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Cruise ship building boom drives Finnish export credits higher

Details: Written by Kari Reinikainen Kari Reinikainen; Category: More News More News; Published: 03 February 2020 03 February 2020

A boom in the cruise ship building industry that is providing lots of work to the shipbuilding cluster in Finland is driving the demand for export credit, according to the country’s export credit agency Finnvera.

The Finnish parliament raised Finnvera’a authorisation to issue export credit guarantees to €38 billion last year from a previous ceiling of €27 billion and export credits to €33 billion from €22 billion.

“The fact that our authorisation to grant export credit guarantees was raised to €38 billion was a very significant development. This figure is extremely high, and it results from the exceptional wave of investments in cruise shipping. The order book extends a long way into the future, and to ensure the completion of these orders together with Finnish shipyards and to serve also other sectors and SMEs at the same time, we need these authorisations,” Finnvera’s CEO Pauli Heikkilä said in a statement.

The wave of investments in cruise shipping could be seen in Finnvera’s export financing In 2019, export financing increased year on year, and Finnvera granted the following financing for large corporates’ export transactions: €5.2 billion (up from €3.0 billion in the previous year) in export credit guarantees and special guarantees and €2.5 billion (€2.2 billion) in export credits.

“The realisation and timing of individual major export transactions have an impact on the amount of financing granted. As a result, the annual variation is typically large. As in the previous years, financing focused especially on cruise shipping, telecommunications, and pulp and paper, and demand for new export credit guarantees and export credits remained high,” Finnvera said.

Demand for buyer credit guarantees reflects the structure of Finnish exports and the fact that the financing of capital goods exports requires long payment periods and long-term credits to the export company’s foreign buyer. The international wave of investments in cruise shipping could be seen in projects guaranteed by Finnvera.

In December 2019, Finnvera signed one of the largest financing agreements in its history, more than EUR 1.2 billion, with Royal Caribbean Cruises. The agreement is associated with a cruise ship to be delivered in 2025.

Finnvera’s exposure related to export credit guarantees and special guarantees granted to large corporates for export transactions was €25.2 billion at the end of 2019 (€23.3 billion). Drawn guarantees accounted for approximately €11.1 billion (€10.0 billion) of the exposure.

“In other words, more than half of the exposure was related to binding financing offers or agreements that are related to future deliveries by export companies, and thus they do not yet create any credit risks for Finnvera,” the organisation concluded.

MSC Splendida itineraries changed due to coronavirus

Details: Written by Kari Reinikainen Kari Reinikainen; Category: More News More News; Published: 31 January 2020 31 January 2020

MSC Splendida, deployed in Asia for winter 2019/20, has canceled its next three four and five-night scheduled sailings from Shanghai in China and will reposition to Singapore to start its 27-night ‘Grand Voyage’ to the Middle East and Europe for a February 14 departure, the company said in a satement.

The itinerary changes are a result of the coronavirus health situation in China although there have been no reported cases among passengers or crew on board MSC Splendida while she has served the Asia market throughout the winter.

Gianni Onorato, CEO, MSC Cruises, said: “The decision to reposition the ship from Shanghai to Singapore has been taken in the best interests of the safety and wellbeing for our passengers and crew, as was the decision to cancel our next three scheduled sailings from China.

“Many major airlines have either canceled or reduced their flight frequency to China and the Grand Voyage, a maritime tradition whereby a ship moves from one part of the world to another for a new sailing season, was entirely booked with guests flying from abroad to enjoy the experience of a unique itinerary.

“In light of Singapore becoming a new embarkation port we have had to cancel calls to Naha, Japan and Hong Kong but it has also created an opportunity to update and enrich the Grand Voyage’s itinerary with four additional new ports; Langkawi, Penang and Kuala Lumpur in Malaysia, plus Ho Chi Minh City in Vietnam to create a new, one-of-a kind memorable cruise.”

Customers who booked an outbound flight ticket to Asia will need to contact their airline or travel agent for a refund or possible re-protection to Singapore.

MSC Splendida will dock in Singapore on Thursday February 13 and guests can board the ship starting at 6:00 p.m. Singapore time and onwards. The ship will depart from Singapore on Friday February 14 at 11:00 p.m. Singapore time.

Fincantieri delivers Seven Seas Splendor

Details: Written by Kari Reinikainen Kari Reinikainen; Category: More News More News; Published: 31 January 2020 31 January 2020

Seven Seas Splendor, the second ultra-luxury cruise ship which Fincantieri built for Regent Seven Seas Cruises, brand of the Norwegian Cruise Line Holdings Ltd (NCLH), was delivered on 30 January at the Ancona shipyard.

The ship owner already ordered Fincantieri a third unit of the series, which will be delivered in 2023.

The ceremony was attended, among others, by Jason Montague, President & CEO of Regent Seven Seas Cruises, and by Luigi Matarazzo, General Manager of the Fincantieri Merchant Ships Division, the shipbuilder said in a statement.

Like her sister ship Seven Seas Explorer, delivered by Fincantieri at the Sestri Ponente (Genova) shipyard in 2016, Seven Seas Splendor is 55,000 gross tons, 224 meters long and is able to accommodate 750 passengers on board in 375 spacious suites all including private balconies.

CMV names latest acquisitions

Details: Written by Kari Reinikainen Kari Reinikainen; Category: More News More News; Published: 29 January 2020 29 January 2020

Cruise & Maritime Voyages (CMV) the UK based destination focused cruise line, has chosen the names for the two ships it has acquired from P&O Cruises Australia.

The present day Pacific Dawn, which will be operated on the UK market from the spring of 2021, will be called Amy Johnson to honour an aviator.

“Amy Johnson (1903-1941) was a pioneering English pilot who was the first woman to fly solo from London to Australia. In 1931, aged just 27, Johnson set off from Croydon, Surrey to Darwin, Northern Territory,” the company said in a statement.

She went on to set many records including; the first woman to fly from London to Moscow in one day, setting record flying times from Britain to Japan and Cape Town and was awarded the Gold Medal of the Royal Aero Club. During WWII, Johnson joined the Air Transport Auxiliary (ATA), CMV continued.

Pacific Aria , which will sail under the TransOcean Kreuzfahrten brand on the German market, will be renamed, Ida Pfeiffer.

“Ida Pfeiffer (1797-1858) was an Austrian explorer, travel writer, and ethnographer. Aged 45, Pfeiffer set off on her own to the Holy Land with the aim of completing a pilgrimage. Future trips were funded through her writings. She set off on ‘A Lady’s Voyage Round the World’ in 1846 travelling to South America, China, the South Sea Islands, India, Persia, Russia, Turkey, Greece and Italy. The first journey, and its book, was such a success Pfeiffer undertook ‘A Lady’s Second Journey Round the World’ in 1851 returning in 1855,” CMV said.

Edge class ship could be based in UK – report

Details: Written by Kari Reinikainen Kari Reinikainen; Category: More News More News; Published: 29 January 2020 29 January 2020

Celebrity Cruises, the premium market unit in the Royal Caribbean Cruises Ltd (RCCL) group, could base a ship of its new Edge class in Southampton in the UK in the future, the line’s CEO was reported as saying

“We will see about an Edge [ship] in Southampton. It is a combination of how strong the UK market is – would we get the per diems that we need for the ship and how that itinerary is performing with other guests from around the world. We source from everywhere,” Lisa Lutoff-Perlo, CEO of Celebrity Cruises, was quote by Travel Weekly as saying..

“Could we have a longer season? Sure. Could we have a full season? Maybe. It really depends on how we build the brand, the business, the average per diems, the luxury travel market between now and when we consider [deployment] again,” the report cited her.

Celebrity Apex, the second unit of the new class of ships, will be named in Southampton in March. The company operates Celebrity Sihouette, a Solstice class ship, from the UK port from spring to late autumn.