News

Carnival group’s interims weaken as cost rises outpaces revenue growth

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 20 June 2019 20 June 2019

Carnival Corporation & plc, the world’s largest cruise shipping group, has reported a fall in both second quarter and first half net profit due to higher fuel costs and adverse foreign exchange movements, which more than offset higher revenues.

Group net profit fell to $451 million in three months to 31 May from $564 million in the same period last year. Operating profit fell to $515 million from $559 million, but revenues increased to $4.84 billion from $4.36 billion, boosted by a bigger fleet.

In the first six months of the group’s financial year, net oprofit contracted to $797 million from $955 million, while operating profit shrunk to $902 million from $978 million. Revenues grew to $9.51 billion from $8.59 billion.

The group’s fuel bills increased to $423 million in the second quarter from $373 million year on and to $804 million from $731 million in the first six months of its financial year compared to the same period a year earlier. “Changes in fuel prices and currency exchange rates decreased earnings by $0.09 per share,” the company said.

President and Chief Executive Officer Arnold Donald said in a statement: "Second quarter earnings included revenue growth from higher capacity and improved onboard spending, more than offset by a drag from fuel and currency compared to the prior year. Second quarter adjusted earnings were better than March guidance by $0.08 per share substantially due to the timing of expenses between quarters."

Gross revenue yields (revenue per available lower berth day or "ALBD") increased 5.6%. In constant currency, net revenue yields increased 0.6%, better than March guidance of approximately flat.

Gross cruise costs including fuel per ALBD increased 9.6%. In constant currency, net cruise costs excluding fuel per ALBD decreased 1.3%, better than March guidance of up approximately 1.0%, substantially due to the timing of expenses between quarters.

Knud E. Hansen unveils adventure sail ship concept

Details: Written by Teijo Niemelä Teijo Niemelä; Category: Top Headlines Top Headlines; Published: 19 June 2019 19 June 2019

Knud E. Hansen has announced its latest design, a 110‐metre "Wind Cruise Vessel." This is a sail‐assisted cruise vessel that can accommodate up to 100 passengers and has a range of 6000 nautical miles. This design is aimed at the adventure‐cruise market and will appeal to passengers who prefer a more intimate cruise experience while visiting destinations that are inaccessible by larger ships.

By leveraging its vast experience in the design of small to medium sized expedition cruise vessels, Knud E. Hansen has produced a design that addresses a number of growing trends in the cruise industry. The higher end of the market prefers smaller ships where passengers can escape the crowds typically found on the large cruise lines. Furthermore, the modest length and shallow draft of this vessel allow it to anchor in small harbors, away from the throngs of tourists found in busier ports.

The design also appeals to the growing eco‐tourism segment that aims to travel the world while minimizing their carbon footprint. The combination of low‐sulphur diesel and wind power result in a vessel that exceeds the requirements for Emission Control Areas and all forthcoming IMO regulations. The vessel also includes a large battery bank to allow for zero emissions in port as well as specially protected areas.

The vessel features a modern rig designed by Detlev Loell Ingenieurbüro, GmbH. The rig is comprised of three free‐standing masts, each with a fully‐battened main sail with adjustable trailing‐edge flaps for optimizing lift. The total sail area, which includes a single head sail on the forward mast, is 1910 square metres. The sails are computer‐operated and are designed to provide peak performance, even in light winds.

The formidable rig design, combined with four diesel‐electric engines, will allow the vessel to cruise at 15 knots in most operating conditions. The twin‐screw arrangement and pair of tunnel thrusters forward allow for superior maneuverability in small ports and anchorages. Active fin stabilizers limit the vessel’s heel to 6 degrees in sail‐assisted mode, in order to ensure passenger comfort in typical operating conditions.

The accommodation decks include 46 passenger cabins and 2 deluxe cabins. All of the cabins are located outboard with ocean views, and many have private balconies. Located in the hull is a Sea Lounge with underwater windows for viewing marine life. On the second deck is a large tender garage with a capacity for multiple rigid inflatables, jet skis, diving gear and other recreational equipment, as well as ROV camera equipment for observation of underwater environments at a maximum depth of 3000 m. All can be launched via shell doors on either side.

The third deck features a sun deck astern with a swim platform for easy water access. Deck 4 includes a large restaurant with al fresco dining as well as a bar, library, and card room. Deck 5 includes a large bar/lounge aft surrounded by exterior deck space plus an observation area on the foredeck. The top deck features an open‐deck café and sun deck with lounge chairs.

This design has been developed in‐house, by the experienced staff of naval architects, marine engineers and designers at Knud E. Hansen as well as the sail experts at the Detlev Loell Ingenieurbüro.

Panama Canal issues proposal to modify tolls structure

Details: Written by Teijo Niemelä Teijo Niemelä; Category: Top Headlines Top Headlines; Published: 14 June 2019 14 June 2019

The Panama Canal published today a proposal to modify its current tolls structure for the dry bulk, passenger, containership and vehicle carrier and RoRo segments, as well as tankers, chemical tankers, LPG and LNG vessels, the intra-maritime cluster (local tourism segment) and minimum tolls (small vessels). Today’s announcement marks the beginning of a 30-day formal consultation period for industry feedback, which will close on July 15, 2019.

"With this proposal, we aim to better serve the global maritime industry," said Panama Canal Administrator Jorge L. Quijano. “Our proposed modifications will increase transparency and flexibility, among other improvements, to ensure the Panama Canal remains competitive and optimal for the industry today and moving forward.”

For the dry bulk segment, the proposal offers matching the tolls charged to Neopanamax vessels carrying iron ore with the tolls assessed for grains and “other dry bulk” cargoes, as well as a tariff increase for Neopanamax dry bulkers transiting in ballast.

The proposal also aims to add transparency to the tolls structure of the passenger segment by charging based on the maximum passenger capacity that can be carried by each specific passenger vessel. To that end, the Canal is proposing to change the unit of measurement from a “per berth” to a “per passenger” basis, making it easier for cruise lines to transfer transit costs to their customers.

For the containership segment – the main user of Neopanamax Locks – the proposed toll modifications will help retain and incentivize increased cargo volumes through the Panama Canal. Specifically, the proposal offers more attractive rates for customers who benefit from the Panama Canal Loyalty Program by adding new levels with reduced rates in the capacity charge for shipping lines deploying between 2 million to 3 million TEUs, and additional reductions for lines deploying an incremental over 3 million TEUs. The incentive implemented in the last toll modification of fiscal year 2018 for total TEU loaded in the return voyage (TTLR) will remain in effect.

To add further transparency to the toll structure for the Vehicle Carrier and RoRo segment, the proposed modifications include – for the first time--a new tariff category or range precisely designed for Neopanamax vessels to account vessels sizes and capacity. Additional modifications for this segment include slight increments in tolls tariffs for Panamax-sized vessels, as well as minor adjustments based on vessel size ranges.

Toll structures for tankers, chemical tankers, LPG and LNG vessels remain unchanged, but tolls adjustments are proposed to more closely align with the value of the route.

Tolls for small vessels (minimum tolls) and for the local tourism market are being revised upwards to take into account the resources used in the transit and the complexity of accommodating these vessels within the locks’ chambers. The last tariff adjustments for small vessels were implemented in 2012.

Lastly--and based on comments submitted by clients during the 2017 public consultation and hearing process--the Canal proposes to review the rates charged to vessels carrying containers on deck, which do not belong to the container shipping segment, to allow for differentiated charges for containers that are empty, dry or refrigerated.

The complete proposal is available at www.pancanal.com/peajes. All interested parties are invited to participate in the consultation process as well as the public hearing to be held in Panama City, Panama, on July 24, 2019 at 9:00 a.m. (local time). In accordance with established rules, the Panama Canal will consider all correspondence received by 4:15 p.m. (local time) on July 15, 2019, as well as comments and opinions presented during the public hearing.

After a careful evaluation and analysis of the comments received, and once any pertinent changes are incorporated in the proposal, the Cabinet Council of the Republic of Panama will officially approve the modifications. The date for implementation of the modifications to the tolls structure is planned for January 1, 2020.