 15 years, with options for five-year renewals. Cruise lines are obligated under the agreement to submit annual progress reports to the NYCEDC.