The Delaware River Port Authority voted Wednesday to end its operation of the terminal, citing declining demand.
Officials of the bistate agency say the move will save $18 million in future renovation costs and produce immediate savings of $627,000 in operating expenses.
The number of ships departing from the terminal at Philadelphia's Navy Yard has declined from a high of 36 in 2006.
Only two cruises are scheduled for 2011. Officials say those departures will still be honored.