News

Latest forecast finds 'big three' could have less than 50% of capacity back in service by year end

Details: Written by Teijo Niemelä Teijo Niemelä; Category: Top Headlines Top Headlines; Published: 08 July 2021 08 July 2021

A restart to full operations can’t come soon enough for cruise lines, whose financial position has become increasingly precarious given high debt levels incurred from fleet expansions and the fundraising required to survive the current crisis.

The latest cruise market report from Maritime Strategies International finds that net revenue losses for the ‘big three’ lines (Carnival, NCLH and RCI) in 2020 and Q1 21 almost match the accumulated net revenue gains of the preceding five-year period.

The scale of the problem facing the cruise lines – and the entire tourism sector – was laid out by the UN World Tourism Organisation (UNWTO) earlier this year when it pointed out that two-thirds of the world’s destinations were still either completely (32%) or partially (34%) closed to international tourists.

Last year’s collapse in international tourist arrivals (which fell 74% year on year) led to estimated tourism revenue losses of $1.3 trillion globally, with recovery back to 2019 levels not expected until 2023.

According to MSI’s calculations, the big three cruise groups should have approximately 45% of their capacity back in operation by the end of this year, equivalent to approximately 20% on an annual average basis. This forecast draws on data published by J.P. Morgan in early June which compiles start-up dates and deployment on a vessel-by-vessel basis for the three big cruise groups.

The shape of the recovery in international tourist arrivals projected by the UNWTO is largely consistent with MSI cruise passenger forecast. However MSI’s analysis is based on pre-pandemic lower berth capacity and as such does not factor any negative adjustments to berth capacity as a consequence of Covid-related social distancing requirements.

“Prospective US cruise passenger numbers will only top the 2020 total by 1 million and so be just a third of the record 2019 total of 15.4 million out of a global total of 30 million passengers,” says Niklas Carlen, Director, MSI. “It will be a similar story for the European sector which will see passenger numbers grow slightly this year for a total also about a third of the 2019 one. On lower base figures, Asia and Oceania will recover more quickly but it is likely that the global total will be just over a third of that achieved in 2019.”

The speed and scale of the resumption of international tourism will depend almost entirely on the decisions and policies of governments around the world. But, assuming the vaccination roll-outs continue to reduce the impact of the virus and are extended to more countries around the world, there is no reason why cruise recovery should not accelerate through 2022 so that 2019 levels are largely matched in 2023, MSI concludes.

Photo: Freedom of the Seas was the first Royal Caribbean International ship to sail from the U.S. port on July 2.

VARD to construct residential "yacht liner" Somnio

Details: Written by Teijo Niemelä Teijo Niemelä; Category: Top Headlines Top Headlines; Published: 28 June 2021 28 June 2021

VARD, one of the world’s major designers and shipbuilders of specialized vessels, has secured the contract for the construction of Somnio, the world’s first residential “yacht liner”, finished to the highest possible standards. "Somnio will be one of a kind and recognizable as the new standard bearer of superyacht design. The yacht liner will have a gross tonnage of 33,500 gross tons, a length of 222 meters, and a beam of 27 meters," VARD said in a statement.

Somnio has just 39 luxurious apartments onboard and will sail the world according to owners’ wishes.

The yacht liner, which will comply with the highest safety, environmental and operational standards and rules, is the result of a close cooperation among Somnio, Fincantieri and VARD.

Somnio has selected two of the world’s foremost architectural and design studios for the project, Tillberg Design of Sweden and Winch Design from the United Kingdom. Delivery is due in Norway in Spring 2024.

Captain Erik Bredhe, co-founder of Somnio, said: “We are delighted to have chosen the highly- experienced team at VARD for this unique project. Somnio, meaning “to dream” in Latin, will be the largest yacht in the world by length and volume, and offer apartment owners the finest quality available at sea. We are really looking forward to seeing this beautiful yacht liner sail in 2024.”

General Manager for Business Unit Cruise in VARD, Attilio Dapelo says: “We are proud of having been selected to build this amazing yacht liner for Somnio. The vessel will be the largest vessel so far in VARD’s history and will engage a high number of designers and shipbuilders in VARD’s network of specialized international facilities.”

Newbuilding General Manager for Business Unit Cruise in Fincantieri, Daniele Fanara says: “Once again Fincantieri group, offering to owners the expertise achieved with the development of the widest and most diversified portfolio of maritime products worldwide, is the first to develop groundbreaking designs for new market segments and niches. Our teams have strictly cooperated with Somnio and with their architects. The result is really outstanding and will set the standard for a new niche of top luxury vacations.”

The yacht liner is to be delivered from Vard Søviknes in Norway. The hull, and the first phase of outfitting, will be performed at Vard Tulcea in Romania. Other key players in the project are VARD’s parent company Fincantieri, Vard Design, and Vard Electro. A broad range of suppliers and contractors in the Norwegian Maritime Cluster will also be involved in the project.

Senior Vice President Sales and Marketing in VARD, Rune Rødset commented: “During my 37 years in VARD, I have had many dreams. However, the satisfaction of bringing home the contract of Somnio, clearly exceeds all of what I was hoping for.”

Crystal Expedition Cruises christens Crystal Endeavor

Details: Written by Teijo Niemelä Teijo Niemelä; Category: Top Headlines Top Headlines; Published: 27 June 2021 27 June 2021

On June 26, Crystal Expedition Cruises officially welcomed its new 20,200 gross ton luxury expedition yacht Crystal Endeavor to the Crystal fleet as the ship was christened by Godmother Manuela Schwesig, Prime Minister of Mecklenburg-Western Pomerania in Stralsund, Germany. Marking the occasion were executives from Genting Hong Kong (GHK) including Group President Colin Au; Crystal’s senior vice president, hotel operations, Bernie Leypold; the yacht’s master, Captain Jan Rautawaara; and MV Werften’s president & CEO, Peter Fetten. Also, joining the milestone event was Germany’s Federal Minister for Economic Affairs & Energy, Peter Altmaier, and Harry Glawe, Deputy Prime Minister of Mecklenburg-Western Pomerania and Minister for Economic Affairs, Labour and Health.

Almost 100 people attended the ceremony that took place on the helipad of the ship, which is docked at MV Werften in Stralsund, the shipyard that designed and built the vessel. Master of Ceremonies Keith Cox, Crystal’s vice president of entertainment, hosted the event which began with the playing of the German national anthem as Crystal crew members looked on from the upper deck of the ship. After a series of remarks and a musical performance by German Soloist Carina Smerdon Kärcher, Prime Minister Schwesig christened the ship. The event was livestreamed on the Crystal Cruises Facebook page so that members of the Crystal Family around the world could celebrate the occasion.

“Today is a landmark day as we christen Crystal Endeavor, the first and only Polar Class Six (PC6) expedition yacht to be ‘Made in Germany,’ and a testament to Crystal’s award-winning design and MV Werften's superb German engineering with system redundancies, including 100 percent additional lifeboat capacity, to handle extreme polar conditions,” said Tan Sri KT Lim, the Chairman of GHK. “She combines the finest attributes of the award-winning Crystal Experience with unmatched technical capabilities including the most installed power per gross ton for any cruise ship at over 13 MW. The most luxurious and expensive ship ever built at $20,000 per gross tons, she sets a new high standard in luxury cruising including the largest space ratio, at over 100 gross tons per guest, and most importantly, the highest staff to guest ratio in the industry at one-to-one. We are delighted that Crystal Endeavor, as the new pinnacle of expedition excellence, now commands the highest cruise fare per night of any cruise ship in the world.”

Crystal’s Senior Vice President of Hotel Operations Bernie Leypold thanked the line’s travel partners and guests around the world for their support and loyalty and the Crystal Family, both onboard and shoreside for their devotion and service excellence to make the Crystal Experience so personal and so unparalleled. “We have the best officers and crew in the world,” Leypold said. “They are the reason travelers feel like family each time they embark, as they embody the spirit of Crystal at its very best.

“Crystal Endeavor is nothing short of superb in her design and technical features. Her details — great and small — add up to an unparalleled experience that has made Crystal’s brand stand out for more than 30 years offering travelers every convenience and indulgence they would expect from Crystal, as they venture to some of the world’s most remote and rugged places,” he continued.

Godmother Manuela Schwesig, Prime Minister of Mecklenburg-Western Pomerania, the region where Crystal Endeavor was built, expressed her best wishes for the ship, captain and crew as she christened the ship, and offered her congratulations to the team at MV WERFTEN.

“Crystal Endeavor’s naming ceremony is a sign of Germany’s relaunch as a shipbuilding location and I am honored to be named Godmother, and proud for our region and country to play an important role in the story of this unique ship,” Prime Minister Schwesig said. “Our shipyards are innovative high performers, with highly motivated experts and know-how acquired over decades. The employees at MV Werften have successfully driven the transformation process from containership production via special-purpose shipbuilding to cruise ship construction in the last few years, demonstrating that even under difficult circumstances they can achieve top performances.”

“Today is a special moment of joy for all those who have contributed with great commitment to the creation of Crystal Endeavor,” said Peter Altmaier, Federal Minister for Economic Affairs & Energy. “She exemplifies the level of shipbuilding expertise and broad maritime know-how we have in Germany and want to retain even in the difficult times caused by the pandemic.”

At the beginning of June, the Federal Government agreed with the State of Mecklenburg-Western Pomerania to continue to support the shipyard with finance from the economic stabilization fund, Altmaier explained. “We want to further strengthen the competencies of high-quality shipbuilding and make shipping more climate friendly. The Federal Government is thus providing many hundreds of millions of euros for developing innovative solutions in shipbuilding. We wish Crystal Endeavor always a hand’s breadth of water under the keel.”

“We have shown that even under the most challenging conditions we in Stralsund can build ships of the greatest complexity that meet the highest standards,” said Peter Fetten, president & CEO of MV Werften. “Crystal Endeavor is a unique vessel that will represent the art of German shipbuilding throughout the world. We would also like to take this special occasion to express our thanks to the federal government and state government for their commitment and support.”

Harry Glawe, Deputy Prime Minister of Mecklenburg-Western Pomerania and Minister for Economic Affairs, Labour and Health also offered best wishes and praise, “A jewel has been created that widens the portfolio of MV Werften in a special way and another milestone ‘Made in Germany’ can now take to the sea. That is a positive signal MV Werften is sending during the pandemic, that new ships are being completed even in globally adverse times for shipbuilding.”

Inaugural voyages, Iceland, the Arctic Circle and Europe

As the first and only true luxury expedition yacht to restart cruising in the Arctic and Northern Europe, Crystal Endeavor will set sail beginning July 17 with five 10-night immersive voyages circumnavigating Iceland’s most dramatically beautiful and fascinating locales. The Luxury Iceland Expedition voyages will sail round-trip from the ship’s homeport of Reykjavík, affording travelers convenient air options, just six hours from New York City, three hours from London and with frequent non-stop flights from many major cities in the U.S. and Europe and will be followed by the 10-night Journey of Vikings: Iceland & Norway from Reykjavík to Tromsø departing September 5, 2021.