Top Headlines

Tasman government cancels agreement for two ropaxes with Finland’s RMC

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 21 July 2020 21 July 2020

Government of the Australian state of Tasmania has cancelled a plan to build two 55,000 gross ton ropaxes for TT-Line Company at the Rauma Marine Constructions shipyard in Finland and is now looking to build the vessels at home .

State premier Peter Gutwein was quoted by the Australian Broadcasting Company (ABC) as saying: "On one hand we have a decision whereby we could see more than AUD850 million invested in a European country, supporting European jobs, providing what would without doubt be an excellent product."

"However on the other hand we had the opportunity to explore how much of that investment could occur within the state or within our country."

A taskforce, which will be headed up by Treasury with members from State Growth, TT-Line and the Federal Government, will spend the next three to six months looking into Australian options, the report said.

The ferries had originally been contracted with the Flensburger shipyard in Germany, but the builder’s financial problems led the Australian company to sign a letter of intent for their construction at RMC earlier this year.

RMC said in a statement that it would be happy to re-enter talks with TT-Line Company should the building of the vessels in Finland become an option in the future. The yard has two ropax ferries and four 3,900 tonne displacement naval vessels in its orderbook at the moment.

Australian yards have no previous experience of building passenger vessels of this size. However, the country has a major naval ship building programme in progress and although the vessels are mainly built to Spanish, French and British designs, most of the work is carried out in Australia.

Cruise & Maritime Voyages enters administration

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 20 July 2020 20 July 2020

Cruise & Maritime Voyages, the UK based destination focused cruise line, said it has entered administration after failing to secure funding to carry it over the Covid-19 crisis.

“We are sorry to inform you that South Quay Travel Limited (“SQTL”) – which traded under the name Cruise & Maritime Voyages – was placed into administration on 20 July 2020. Paul Williams, Phil Dakin and Edward Bines of Duff & Phelps Ltd. were appointed Joint Administrators of SQTL. At present the Administrators are evaluating SQTL’s financial position,” the company said I a statement posted on its website.

The company started business in 2009 and it has operated its fleet of ships on charter from a Greek company.

At the time of its collapse, its fleet comprised of the following vessels:

Columbus, built in 1989, 63,786 gross tons

Vasco da Gama, 1992, 55,819 gross tons

Magellan, 1985, 46,052 gross tons

Marco Polo, 1965, 22,080 gross tons

Astor, 1987, 20,606 gross tons

Astoria1948, 16,844 gross tons

It was due to introduce next year two additional ships:

Amy Johnson, currently Pacific Dawn, 1991, 70,285 gross tons

Ida Pfeiffer, currently Pacific Aria, 1994, 55,819 gross tons

In addition to the UK market, the company operated in Germany, where it used the Transocean Kreuzfahrten brand, plus in Australia, Mexico and the US.

CDC extends No Sail Order through September 2020

Details: Written by Teijo Niemelä Teijo Niemelä; Category: Top Headlines Top Headlines; Published: 17 July 2020 17 July 2020

The Centers for Disease Control and Prevention (CDC) announced today the extension of a No Sail Order for cruise ships through September 30, 2020. This order continues to suspend passenger operations on cruise ships with the capacity to carry at least 250 passengers in waters subject to U.S. jurisdiction.

CDC supports the June 19th decision by the Cruise Lines International Association (CLIA to extend voluntarily the suspension of operations for passenger cruise ship travel until September 15, 2020. In line with CLIA’s announcement of voluntary suspension of operation by its member companies, CDC has extended its No Sail Order to ensure that passenger operations on cruise ships do not resume prematurely.

Cumulative CDC data from March 1 through July 10, 2020, shows 2,973 COVID-19 or COVID-like illness cases on cruise ships, in addition to 34 deaths. These cases were part of 99 outbreaks on 123 different cruise ships. During this time frame, 80 percent of ships were affected by COVID-19. As of July 3, nine of the 49 ships under the No Sail Order have ongoing or resolving outbreaks. According to U.S. Coast Guard data, as of July 10, 2020, there are 67 ships with 14,702 crew onboard.

This Order will remain in effect until the earliest of:

– The expiration of the Secretary of Health and Human Services’ declaration that COVID-19 constitutes a public health emergency,
– The CDC Director rescinds or modifies the order based on specific public health or other considerations, or September 30, 2020.

On cruise ships, passengers and crew share spaces that are more crowded than most urban settings. Even when only essential crew are on board, ongoing spread of COVID-19 still occurs. If unrestricted cruise ship passenger operations were permitted to resume, passengers and crew on board would be at increased risk of COVID-19 infection and those that work or travel on cruise ships would place substantial unnecessary risk on healthcare workers, port personnel and federal partners (i.e., Customs and Border Protection and the U.S. Coast Guard), and the communities they return to.

Celestyal Cruises acquires Costa NeoRomantica

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 16 July 2020 16 July 2020

Celestyal Cruises, the Cyprus based cruise operator, said it has acquired the 1993 built Costa NeoRomantica from Costa Crociere, the Italian unit in the carnival Corporation & plc group.

The ship that was extensively refitted in 2012 can accommodate 1,800 passengers in 789 cabins, of which 132 have private balconies.

Itineraries of the ship would be published later, the company said in a statement.

The sale is part of Carnival group’s disposal programme that will comprise 13 ships. Earlier today, two Holland America Line ships were reported as sold to Fred. Olsen Cruise Lines.

Fred. Olsen owner acquires two Holland America ships

Details: Written by Teijo Niemelä Teijo Niemelä; Category: Top Headlines Top Headlines; Published: 15 July 2020 15 July 2020

Wholly owned subsidiaries of Bonheur ASA have today entered into agreements with HAL Nederland NV (part of the Carnival Corporation Group) for the acquisition of two cruise vessels to be operated by Fred. Olsen Cruise Lines Ltd., UK, which is also a wholly owned subsidiary of Bonheur.

The vessels, which will be renamed Bolette and Borealis, were built in 2000 and 1997 and measures 62,735 gross tons and 61,849, respectively. They each have a capacity of approx. 1,400 available lower berths. This acquisition forms part of an optimization of the Fred. Olsen Cruise Lines’ fleet composition and with a high yielding cabin mix and large public spaces, these vessels will enhance Fred. Olsen Cruise Lines’ earnings capabilities once operations can safely resume. Delivery is expected to take place in the UK during September 2020.

Considering divestment of two vessels within the current fleet, such optimization of Fred. Olsen Cruise Lines’ fleet composition will imply Bonheur itself contributing approx. GBP 7 million in financing to Fred. Olsen Cruise Lines. The remaining financing requirements, which shall also cover any re-branding costs, layup costs and pre-operating costs will i.a. be covered by a seller credit of GBP 22.3 million and operating cash flow in relation to the restart of cruise operations.

The seller credit will have a 5 years tenor with 3 years of zero amortization and subsequent annual instalments of GBP 7.43 million at a 2.5% fixed interest cost, an interest rate which reflects the negotiated parameters of the transaction.

As to when to resume cruise operations, Fred. Olsen Cruise Lines will continue to take advice and follow guidelines from relevant authorities, including the UK Government and Public Health England as well as overseas policies. A decision on safely resuming cruising will correspondingly be taken in close harmonization with such institutions.

By optimizing its fleet and operations, Fred. Olsen Cruise Lines is positioning itself to emerge from the current cruise pause in a stronger and more resilient position.