Why Cruise Ships Sail Under Foreign Flags

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.
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[@markstonham3395]

They don't pay tax and choose countries with low or no minimum wage.

[@jasonlee8156]

Absolutely. Which is why when you go on these ships you will see the majority of people working on these boats are mainly foriegners from 3rd world nations like Indonesia, Philippines, Thailand etc. They will work on these ships for less than the American minimum wage. The only exception might be the captain/his crew, instructors that do yoga, line dancing, aerobics etc. entertainers and the administrative staff.

[@TheSubHunter1]

You missed out the Jones act requirement for being American built and american owned
Also missed that once passed the 12nm limit the law of the flag state is the law followed on the ship