CDC Drops No Sail Order For Framework For Conditional Sailing Order

Centres for Disease Control and Prevention (CDC)

The U.S. Centers for Disease Control and Prevention (CDC) has dropped its controversial "No Sail" order in favour of a so-called Conditional Sailing Order.

In short, the "No Sail" order has been lifted and the industry will work with the CDC on a realistic, phased-in return to service.

"The initial phases will consist of testing and additional safeguards for crew members," the CDC said in a statement posted to its website.

"CDC will ensure cruise ship operators have adequate health and safety protections for the crew while these cruise ship operators build the laboratory capacity needed to test future passengers. Subsequent phases will include simulated voyages to test cruise ship operators’ ability to mitigate COVID-19 risk, certification for ships that meet specific requirements, and a phased return to cruise ship passenger voyages in a manner that mitigates COVID-19 risk among passengers, crew members, and U.S. communities.

"These phases are subject to change based on public health considerations and cruise ship operators’ demonstrated ability to mitigate COVID19 risk. CDC will issue additional orders as needed that will be published in the Federal Register and technical instructions that will be subsequently posted on CDC’s website."

The framework allows for individual cruise lines to progress through phases at variable paces, according to the agency, and enables cruise lines successfully implementing public health measures to return to passenger operations more quickly while others by necessity may move more slowly.

The framework not only encourages cruise lines that are more successful at mitigating the spread of COVID-19 but provides a realistic timeline that anticipates COVID-19 continuing to be present and affecting cruise ship travel, the CDC said.

The phased-in approach will include (1) establishment of laboratory testing of the crew onboard cruise ships in U.S. waters; (2) 15 simulated voyages designed to test a cruise ship operators’ ability to mitigate COVID-19 on cruise ships; (3) a certification process; and (4) a return to passenger voyages in a manner that mitigates the risk of COVID-19 introduction, transmission, or spread among passengers and crew onboard ships and ashore to communities.

These phases will be further determined based on public health considerations including the trajectory of COVID-19 transmission and the demonstrated ability of cruise ship operators to successfully employ measures that mitigate the risk of COVID-19.

As part of the initial crew testing phases, the additionally contains requirements for (1) shoreside COVID-19 laboratory screening testing of all crew currently onboard; (2) onboard diagnostic testing capabilities for symptomatic travellers (crew and future passengers); (3) shoreside COVID-19 laboratory screening testing of all newly embarking crew; and (4) continued compliance by cruise ship operators with their complete, accurate, and acknowledged No Sail Order Response Plans.

The Messy, Booming Business of Recycling Cruise Ships

A drone image shows decommissioned cruise ships being dismantled at Aliaga ship-breaking yard in the Aegean port city of Izmir, western Turkey, October 2, 2020. REUTERS/Umit Bektas

Carnival Fantasy was a ship famous for its outlandish décor, all-night revelry and its size—back when 2,000 was an incredible number of passengers. The “Fun Ship” vibe it introduced in 1990 came with such whimsical spaces as an Egyptian-themed piano bar, decorated with a fake sarcophagus, and a glitzy glass-topped atrium that was the hub of the social scene.

Today the Fantasy is attracting a whole different breed of booty-seeker. In July, the 30-year-old ship sailed to the Aegean Sea, wrapping its final voyage in the shipbreaking capital of Aliaga, Turkey.

Its resting place there is a demolition yard where old cargo ships, tankers, research vessels—and now cruise ships retired during the Covid-19 pandemic—get torn apart and broken into pieces. In this case, they’re not being broken in half to get upgraded and stitched back together. Instead, circling the Fantasy’s partially deconstructed innards are buyers from all sorts of industries, looking for rock bottom deals on everything from artwork and kitchenwares to electrical wires and stainless-steel sinks.

For the cruise company, it’s an opportunity to recoup at least some value from an asset that’s currently acting as dead weight; while ships’ values decline with age, the Fantasy was originally built for about $225 million. And for the recycling companies that buy the vessel for cash and take on the hazardous task of emptying all its valuables, it’s a matter of a months-long salvage resale on steroids.

Cutting the Losses

It’s hard to gauge how exactly much money is made off of cruise ship recycling. Companies don’t immediately disclose the sale prices of the vessels after relinquishing ownership, and the resale value of their most sought-after commodity, scrap steel, fluctuates in each global market on a daily basis.

But the business is booming.

Next to Carnival Fantasy in Aliaga are two other Fantasy-class ships built in the late 1990s. And next to them are two former Royal Caribbean vessels (scrapped by Royal’s Spanish partner line Pullmantur Cruceros). The ships all had big fan bases, even as they aged. Fantasy and its sister ships started 2020 full of passengers bent on fun-in-the-sun activities in the Caribbean, Bahamas, and Mexican Riviera.

A drone image shows decommissioned cruise ships being dismantled at Aliaga ship-breaking yard in the Aegean port city of Izmir, western Turkey, October 2, 2020. REUTERS/Umit Bektas

The ships would have left the fleet in coming years even in a healthy industry; the pandemic sped up the process, with owners of idled vessels haemorrhaging cash and looking to cut their losses.

In its third-quarter filing, Carnival Corporation said it planned to sell 18 “less efficient” ships in 2020, resulting in a 12% reduction of its nine-brand fleet. “Those ships were giving us a bad drain,” Carnival CEO Arnold Donald said during a recent webinar with the Society of American Travel Writers.

Going, Going, Gone

Without much of a market for second-hand tonnage, the main worth of the ships is the steel that makes up the superstructure.

If, for instance, Carnival Fantasy has 15,000 tons of steel in its superstructure, the scrap may sell for upwards of $4.7 million based on current global market prices—though other factors also come into play, such as local prices and demand.

Decommissioned cruise ships are being dismantled at Aliaga ship-breaking yard in the Aegean port city of Izmir, western Turkey, October 2, 2020. REUTERS/Umit Bektas

Along with the risk of these market fluctuations, the buyer also takes on the uncertainty of just how much metal can be salvaged. Pre-1990s ships tend to have more steel in their hulls and underwater plating, but those built in the ’90s and after can bear lighter and stronger alloys.

Either way, steel and metal scraps will travel to a smelter to make rebar for construction projects around the world. Steel from some other dismantled ships can find its way to Turkey’s large car manufacturing industry, where it might become parts for a Toyota or a Ford.

Aluminum, copper, and stainless steel are also salvaged and resold, along with other valuable commodities that mostly remain in Turkey. The ripped out teak decks on Fantasy may end up in local shops, restaurants, and homes. Theatre scenery and lighting may find its way into show productions. Even the tackiest artwork has some value, and can end up in restaurants throughout the country.

Buyers come to the yard for everything down to the bolts and nuts. Even if a used toilet sells for a fraction of the shelf price, multiply that amount by a few thousand—given the number of cabins and public spaces on each ship—and it can add up to a substantial sum.

According to Orbay Simsek, vice president of the Aliaga-based Simsekler Ship Recycling Company, there are even markets for kitchenware, closets, and blankets.

Basically anything and everything that can be sold sells. Everything must go. Even the sarcophagus.

Eco-friendly Shipbreaking

Taking apart ships is a controversial topic, thanks to concerns over both human and environmental risks. It’s one of the most dangerous jobs in the world, according to Wouter Rozenveld, director of Sea2Cradle (SC2), an expert in green ship recycling who was hired by Carnival to oversee the safe dismantling of its ships. Each Carnival vessel may take up to nine months to break down, he says, and the blowtorch-based work comes with constant fire hazards.

Those hazards are amplified when the recyclable component pieces, like furniture, cabling, piping, and machinery inside each deck have to be carefully taken apart and separated says Ehud Bar-Lev, who oversees assessment services at maritime specialist Lloyd’s Register.

The extra steps in disassembly also increase the potential for hazardous waste spills, containing everything from oily residues to sludge, asbestos, and coolants in fridges.

To prevent those incidents, the Turkish shipbreaking yard undertakes its work in a concrete holding area that catches debris; in similar facilities throughout India and Bangladesh, the process may happen on the beach. Rather than letting toxic chemicals spew into the water, the Turkish yard collects the materials, has them catalogued by Sea2Cradle, and then hands them over to the government-run Ship Recycling Association of Turkey for proper disposal.

Carnival Corporation saw these precautions as a marketing opportunity, making a highly unusual move to publicize its efforts as “responsible recycling.” But it was the shipbreaking yard, not Carnival, that saw the biggest windfall as a result: never before has Aliaga seen five mega cruise ships in its harbour.

There may be more coming in the months ahead.

“The longer the pandemic rages on in the world, the more cruise ships will end up in scrapyards, and my guess is at an increasingly younger age,” says Manso Ng, a maritime management professor at Virginia’s Old Dominion University. “Even if a vaccine becomes available, how many of us will be comfortable jumping right back on cruise ships?”

German lockdown forces cancellation of Aida cruises

German cruise brand Aida Cruises has cancelled all voyages planned between October 31 and November 30, following news of Germany’s lockdown.

The Carnival Corporation brand said in a statement: “As a result of Germany implementing far-reaching measures to contain the coronavirus pandemic, Aida Cruises today (October 29) announced it will temporarily pause its cruises for November, cancelling all voyages planned between October 31 and November 30.

“This follows the federal government of Germany’s October 28 decision to impose further restrictions on public life and travel to limit the spread of Covid-19, which Aida Cruises fully supports.

“As the leading cruise line in Germany and a part of Carnival Corporation & plc, Aida Cruises’ highest responsibility and top priorities are compliance, environmental protection and the health, safety and well-being of its guests, crew, shoreside employees, and the people and communities its ships visit – and that commitment is reflected in the line’s temporary pause in cruise operations.

“Aida Cruises recognises its decision is disappointing to its guests and appreciates guests understanding the importance of making health and safety the most important priority.”

The cruise line resumed operations in mid-October and “will closely monitor the further development of the pandemic” before starting cruises again in December onwards.

With Covid-19 cases surging across Europe, Germany’s month-long national lockdown starts on Monday (November 2) with the closure of restaurants, bars, gyms and theatres.

Meanwhile, France will be going into lockdown from Friday (October 30) with citizens allowed to leave home only for essential work or medical reasons.

 Agents hailed as Regent Seven Seas Cruises reports record booking day

Regent Seven Seas Cruises saw its largest ever booking day when sales for its 2022-2023 Voyage Collection opened on October 21.

The previous booking day record for the 28-year-old cruise line was set in April 2018 with the launch of Seven Seas Splendor’s inaugural season.

All destinations saw high levels of interest, but cruises in Africa, Asia, the Mediterranean and northern Europe – especially the Baltics – were notably popular.

Jason Montague, president and chief executive, said: “The staggering response to our 2022-2023 Voyage Collection demonstrates the incredible future demand for the unrivalled Regent experience.

“Luxury travellers simply cannot wait to get back on the oceans to see the world again.

“Our loyal guests wasted no time in securing their perfect itinerary and suite with last year’s Voyage Collection launch day total eclipsed after only 90 minutes of being on sale.”

Graham Sadler, senior vice president and managing director, added: “This phenomenal achievement is a testament to the professionalism and tenacity of our talented UK travel partners and we would like to thank them for their support, without which the hugely successful launch of our 2022-2023 Voyage Collection would not have been possible.”

The collection features 148 sailings from April 2022 to April 2023, with 17 maiden ports of call for the line and 105 overnight visits.

Travellers will have access to more than 350 Unesco World Heritage Sites across thousands of free, unlimited shore excursions.

Covid-19 forces Costa Cruises to revise winter programme

Costa Deliziosa

Carnival Corporation brand Costa Cruises has altered its schedule for winter 2020-2021 because of travel restrictions and the continuing Covid-19 crisis.

The Italian cruise line said Costa Smeralda will operate an Italian-only itinerary to replace a voyage to Italy, France and Spain that would have started from November 14.

Costa Deliziosa (pictured) will continue operating its current one-week itinerary in Italy and Greece until January 3, 2021, instead of visiting Montenegro and Croatia as originally planned.

Costa Diadema will postpone the start of long cruises in the Mediterranean to April 6, 2021, offering 14-day cruises to Turkey and 14-day cruises to Egypt and Greece.

Costa Firenze cruise ship

New ship Costa Firenze, which is currently in the final stages of completion at the Fincantieri shipyard in Italy, will be delivered as planned in mid-December 2020 but will begin offering its seven-day cruises in Italy, France and Spain only from February 28, 2021.

Finally, Costa Favolosa cruises in the Caribbean are cancelled and the ship will return to operate from April 2, 2021, with mini-cruises in the Mediterranean.

The 2021 world tour by Costa Deliziosa is also cancelled, with guests offered the chance to book the 2022 voyage.

Marella and Tui River Cruises poised for summer 2022 launch

Marella Cruises and Tui River Cruises summer 2022 programmes go on sale on November 5.

One of three river vessels, Tui Maya, will go all-inclusive as standard.

Six additional itineraries will be available across three Marella Cruises ships, with another itinerary by Marella Discovery on sale from December 10.

Marella will put 18 cruises on sale next week and a further five in December covering islands such as Santorini, Kefalonia, Corsica, Sardinia and Sicily and cities like Dubrovnik, Barcelona, Split, Venice and Lisbon as well as gateway ports to Rome, Florence, Seville and Athens.

Marella Discovery will homeport in Palma for the fourth time after its first season in the Majorcan capital in 2016.

The all-inclusive offering onboard Tui Maya will include a range of alcoholic drinks and premium Lavazza coffee.

Those who upgrade to superior, superior French balcony or French balcony suite cabins will have a free minibar included in their package.

All departures on Tui Maya in summer 2022 will be on Fridays.

Two new itineraries have been added to the sailing programme on the Rhine and Main rivers.

Cruise managing director Chris Hackney said: “We’re pleased to be able to share details of our summer 2022 programme and we are really excited to offer our first all-inclusive ship in our river cruise line.

“We have something to offer everyone as we have itineraries visiting some of the best places in the world.

“Our river cruise line is constantly developing and we’re always listening to what our customers want and we want to offer even more choice when it comes to booking their cruise.

“With a high percentage of guests already booking all-inclusive, it only seemed right we created a ship dedicated to the board basis, so we know it’s something our customers will love.”

MSC Cruises to implement next-generation air sanitisation system

MSC Cruises will be the first cruise line in the world to install a new advanced air sanitization system onboard its ships.

The new technology sanitization system, known as Safe Air, will improve the quality and cleanliness of onboard air for all passengers and crew.

The Safe Air system will be fitted on MSC Seashore, which is currently undergoing construction at Fincantieri’s Monfalcone shipyard.

The first in MSC Cruises’ Seaside Eco class of ships, MSC Seashore is due to be delivered in July 2021.

Safe Air is just the latest in a string of new health and safety measures being implemented by MSC Cruises, following the Covid-19 pandemic and the temporary suspension of cruising.

The Safe Air system based on the technology of UV-C lamps which are type C ultraviolet rays applied in combination with the ship’s air conditioning system.

Airflow is radiated at the source with a short wavelength light that hits organic particles and prevents the circulation of air pollutants such as viruses, bacteria, and mould.

The system was developed by the Fincantieri’s designers and technicians and the virology laboratory of the International Center for Genetic Engineering and Biotechnology, a leading global research institute headquartered in Trieste, Italy.

While MSC Seashore isn’t due to launch until 2021, the cruise line is implementing a host of other strict health and safety procedures in the meantime.

Since partially resuming operations on 16 August on MSC Grandiosa, MSC has been following procedures like universal health screening before boarding, temperature checks, health questionnaires, Covid-19 antigen swab tests, and the wearing of face masks.

Other aspects of the protocol include enhanced sanitization and cleaning, a social bubble for shore excursions, testing of the crew, enhanced medical facilities, and daily health monitoring.

AVANGRID and PNM Resources Announce Merger Plans

AVANGRID, a leading sustainable energy company, and PNM Resources announced today that their respective boards have approved the merger of PNM Resources into AVANGRID. Ignacio Galán, chairman of AVANGRID and chairman of IBERDROLA Group, said, "This transaction is a consequence of the IBERDROLA Group’s disciplined strategy followed over more than 20 years. This is a friendly transaction, focused on regulated businesses and renewables in highly rated states with legal and regulatory stability and predictability offering future growth opportunities."

Dennis V. Arriola, AVANGRID’s CEO who will continue as CEO of the combined company, said, “This merger between AVANGRID and PNM Resources is a strategic fit and helps us further our growth in both clean energy distribution and transmission, as well as helping to expand our growing leadership position in renewables.  Our two companies also share the same values as we both are passionate about our customers, employees and the communities we serve. In addition, both AVANGRID and PNM Resources are leaders in environmental, social and governance issues that impact our stakeholders.”

Pat Vincent-Collawn, chairman, president and CEO of PNM Resources, stated, “We are excited to be part of this transaction that provides so many benefits to our customers, communities, employees and shareholders.  Our combined companies provide greater opportunities to invest in the infrastructure and new technologies that will help us navigate our transition to clean energy while maintaining our commitments to our local teams and communities.”

AVANGRID will add two independent board members from PNM Resources to its board of directors and one independent board member from PNM Resources will join the AVANGRID Networks board.

Key Highlights

• The transaction is expected to be EPS accretive in the first full year after closing.  
• As a result of PNM’s earnings from regulated distribution and transmission assets, it is expected that AVANGRID’s regulated earnings contribution post-transaction will exceed 80%.  This proportion of regulated earnings will support AVANGRID’s fast-growing renewables business over the next decade.
• The purchase price represents a premium of 10% over the PNM`s share price as of Tuesday 20th October and 19.3% over the average PNM share price during the 30 days prior to 21st  October. 
• AVANGRID’s majority shareholder, Iberdrola, has provided the company with a funding commitment letter for the entire equity proceeds for the transaction. 
• As a result of this transaction, PNM’s shareholders will receive approximately $4.318 billion in cash. 

The agreement between AVANGRID and PNM Resources is subject to approval by PNM Resources shareholders. In addition, the transaction will require approval from a number of state and federal regulators including the New Mexico Public Regulation Commission, Public Utility Commission of Texas, Federal Energy Regulatory Commission, Hart Scott Rodino Clearance, Committee on Foreign Investment in the United States, Federal Communications Commission and the Nuclear Regulatory Commission.  Regulatory approvals are expected to be completed in approximately 12 months.

AVANGRID currently owns 1,900 MW of renewable energy and a pipeline of 1,400 MW of renewables assets in New Mexico and Texas.  In addition, Iberdrola operates a retail business in Texas. For more than 15 years, Iberdrola has also funded the King Felipe VI Chair in the Department of Electrical and Computer Engineering at the University of New Mexico.

From Warships to Wind Turbines: Spain Shipyard Eyes EU Aid in Pivot to Wind Power

FILE PHOTO: DJ Mattaar / Shutterstock

Spanish shipbuilder Navantia is stepping up its bet on offshore wind energy, a venture that stands to benefit from the European Union’s fiscal response to the pandemic.

The landmark 750 billion-euro ($890 billion) pandemic-recovery aid will encourage Spain to invest more in clean energy. That could galvanize the company’s recent pivot into sea-based power projects, said Managing Director Javier Herrador del Rio. With demand flagging for its military vessels, Navantia has branched into building the massive foundations for wind turbines that can stretch out of the water as high as a 50-story office building.

The comment underscores how companies across the EU are gearing up to take part in the bloc’s biggest-ever stimulus package. Europe’s leaders have said they want countries to spend a significant portion of the funds on making the regional economy more carbon-neutral. Navantia’s green projects might become a test case for the program.

‘Highly Cyclical’

Spain and Italy are poised to be among the largest recipients of the funds and both countries are hashing out details of how to spend the money. The fiscal jolt is an opportunity for the Spanish administration to start investing in offshore wind farms in the northern Galicia and Basque regions and in southern Andalusia, Herrador del Rio said.

Naval shipbuilding “is highly cyclical and even more so during such volatile times like we’re living through now – when we exit one crisis and then fall into another,” the managing director of Navantia’s Bay of Cadiz Shipyard said in an interview. Rocky economic times limited Spain’s ability to invest in new ships and forced state-owned Navantia into more manufacturing areas. The offshore wind became a strategic priority in 2018, he said.

The firm’s fortunes have ebbed since the 1980s when demand was high for made-in-Europe warships and oil tankers and the company employed about 40,000. While staff has since dropped to about one-tenth of that, it was still able to take on Saudi Arabia’s 2018 order of five corvettes for its navy, one of Navantia’s few major shipbuilding contracts in recent years.

Incipient Industry

While Spain was a global pioneer in solar and wind projects, the offshore wind-park industry is still quite young. Contracts Navantia has signed in the sector don’t generate nearly as much revenue as building submarines and aircraft carriers.

Overall, companies globally are operating about 30 gigawatts of offshore wind energy, said Imogen Brown, an analyst at BloombergNEF, an energy research firm. That’s a fraction of the 611 gigawatts of land-based wind projects, based on data through 2019, she said.

Most of the turbines are in the North Sea, off the coasts of the U.K., the Netherlands, Denmark and Germany. The strong winds and comparatively shallow seabed have allowed major players such as Denmark’s Bladt Industries and the Netherlands’ Sif Group to anchor what is known as “bottom-fixed” turbines to the ocean floor.

Navantia has received commissions for 10 projects since 2014, including orders to manufacture several dozen bottom-fixed turbines for Iberdrola’s 500-megawatt offshore wind farm in Brittany.

The Mediterranean Sea that borders much of Spain has relatively deep waters. That has pushed Navantia and other manufacturers, including Italian shipbuilder Saipem SpA, to shift their focus to floating wind turbines. But the technology is still incipient and there’s not a standardized design, Brown said.

“It’s only demonstration projects that have been commissioned so far,” she said. “We think bottom-fixed wind turbines will still be the driver in the market pre-2030.”

Europe’s increased funding for clean-energy projects will help to bolster investments in technologies to improve floating projects, Herrador del Rio said at the company’s Puerto Real shipyard near the Strait of Gibraltar, the strategic entrance to the Mediterranean from the Atlantic Ocean. That funding will eventually lead to building more wind farms off the Spanish coasts and in the Mediterranean Sea.

“Sooner or later it will become a reality,” he said. “I’m convinced.”

P&O Australia Expecting 'Rebound' of Local Cruise Industry

P&O Cruises Australia earlier this week announced the next stage of its fleet transformation with both the Pacific Adventure and Pacific Encounter (ahead of schedule), arriving in the first half of 2021 in a mark of confidence in the expected rebound of the local cruise industry, according to the company.

The ships are the current Golden and Star Princess. The Pacific Adventure will begin sailing from Sydney on April 30 next year and the delivery of Pacific Encounter is being brought forward by at least six months to ensure the local fleet is poised to drive the resurgence of cruising at the right time, the company said.

The Pacific Encounter is scheduled to call Brisbane home from May 7, 2021 – but additional voyages may be added even earlier, depending on the timing of the return of cruising in Australia.

“The arrival of these much-anticipated ships, Pacific Adventure and Pacific Encounter, in the first half of next year represents a step-change for the fleet and a sign of confidence in the market,” P&O Cruises Australia President Sture Myrmell said.

“This investment in our fleet is a demonstration that P&O Cruises Australia is ready to lead the industry in bouncing back when government and public health authorities agree it is appropriate to begin sailing again with protocols in place.

“It is also a mark of respect for our many loyal guests as well as crew, fresh food suppliers, entertainers and musicians, shore tour operators and port logistics partners who are looking to be a part of the resurgence of the Australian cruise sector over time.

“These have been challenging times for the entire community and, for our part, we have sought to use this operational pause to fast-track our planned fleet refresh. Our pathway to a return to cruising may be unclear but we wanted to give our guests confidence about our future fleet and our commitment to Australia and New Zealand,”  Myrmell said.

Key Takeaways: 

• The Pacific Adventure will call Sydney home. Her first voyage is a three-night Short Break scheduled for April 30, 2021.
• The Pacific Adventure was originally planned to debut in November this year but was delayed due to the global COVID-19 pandemic.
• Brisbane’s new international cruise terminal will become the new homeport for the Pacific Encounter. At this stage, her first voyage is scheduled to depart Brisbane on May 7, 2021, and is a three-night Short Break. Additional voyages may be added earlier, the company said.
• The Pacific Explorer will be homeporting from Auckland, New Zealand from February 6, 2021, to her last voyage on April 25, 2021.

The company, citing COVID-19, also said the waterslides will be installed at a later date.

Alaska’s Lost Cruise Season is Costing the State Bigly

The COVID-19 pandemic’s impact on the cruise industry is hitting Alaska harder than another state in the nation, according to a new report by the U.S. Federal Maritime Commission (FMC).

The report, issued by Commissioner Louis Sola, examines the economic impact of COVID-19 on the cruise industry in Alaska, Washington, and Oregon. The impact on Alaska’s economy is perhaps most jarring.

Alaska’s economy rests on three key industries: energy, fishing, and tourism, the FMC said in its report. The last category has been a growth industry for Alaska, with the number of visitors increasing 45% from 1.5 million in 2010 to 2.2 million in 2019.

Losing the entire 2020 cruise season meant missing out on the $1.24 billion in revenue and 22,000 jobs that the cruise industry was estimated to generate this year.

“In 2019, twice as many people than the number who live in the state came to Alaska and took a cruise. With the suspension of the cruise season, the economic activity of 1.3 million was wiped out of the Alaskan economy for the year. Under the best of circumstances and in any other state, there would be no disguising the consequences of losing that much revenue. In Alaska, in the context of the cruise industry, the consequences are greatly exacerbated,” said Commissioner Sola.

According to the FMC, cruise ship operations create unique commercial opportunities for Alaska residents and businesses. Some port facilities and terminals exist solely to support passenger's vessels. It also impacts the hotel sector and building, as well as dining, lodging, transportation, and shopping that support the local economy and infrastructure. One difference between Alaska and other states is that in many locations, the cruise industry may be the only economic driver, the FMC report said.

Another economic consequence of the loss of the 2020 Alaska cruise season is the missed direct contribution the cruise companies make to the state. In addition to providing services to tourists, cruise companies operating in Alaska base thousands of crew members in the state. Those seasonal residents pay rent, shop in grocery stores, eat in restaurants, and purchase services. In addition, cruise lines and their subsidiaries, spend close to $300 million in procuring goods and services from Alaska-based companies.

“If a ship does not call, especially at some of the smaller cruise focused ports in Alaska, people do not make money. If there is no cruise ship in port, there is no work for the longshoremen. If there is no cruise ship in port, no one is shopping in local businesses or eating in local restaurants. If there is no cruise ship in port, landside tour companies have no clients. In major metropolitan areas with major seaports, there will more likely be other opportunities for people to pursue while they wait for cruise ships to begin operating again. In many places in Alaska, the cruise business is the local industry. These are cities of hundreds, or a few thousand, residents. The people, businesses, and ports in those locations are facing the unenviable challenge of what to do before next year’s cruise season,” said Commissioner Sola.

The economic impact to municipalities and the state is also significant and not only because of the loss of tax revenues to the general fund. Cruise ships operating in Alaska waters, and passengers aboard those vessels, are subject to a variety of fees that finance necessary cruise industry infrastructure as well as environmental conservation efforts that protect areas in which the ships operate. The Commercial Vessel Passenger Tax, the Commercial Passenger Vessel Environmental Compliance Program, and the Ocean Ranger Program, all rely on fee payments tied directly to cruise companies and cruise passengers.

It’s not just the major cruise lines either. Smaller operators that are U.S.-based companies or who sail U.S. flagged ships also serve the Alaska market.

The nature of the Alaska cruise industry ties that state to Washington and Oregon. he Port of Seattle is the homeport for many cruise ships and more than one million individuals fly in and out of the Seattle-Tacoma International Airport to take cruise voyages. The hotel, ground transportation, and tourism sectors have all been affected by the cessation of cruise operations in general and the suspension of the Alaska season in particular. Similarly, the Port of Astoria, Oregon has weathered an economic impact as a result of the lost cruise business.

“The Alaska cruise season is short, lasting approximately only five months. While the 2020 season is lost, there is hope for the 2021 season. Companies and port authorities are focused on the steps necessary to safely return to full operations and to provide cruise customers with the assurances necessary to be confident again boarding a vessel. Better than most, the men and women who are government officials, port executives, and tourism leaders know what is at stake and are doing what they must to limit their losses and welcome back cruise passengers,” said Commissioner Sola.

UK Welcomes First Cruise Since Pandemic

Portsmouth International Port has become the first British port to welcome a cruise since the start of the coronavirus quarantine, according to a statement.

SeaDream Yacht Club’s vessel, SeaDream 1, stopped in Portsmouth on Oct. 19 to pick up 19 passengers for a transatlantic voyage to the Caribbean.

The yacht, which can normally hold 110 guests, is running its voyage based on the most recent strict health and safety protocols, according to a press release. 

All the passengers had to test negative for the coronavirus no more than 72 hours in advance, as well as immediately before boarding.

Extensive cleaning and sanitation regimes are in force on the vessel, according to the press release by Portsmouth.

“We’re experienced at managing passengers in a COVID secure way, with ferry sailings taking place regularly since July following strict protocols,” the Head of Operations at Portsmouth International Port, Ian Diaper, said. “This had given us insight for what’s required and we’re ready to help the industry recover when cruise returns to its full capacity.”

“It’s testament to everyone’s hard work that SeaDream Yacht Club was confident to use Portsmouth as the first UK port to manage a turnaround call since sailings were suspended,” he added.

In addition to welcoming the first cruise since the start of the pandemic, Portsmouth has also become the first UK port to install a thermal imaging camera. The port received DNV-GL’s independent verification for its coronavirus prevention measures.

All crew members at SeaDream 1 have completed the WHO's Infection Prevention and Control (IPC) for COVID-19 course, as well as Johns Hopkins University’s COVID-19 Contact Tracing course.

The SeaDream 1 is performing a 21-day trip from Norway to Barbados. After she arrives in the Bajan capital of Bridgetown on Nov. 5, the yacht will be operating 7-day round trips from and to the city – calling at Bequia, St. Vincent and the Grenadines, and Grenada. 

Zito: Swan Hellenic Ready for Strong Start-Up

The CEO of Swan Hellenic, Andrea Zito, said that the company is in a good position ahead of its launch in 2021.

“We are receiving only positive comments from the former customers of Swan Hellenic. The sector is reacting very well to the fact that Swan Hellenic is being resurrected in a way,” Zito told Cruise Industry News.

The first of two new expedition ships, the m/v SH Minerva, debuts into service for the brand in 2021.

The revived Swan Hellenic launched earlier this year. However, the brand is actually 70 years old and was acquired in December 2020.

“One and a half [years ago], the group started the negotiation and placed the order for two ships with Helsinki shipyard for delivery at the end of 2021 and mid-2022. And then the pandemic came. This was not really planned,” Zito said.

The coronavirus pandemic caused Swan Hellenic to postpone any announcements from spring to July. However, otherwise, Zito’s company had adjusted to the challenging conditions.

“It’s a little bit slower, but we are doing things very efficiently. It is amazing to realize how many things you can accomplish without travelling continuously,” he said, describing the challenges of having offices in different European countries.

Zito said that Swan Hellenic offers what seasoned travellers look for.

The company will sail to destinations in New Zealand, Pacific Islands, Russia, and, Zito said proudly, the semi-circumnavigation of Antarctica.

“Our ships are some of the very few ships that have Polar Class 5 ... So we can stay longer, we can go deeper in the environment and, most importantly, we can go safer because the characteristics of the ships are of higher safety standards to ensure that passengers are well protected,” he said.

According to Zito, Swan Hellenic’s ultimate goal is to cover the whole world.

“It's not just a box-ticking exercise, it caters to people who are thirsty for knowledge: they are curious and they want to discover various parts of the world. And the world is still very big.” 

Cruising Predictions About Testing, Destinations, Health Bubbles and the Permanence of Protocols

Independence of the Seas in Laderbee Haiti 

It should come as no surprise that the main topic on everyone’s mind during this year’s Seatrade Cruise Virtual industry convention was COVID-19, with a particular focus on restarting operations. Despite such daunting challenges, the cruise travel market is the most optimistic it has been since shutting down sailings.

Among the takeaways were the following key points.

Testing, Testing, One, Two, Three

More than anything, testing for the novel coronavirus was presented as the most important step for cruising’s eventual return — specifically, the 100% testing of all passengers and crew before boarding any ship as outlined by Cruise Lines International Association (CLIA).

In fact, Rick Sasso, president and CEO of MSC Cruises, believes testing effectively makes vaccines “irrelevant” as tests will help weed out any instances of COVID-19 regardless of who has or who has not been inoculated.

Another common belief is that while testing is a crucial “first gate,” as stated by Dr. Grant Tarling, chief medical officer, Group Health Services at Carnival Corporation, it is still possible that the virus could make its way onboard. Thus, multiple layers of protection including masking and physical distancing, as well as case isolation as needed, will be implemented.

Protocols Not Permanent

It is also good to remember that the strictest health protocols will not be in place forever. Donnie Brown, vice president of maritime policy at CLIA, anticipates stringent measures to exist at the “initial resumption” but looks forward “to being able to scale them back in time.”

He said what will contribute to the eventual loosening of protocols is a combination of easing restrictions on terrestrial travel; the availability of treatments and vaccines; and the remaining prevalence of COVID-19 in source markets and destinations.

Next Up: The Caribbean

Trunk Bay in St. Johns

The Caribbean is expected to be one of the first destinations to return for North American travellers, who can look forward to a gradual phasing in of ports, not all of which will likely be available on initial itineraries.

Holland America Line’s new president Gus Antorcha emphasized that cruise lines’ own private islands will come into play more to start, but traditional destinations are not out of the running.

Even if there are more restrictions, to begin with, sanctioned shore excursions are not necessarily a bad thing. Josh Leibowitz, president of Seabourn, pointed out that the cruise industry actually started out with “controlled” tours.

Ultimately, “pleasure should not be restricted,” said Clarice Modeste-Curwen, minister for tourism and civil aviation, Grenada Tourism Authority, but the region is rethinking attractions as needed, as well as avoiding mass gatherings with smaller groups. She specifically cited beaches and health-focused tours as good offerings.

It will come down to instilling traveller confidence in destinations and building mutual trust between ports and cruise lines, and those discussions are well underway.

Alaska’s Health Bubble

Both Holland America Line (HAL) and Windstar Cruises have specifically said they are planning for full 2021 Alaska seasons.

Equally anticipating next year’s return are Alaska’s individual ports of call. Skagway, for one, depends on cruising for a staggering 90% of its local economy, according to Andrew Cremata, borough mayor of Skagway.

"We want [guests] to have a completely free experience while they’re in the port,” he said.

Cremata discussed how a health bubble can be created on a ship, but also in a small destination such as Skagway, where visitors can still openly wander beyond shore excursions to hike, shop or dine. Crucial to that will be routinely testing seasonal workers so the local bubble and incoming bubble can safely interact.

Demand and Demographics Remain Steady

Also positive is the news that traveller demand remains high. Colleen McDaniel, editor-in-chief of Cruise Critic, spoke of the emerging trend of “revenge travel,” and the huge desire there is to get back out there, particularly among those who have cruised before. She said cruising is already their preferred vacation, and they miss cruising with friends.

HAL’s Antorcha does not see demographics shifting either. Those who “took travel for granted,” are raring to go, and, perhaps surprisingly, older guests are disproportionately booking cruises right now, he said.

Similarly, MSC’s Sasso believes loyalists will return. First-timers “may have been moved a little bit away from the fence,” he said, but there’s an opportunity to capture a new audience that appreciates all the robust steps the cruise industry is taking to ensure the healthiest of environments.

Travel Advisors Are Key

“Coming out of this, [travel agents] will never be in greater demand,” said Alex Sharpe, president and CEO of Signature Travel Network.

Sadly, Sharpe does foresee a smaller community that is “leaner and meaner,” but also one that has a chance to quickly grow back as consumers need help understanding everything. The additional silver lining, he added, is the potential for greater revenue per advisor with fewer in the market.

To that end, Dan Blanchard, owner and CEO of UnCruise Adventures — who said “God bless agents” — remains very thankful for advisors’ continued support and advised them to become as knowledgeable as possible about all the new protocols to keep their edge moving forward.

MSC holds out hope for UK passengers as the second ship sets sail

A second MSC Cruises ship has resumed service after Covid forced a pause in operations for much of the year.

MSC Magnifica follows MSC Grandiosa, which is on its ninth voyage, as the second ship to implement MSC Cruises’ comprehensive health and safety protocols.

MSC Magnifica departed Genoa on a 10-night Mediterranean cruise with calls at the ports of Livorno for visits to Florence and Pisa, Messina in Sicily, Piraeus for Athens, Katakolon for Olympia, Valletta in Malta, and Civitavecchia for Rome, before returning to Genoa. 

MSC Cruises UK managing director Antonio Paradiso said that the line was ready to welcome back British passengers when government guidance is relaxed.

He said: “MSC Cruises are ready to welcome British and Irish residents when the FCDO guidance changes.

“We are working closely with Clia and the relevant authorities to enable British and Irish guests to be welcome back on board our ships when the time is right.”

MSC Magnifica Successfully Sets Sail From Italy

MSC Magnifica on the Firth of Forth.

MSC Cruises’ Magnifica has departed from the port of Genoa in Italy, has become the company’s second ship to restart sailing since the start of the pandemic, according to a press release.

The MSC Magnifica is sailing a 10-day round voyage of “relaxation and discovery in the West and East Mediterranean Sea” with plans to call at the port of Livorno for visits to Florence and Pisa, Messina in Sicily, Piraeus for Athens, Katakolon for Olympia, Valletta, Malta and Civitavecchia for Rome.

This comes two months after the MSC Grandiosa departed from the same port, also with a strictly Italian itinerary.

The MSC Grandiosa was the first major cruise vessel to return to service, according to the press release.

The MSC Cruises’ health and safety protocol entail “universal health screening” of everyone – guests and crew – which includes tests for COVID-19 before they can board a ship, elevated sanitation and cleaning measures throughout the vessel, managed social distancing, wearing of face masks in public areas, and the use of technology to aid track and trace on board.

In this initial phase, the MSC Magnifica’s capacity has also been reduced to 70 per cent to ensure social distancing onboard, according to the company.

Guests onboard the MSC Magnifica can enjoy shore excursions that were organized by the company. These excursions will see the same health and safety standards practised ashore as onboard to not only protect the guests and crew but also the communities in the ports of call.   

At this point, both the MSC Magnifica and the MSC Grandiosa itineraries are available for booking for the residents of the Schengen area only. 

Miami Hoping to Ease Up Cruise Line Guarantees in Support Push

PortMiami is continuing to step up to help the cruise industry, as the officials hope to push through regulations to alleviate cruise lines of minimum passenger guarantees during their recovery phase.

Already waving fees for ships docking for technical and crew repatriation reasons, the port hopes to relieve cruise lines of their minimum annual passenger guarantees, according to a document submitted Miami's Ports and Tourism Committee. 

This would come in exchange for the cruise lines to "maintain or increase their PortMiami market share relative to other U.S. ports in terms of passenger volumes and/or (2) to guarantee vessel calls; and (3) on a cruise line by cruise line basis, to meet any other additional conditions required by the County Mayor or County Mayor’s designee, if any, in his/her discretion (i.e., return of available weekend berthing rights, modifications to the scope of the County-funded components of construction projects or other County borne construction-related obligations, etc.)."

Cruise lines will be required to pay dockage and wharfage at their minimum contractual rates or those published in Port Tariff No. 010 (tariff rates for the Fiscal Year 2020-21 are $13.12 for wharfage and $0.405 per gross registered ton for dockage), in both cases subject to a 3% annual rate of escalation, according to the documents submitted.

"The passenger shortfall and surplus accounts shall not apply during the Recovery Period, nor shall any additional credits accrue during any portion of the Recovery Period; and Any parking-based incentives granted under their respective preferential berthing rights or terminal usage agreements will be waived throughout the Recovery Period."

The port said it expects the Recovery Period to last up to 24 months.

Of note, the port explained the fiscal impact through the end of the Fiscal Year 2019-20 of the first phase of the Recovery Period is $55 million, consisting of forgone net revenues derived from cruise wharfage and dockage fees. This has been offset by $35 million in expense reductions resulting from the port.

Hurtigruten Prepares for Growth, Establishes Separate Expedition Cruise Entity

Hurtigruten has announced it will redefine its growing cruise operations by establishing a separate expedition cruise entity, citing strong demand for 2021 and 2022 expedition sailings.

"2020 is a tough year for everyone in the travel industry. But the set back is only temporary. For the second half of 2021 and beyond, we are seeing a strong demand across all markets and all destinations, including the Norwegian coast, the Arctic and Antarctica," said CEO Daniel Skjeldam.

"The demand reflects our predictions that expedition cruises, with all our advantages such as smaller ships, more flexibility and fewer guests, will prove even more popular post-COVID-19," he added.

"We have only seen the beginning of what’s to come. Hurtigruten sees great demand and equally great opportunities in the expedition cruise segment from 2021 and beyond. This is the growth we are preparing for."

Thus, the company is reorganizing its cruise operations in two different entities: Hurtigruten Expeditions and Hurtigruten Norway.  

Hurtigruten’s expedition cruises include more than 250 destinations from pole to pole, ranging from the Northwest Passage, Greenland, Norway, Svalbard, the British Isles to the Caribbean, South America and Antarctica.

Asta Lassesen has been appointed CEO of Hurtigruten’s global expedition cruise operations.

"As Hurtigruten continues to grow our expedition cruise offering, we will keep doing what we do best: Combining almost 130 years of exploration with cutting-edge innovation and our unparalleled commitment to sustainability to deliver unique experiences in some of the world’s most awe-inspiring destinations," said Lassesen.

Hurtigruten’s expedition cruise entity will operate a fleet of eight small sizes, custom-built and green expedition cruise ships, the company said.