News

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.