Vice President Mike Pence reportedly overrules CDC guidelines on cruises, no-sail order

CNBC's Seema Mody joins 'Closing Bell' to talk about the cruise industry. Vice President Mike Pence reportedly overruled the CDC's no-sail orders to extend over to the beginning of next year. For access to live and exclusive video from CNBC subscribe to CNBC PRO: https://cnb.cx/2NGeIvi

The Centers for Disease Control and Prevention on Wednesday extended its ban on passenger cruising from U.S. ports through Oct. 31 after the White House reportedly overruled calls for a further suspension.

The CDC originally issued a no-sail order for cruise ships in U.S. waters on March 14 after hundreds of coronavirus infections and several Covid-19 deaths were reported onboard ships with outbreaks across the world. The CDC previously said “that cruise ship travel exacerbates the global spread of Covid-19” in justifying the order.

Between March 1 and Sep. 29, at least 3,689 probable cases of Covid-19 were reported on cruise ships in U.S. waters, the CDC said in a statement late Wednesday, adding that at least 41 Covid-19 deaths have occurred on cruise ships. The agency added that “these numbers are likely incomplete and an underestimate.”

“Recent outbreaks on cruise ships overseas provide current evidence that cruise ship travel continues to transmit and amplify the spread of SARS-CoV-2, the virus that causes COVID-19,—even when ships sail at reduced passenger capacities—and would likely spread the infection into U.S. communities if passenger operations were to resume prematurely in the United States,” the CDC said in announcing the extension.

CDC Director Dr. Robert Redfield pushed to extend the order until February 2021, according to Axios, which cited two people familiar with the matter. Axios reported that Vice President Mike Pence overruled Redfield and that the plan is to extend the ban until Oct. 31, which coincides with a voluntary suspension announced by the trade group the Cruise Lines International Association.

Executives of the cruise companies and CLIA are planning a meeting at the White House on Friday, CNBC’s Seema Mody reported.

The pandemic has hammered shares of the three major publicly traded cruise companies, Royal Caribbean, Carnival Corp and Norwegian Cruise Line. Shares of the three companies are down at least 50% from Jan. 1. However, all three have outpaced broader market gains since hitting their lows in mid-March. Shares of Norwegian are down nearly 70% since Jan. 1, but have clawed back some gains since hitting a 52-week low on March 18. The stock is up more than 100% since then.

The industry has been fine-tuning a public health proposal to resume sailing. Royal and Norwegian have convened a panel of former U.S. health officials and top infectious disease specialists to propose a plan for ensuring safety on cruise ships. Last week, the panel submitted their 60-plus-page report of recommendations to the CDC. It includes proposals for companies to conduct entry testing for all passengers and crew, daily temperature checks, mask recommendations and more.

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