Costa Toscana floated out at Meyer Turku shipyard.

Costa Toscana has been designed to be a travelling 'smart city' (Image: Costa Cruises)

Costa Cruises’ newbuilding Costa Toscana was floated to the outfitting pier at Meyer Turku shipyard ahead of its entry into service later this year

Costa Toscana is the third of five LNG-powered newbuilds ordered by Costa Group for its subsidiary lines. Two other vessels, Costa Smeralda and AIDAnova have already entered service. They are part of an expansion plan that includes seven new ships to be delivered to Costa Group by 2023, for a total investment of more than €6Bn (US$7.27Bn).

Costa said the vessel has been designed to be a travelling ’smart city.’ The use of LNG is expected to eliminate sulphur dioxide emissions and reduce particulate matter into the atmosphere by over 90% while also lowering nitrogen oxide up to 85% and CO₂ emissions by up to 20%.

Desalinisation plants on board will process seawater directly to meet the vessel’s daily water supply requirements, and energy consumption will be reduced to a minimum via an intelligent energy efficiency system. In addition, 100% separate collection and recycling of materials such as plastic, paper, glass and aluminium will be carried out onboard, as part of an integrated approach aimed at supporting circular economy projects.

The vessel’s design was curated by hospitality designer Adam D Tihany who worked with Milanese architects Dordoni Architetti, New York-based Jeffrey Beers International and cruise ship specialist Partner Ship Design in designing different areas of the ship. Costa Toscana features Italian-made furnishings, lighting, fabrics and accessories.

At the heart of the new flagship is the Colosseo – a three-deck-high, midship-located show lounge featuring large LED screens mounted on its walls and dome. The vessel features 2,600 cabins for its occupants and the Sea Terrace cabins offer a verandah with a view of the ocean.

Costa Cruises chief commercial officer and president of Costa Group Asia, Mario Zanetti said "Despite the current challenging scenario, Costa Group is confirming its investment in fleet expansion. We are confident in the recovery of our industry, and we are excited about the arrival of new ships like Costa Toscana, which embodies the elements we want to focus on for the future.”

Meyer Turku chief executive Tim Meyer said "The float-out is always a very special occasion for us shipbuilders, as the ship is finally set to its natural environment. As this is also the start of the final stage of shipbuilding, all the exciting colours, venues and features will start taking their final form. In the coming months it will be finalised at the pier and then tested and commissioned in Q3 for delivery. "

Once interior fittings have been completed, Costa Toscana will make its maiden voyage in Brazil in the 2021-22 cruise season departing Santos on 26 December 2021, with a week-long itinerary visiting Salvador and Ilhéus, before returning to Santos on 2 January 2022.

Brittany Ferries launches first LNG-powered ferry to serve the UK

Salamanca, the newest LNG-powered addition to Brittany Ferries’ fleet took to the water for the first time on 6 January 2021 at China Merchants Jinling shipyard in Weihai, China, where it is under construction.

The second of three E-Flexer-class ships ordered by Brittany Ferries, 42,000-gt Salamanca will join sister ship Galicia which entered service in December 2020. The 215-m vessel will serve a long-distance route connecting the UK with Spain and will carry 1,015 passengers, with over 2.7 km of lane-space to house passenger and freight vehicles.

Salamanca features two Wärtsilä 12V46DF engines generating 13,740 kW each. Electricity production onboard comes with low CO₂ emissions and alternators installed on shaft lines produce energy even at low speeds.

All the E-Flexer vessels have been designed with a view to improving the environmental impact and improving efficiency with particular attention given to fuel-efficient propulsion plants and a long, slender hull and bow design. The underwater hull features a friction-reducing silicon paint coating which further reduces fuel consumption while the propeller and rudder design bring improved manoeuvrability.

Bow thrusters work in harmony with articulated rudders, making it possible to facilitate tight turns in the harbour and the system dispenses with the need for stern thrusters. Fin stabilisers minimise roll and reduce vibration.

The newbuild is part of the ferry operator’s fleet renewal strategy as part of a larger five-year recovery plan. While Brittany Ferries said the investment in new ships was made well before the Covid-19 pandemic began, the strategy is expected to help future-proof services by ensuring the continuity of passenger and freight services with a trio of cleaner, more efficient and comfortable vessels.

President Jean-Marc Roué said “In spite of Brexit and Covid which have cost our company several hundred million euros already, I am resolved to remain on our path towards eco-responsibility and energy transition. It is a formal commitment I’ve made: we will continue, despite these crises, to reduce our carbon footprint, to keep on improving our fleet and to contribute to the development of the regions we serve. Salamanca is a good illustration of this. By renewing our fleet today, we are ensuring a return to growth tomorrow and Brittany Ferries and our partners remain confident in the future.”

The facilities for storing LNG will be supplied by Repsol in Spain. Under the terms of the agreement, the fuel company will build two quayside LNG bunkering terminals in the ports of Santander and Bilbao, including a 1,000-m³ storage tank to ensure uninterrupted supply for Salamanca and a future vessel Santoña.

“Passengers expect more comfortable, cleaner, greener vessels and society rightly demands sustainability as a standard. Shipping companies that fail to improve are therefore destined to fail,” said Brittany Ferries chief executive Christophe Mathieu.

“It’s why these E-Flexer ships are so important as we look to emerge from the current crisis. Galicia, Salamanca and Santoña are clear evidence that we are determined to sail towards a sustainable and a successful future.”

Salamanca will join the above mentioned Galicia in 2022 and the third LNG ferry Santoña will follow in 2023.

Shell Acquires Majority Stake in the Celtic Sea Floating Wind Farm

By Laura Hurst (Bloomberg) —

Royal Dutch Shell Plc agreed to buy a 51% stake in an Irish project to develop a floating wind farm in the Celtic Sea.

Simply Blue Energy’s Kinsale venture will develop the Emerald floating wind farm, with 300 megawatts of capacity initially and the potential to scale up to 1 gigawatt. The companies didn’t disclose the value of the deal.

Shell divested its upstream oil and gas assets in Ireland in 2018, but the new acquisition falls into a growing list of investments in renewable and low-carbon assets designed to help the company achieve climate goals set out last year. Earlier this week, the Anglo-Dutch supermajor bought the U.K.’s largest public electric vehicle charging network, while at the beginning of the month it invested in a waste-to-fuels plant in Canada.

“This project could provide green power to consumers and businesses alike and contribute towards Shell’s ambition to be a net-zero emissions business by 2050, or sooner,” Collin Crooks, Shell vice president for offshore wind, said in a statement.

The project will also help the Irish government meet its climate target of 5 gigawatts of offshore wind by 2030, Simply Blue Energy CEO Sam Roch-Perks said.

Shell has been involved in offshore wind since 2000 and has more than 6 gigawatts of wind projects in development, according to its website. Its wind assets are mostly in The Netherlands and the U.S.

Harland & Wolff: New Cruise Refurb Player

Harland and Wolff with three Viking cruise ships one in the massive drydock.

Led by new owners InfraStrata, Harland & Wolff is lining up cruise ship drydocks for its two large docks in Belfast. A trio of Viking ships was among customers in 2020.

“It was part of a strategic acquisition,” said John Wood, CEO, InfraStrata. “There are no drydock facilities in the UK for cruise vessels. We have two docks, 556 meters and 335 meters, and they are ideally located for cruise ships in Belfast.”

The new owners have been busy investing in the facility, spending money on new dock gates, power lines and robotic welding equipment as well as other upgrades.

The 85-acre facility is also growing. When the new owners came aboard, there were 65 employees, which has grown to over 200, and a new office is being set up in Miami to better liaison with cruise customers, said Wood.

"We expect (this year) to be busy with cruise ships. Everyone has been out of service for the past nine months. We see the classification dockings ramping up as the ships come back into service,” Wood continued, saying he expects demand to increase in the first and second quarters as the industry stages a staggered return to service.

Financial

What will be a huge boost for the cruise industry will be export credit financing on refurbishment projects, Wood said.

“We have worked closely with the UK government and put a couple schemes together. It’s something the UK government wants to do, is to encourage cruise work, and we’ve got two of the biggest docks in Europe and intend to make Belfast one of the cruise refit centres.”

Plans eventually call for deepening the facility’s 556-meter dock, and so far, cruise customer has been happy to hear about export credit options, meaning they can pay for projects later.

“We’ve seen a real shift in the past six weeks. We’ve gone from cruise lines saying ‘Yeah we’ll look at March or April’ to ‘We’d like to dock between these dates and here are our specifications.’”

That has been based on a mix of an expected return to revenue service and export credit financing.

Wood has also gotten creative, hoping to deliver his customers better value for their refurbishment budgets.

“We are looking at docking three vessels in our big dock at once. This will drastically reduce the cost of the drydock for the owners and bring in the OEMs at the same time (for three ships),” he explained. “There are big cost savings there. We’re also working up another proposal around that concept of having two large vessels side-by-side in one dock.”

Excerpt from Cruise Industry News Quarterly Magazine: Winter 2020-2021

One Year Without Cruise Passengers? It Just Happened

On Jan. 25, 2020, the cruise industry saw the start of the events that left the industry with damages it’s still recovering from. Cruise lines started cancelling their sailings due to the outbreak of the coronavirus in Wuhan and around China.

Citing urgent guidelines from the Chinese government to combat the spread of the coronavirus, Costa Crociere, MSC, Royal Caribbean and Genting Cruise Lines all suspended their cruise operations in mainland China on Jan. 25, 2020.

Ships marking a year without passengers:

• Astro Ocean's Piano Land.
• MSC's Splendida.
• Genting's SuperStar Gemini.
• Costa's Serena, Atlantica and Venezia, plus the neoRomantica which has since been sold to Celestyal.
• Royal Caribbean's Spectrum of the Seas.

February continued as cruise lines first banned or put in restrictions for passengers from specific countries.

Then countries in Asia started to shut down to tourism and cruise lines issued non-stop itinerary changes for immediate and future sailings, and slowly relaxed booking and refund policies.

Even more, cruises were cancelled in Asia on Feb. 15, 2020, following the outbreak onboard the Diamond Princess in Japan,

Princess Cruises later reacted to the growing spread of the coronavirus in Asia and worldwide by pausing all of its ship operations for 60 days from March 12, 2020. On the same day, Celestyal Cruises also announced it was suspending operations.

AmaWaterways and Avalon Waterways (as well as its sister brands Globus, Cosmos and Monograms) said they were taking a voluntary pause in operations, too.

On March 13, 2020, the Canadian government announced it would be deterring the start of its cruise season (normally in April) to at least July. The ban was then extended twice, the last time until February 2021, which will make Canada cruise less for nearly a whole year.

Also on March 13, 2020, Windstar Cruises stated it would be suspending its sailings through April 30, 2020.

On March 14, 2020, CDC issued a No Sail Order and Suspension of Further Embarkation for cruise ships in waters subject to U.S. jurisdiction; the No Sail Order was extended on April 9, 2020, July 16, 2020, and Sept. 30, 2020, as cruise lines continued announcing more and more cancelled cruises affected by the order.

July 2020 saw the start of the long-awaited cruise resumptions in Europe with TUI Cruises starting on July 24, MSC on Aug. 16 onboard the Grandiosa and on Oct. 20 onboard the Magnifica, Costa Crociere on Sept. 6, and AIDA Cruises on Oct. 17. Mystic Cruises restarted sailing in early September under its Nicko brand. And in Asia, Dream Cruises’ World Dream has been operating short cruises to nowhere since Nov. 6.

Sadly, the pandemic claimed the lives of the following brands: Pullmantur Cruceros, Cruise & Maritime Voyages, FTI, Blount Small Ship Adventures, and Jalesh Cruises, while a record-high 13 ships were reduced to scrapping in 2020.

However, new brands – such as Swan Hellenic and Tradewind Voyages – were born in 2020, too.

And while safe returns demonstrated by TUI, MSC and other cruise lines give hope already, cruise lovers around the world are still patiently waiting for other brands to join. And, with the No Sail Order being replaced with the Conditional Framework in late 2020, it looks like these times may be just around the corner.

CARNIVAL EXTENDS SUSPENSION AND PUSHES BACK MARDI GRAS LAUNCH

The launch of Carnival Cruise Line’s new ship Mardi Gras has been pushed back a month after the company further extended its suspension of sailings.

The vessel will now begin operating from Port Canaveral from 29 May – amended from 24 April.

 

Carnival has now cancelled all US departures through to 30 April and all Australian operations until 19 May.

 

The line has also has axed European itineraries for Carnival Legend which were due to begin in May and operate through to 31 October.

 

Booked guests and travel agents are being notified directly of the cancellations about taking a future cruise credit and onboard credit package or a full refund.

 

Carnival president Christine Duffy said: “Our guests and travel agent partners continue to express their loyalty to Carnival and their desire to get back on our ships as soon as they can, and we are heartened by the booking demand and activity we continue to see.

 

“We are certainly committed to welcoming them back as quickly as possible, but unfortunately we have determined it’s going to take a while longer, and the situation in Europe will also impact Mardi Gras’ departure to the U.S., and Carnival Legend’s itineraries in Europe.”

 

Meanwhile, Carnival Corporation’s Italian brand Costa has announced plans to resume operations on 13 March.

 

Costa said current Covid restrictions do not allow guests to “enjoy an adequate on-shore experience and the ability to fully explore the itinerary’s destinations".

Pacific Princess Sold as Another Ship Leaves Carnival Corp. Fleet

Princess Cruise today announced the sale of Pacific Princess to an undisclosed buyer. The 670-guest ship was the smallest in the current Princess fleet.

The company said the sale of the cruise ship is in line with parent company Carnival Corporation’s plan to accelerate the removal of less efficient ships from its fleet, according to a statement.

The Pacific Princess first joined the cruise line’s fleet in 2002, and originally entered service in 1999 as R3 for Renaissance Cruises. 

The Pacific Princess sailed more than 1.6 million nautical miles and 11 world cruises. 

“Pacific Princess holds so many memories and cherished experiences to all who sailed upon her,” said Jan Swartz, Princess Cruises president. “Pacific Princess offered a traditional style of cruising to unique destinations. While it’s difficult to say goodbye to our ‘Love Boat,’ our World Cruise and exotic itineraries continue onboard our Medallion Class-enabled Island Princess and Coral Princess, featuring the best Wi-Fi at sea, allowing guests to keep in touch with loved ones and share vacation memories along the way.”

Port Everglades Moving Forward

Celebrity APEX refuelling in Port Everglades

“We are talking with the cruise lines on a consistent basis, there are weekly teleconferences. We are talking about what we are doing with our terminals and understanding what the obligations and criteria will be moving forward,” said Jonathan Daniels, who took over as the new CEO and port director at Port Everglades over the summer.

The 2020-2021 season for Port Everglades was poised to be a good one – the new Enchanted Princess was slated to call the port home, along with the Celebrity Apex and Odyssey of the Seas.

Looking at the new Celebrity Apex outside his office window, Daniels said he was working closely with the Royal Caribbean Group to understand what the terminal experience will look like.

“The difficult part will ultimately be determining where the line of demarcation is for accountability and responsibility,” Daniels said.

Guests will have staggered check-in times, basically appointments to board, and the terminals will need to be re-flowed a bit, meaning various zones for testing, isolation and more.

“Laboratories, testing, how does that translate into space in the terminal?” Daniels asked. “What happens if there is a positive case?”

Asking those questions is part of an unknown, without answers or guidance yet from the CDC.

Head Start

The port’s ferry service to the Bahamas launched for a two-week period in July, as it was not affected by the CDC’s “No Sail” order with a ship under 250 passengers aboard.

That meant Port Everglades had a trial run of sorts, installing plexiglass barriers, signage and hand sanitiser distribution stations in a terminal.

“We’ve been moving beyond that and integrating that into other terminals in anticipation of a restart of cruising,” Daniels said.

50,000

Pre COVID, a weekend in the winter could see upwards of 50,000 people move through Port Everglades on a single day with ships at all the port’s cruise berths.

With the business mounting a comeback in 2021, Daniels said the potential for growth beyond that would be in increasing the utilization of cruise terminals, especially for itineraries leaving mid-week, along with building up more summer business.

With a pivot toward closer-to-home and shorter cruises, the port is well-positioned in Florida to take advantage of that.

Excerpt from Cruise Industry News Quarterly Magazine: Winter 2020-2021

 

A trio of Cruise Ships Drydocks To Start 2021

The cruise ship drydock market will be hot for 2021, as operators push scheduled refits and class surveys forward ahead of returning to service

Work scopes are expected to be mandatory class surveys, inspections, and technical and safety maintenance, as the majority of big projects scheduled for 2020 and 2021 have been pushed back, Cruise Industry News reported in its 2021 Drydocking and Refurbishment Report.

Without passengers on the ship, the drydocking is when the cruise lines pounce to make any changes ranging from repair to hotel and facility upgrades.

Among the cruise ships that recently drydocked is the 1,778-guest Marella Explorer 2. She is staying at Damen in Amsterdam, Netherlands.

The Marella Explorer 2 has had her cabin ceilings and walls resprayed, bathrooms updated. Some of her suites got brand new solid wood floorings, and the Market Place got a contemporary resin floor.

The 2,600-passenger Sapphire Princess, which is operated by Princess Cruises, is currently drydocking at the Sembawang Shipyard in Singapore. The ship was previously scheduled for a drydock in April 2020, which got postponed after the start of the pandemic.

Finally, Dream Cruises’ 1,804-passenger Explorer Dream is not drydocking yet but will be between Feb. 19 and 25. The works will take place in Kaohsiung, Taiwan.

Carnival CEO Sells Company Stock

Arnold Donald, president and CEO of Carnival Corporation, sold 62,639 company shares on Tuesday at a price of $21.12 for proceeds of $1,322,935, according to an SEC filing. 

While the timing was less than ideal as the company remains out of service, the transaction was relatively routine.

Donald sold Carnival shares in mid-January in 2020, although at a much higher per-share price before the onset of the COVID-19 pandemic.

Cabezas: ‘Azamara Sale is a Win-Win-Win’

The Chief Operating Officer of Azamara, Carol Cabezas, has explained the sale of Azamara to a private equity firm, Sycamore Partners, with increasing the value of the cruise line’s product and driving the brand forward.

“Sycamore Partners, which has invested in many upscale consumer brands, is known for identifying great brands that need flexible funding to grow and succeed,” Cabezas said in a video address published on the brand’s official website.

“Sycamore’s strategy is to partner with existing management to nurture companies for growth and invest in upscale companies. The priority is to increase the value of our product. So, it's a win-win-win,” she added.

This comes a couple of hours since Royal Caribbean Group announced it has entered into a definitive agreement to sell its Azamara brand to Sycamore Partners in an all-cash carve-out transaction for $201 million, “subject to certain adjustments and closing conditions.”

The sale is expected to close in the first quarter of 2021, Cabezas said, after the cruise line receives all the normal regulatory approvals.

The transition will take a couple of months with the help of the Royal Caribbean Group.

According to Cabezas, nothing is currently expected to change for Azamara’s customers.

“There is no impact on your current bookings, future cruise credits, refunds or the availability of your travel advisor. Also, our website and care centre agents remain open for business, and I encourage you to start planning your next cruise with us,” she said, before adding that that the entire team will stay with Azamara, including customer care staff and crew.

“We commit to keeping the brand elements that make us Azamara, your brand of choice with immersive experiences that elevate vacation to lifestyle and superior service throughout the journey. With Sycamore, we intend to rapidly expand these to offer more destinations and portfolio choices at every step along the way. We're only going to get better,” Cabezas stated.

Azamara will adopt the same health and safety protocols as the Royal Caribbean Group, Cabezas said in a statement. These were developed by a group of public health experts at the Healthy Sail Panel.

Royal Caribbean To Sell Azamara Brand To Sycamore Partners

Azamara Quest.

Royal Caribbean Group today announced it has entered into a definitive agreement to sell its Azamara brand to Sycamore Partners, a private equity firm specializing in consumer, retail and distribution investments, in an all-cash carve-out transaction for $201 million, subject to certain adjustments and closing conditions.

Sycamore Partners will acquire the entire Azamara brand, including its three-ship fleet and associated intellectual property. The transaction is subject to customary conditions and is expected to close in the first quarter of 2021. Royal Caribbean Group noted the transaction allows it to focus on expanding its Royal Caribbean International, Celebrity Cruises and Silversea brands.

"Our strategy has evolved into placing more of our resources behind three global brands, Royal Caribbean International, Celebrity Cruises and Silversea, and working to grow them as we emerge from this unprecedented period," said Richard D. Fain, Chairman and Chief Executive Officer of Royal Caribbean Group. "Even so, Azamara remains a strong brand with its own tremendous potential for growth, and Sycamore's track record demonstrates that they will be good stewards of what the Azamara team has built over the past 13 years."

"We are pleased that Royal Caribbean Group has entrusted Sycamore to support Azamara in its next phase of growth," said Stefan Kaluzny, Managing Director of Sycamore Partners. "We are excited to partner with the Azamara team and build on their many years of success serving the brand's loyal customers. We believe Azamara will remain a top choice for discerning travellers as the cruising industry recovers over time."

Azamara's value proposition and operations will remain consistent under the new arrangement, and Royal Caribbean Group will work in close collaboration on a seamless transition for Azamara employees, customers and other stakeholders. In conjunction with the transaction, Azamara Chief Operating Officer Carol Cabezas has been appointed President of the brand.

The transaction will result in a one-time, non-cash impairment charge of approximately $170 million. The sale of Azamara is not expected to have a material impact on the Royal Caribbean Group's future financial results. Perella Weinberg Partners LP served as financial advisor to Royal Caribbean Group and  Freshfields Bruckhaus Deringer LLP provided legal counsel. Kirkland & Ellis LLP provided legal advice to Sycamore Partners.

Virgin Goes with Bipolar Ionization

Scarlet Lady.

“HVAC is one of the most important systems aboard a cruise ship. To that end, we designed our ship based on industry best practices, working with Fincantieri and HVAC engineers. We are trading off energy consumption for passenger comfort, quality, and safety,” Andy Schwalb, chief marine and technology for Virgin Voyages, told Cruise Industry News.

“So, instead of building the most efficient air-conditioning system possible, we built the best air circulation system possible for the comfort of our guests and crew,” he added.

Aboard the Scarlet Lady, each public space has its own air-handling system, designed and optimized for each space.

“We are constantly putting fresh air into public spaces and cabins. While other ships may pump in the fresh air too, the question is how often that air is exchanged. Our system is smart and adjusts according to how many people are in the room. So, the air may be exchanged every couple of minutes or every five to seven minutes. It can go faster or slower.

“Some large spaces also have cooling coils that help keep the air cool, but we are not recirculating air.

“We also change the air in every cabin every few minutes. Each cabin has its own cooling unit, and there is no cross-contamination between cabins.”

“There are many ways to clean the air,” Schwalb said. “The most basic is to move fresh air through a filter and suck out the old air. That works up to a point, depending on how often the air is exchanged and how big or small the particles are that go into the filters. Some companies have gone to MERV 13 filters, which have a finer mesh, and some are putting UV lamps in their air handlers.

“We have chosen a different route, covering 100 per cent of the ship with bipolar ionization.”

Schwalb explained how it works: “The fresh air comes into the space ionized with positively and negatively charged ions. They are attracted to particulate matter – pathogens, allergens, bacteria dust – and attach themselves. By doing so, they destroy the pathogens by stripping the hydrogen atom and make them bigger and heavier, which means the filters can better trap them, they are no longer able to attach themselves to people’s lungs, and they also fall to the floor.

“99.92 per cent of viruses are killed instantaneously.”

In-door air quality, in general, is a problem, according to Schwalb, not just on cruise ships. Any building, any enclosed space, has challenges such as norovirus and influenza, for example, and the ionization takes care of all of that.

“In addition, we are also upping our filtration to MERV 13 where it makes sense,” he added. “We are doing absolutely everything that is possible. First of all, we want to keep everybody safe and healthy; and secondly, we think this will improve the (cruise) experience over the long run.”

Excerpt from Cruise Industry News Quarterly Magazine: Winter 2020-2021

The Alang Fleet: These Five Ships Will Be Scrapped in India

Five cruise ships are in the process of being scrapped in India following the COVID-19 pandemic which has accelerated the retirement of cruise ships.

Karnika
Capacity: 1,578
Tonnage: 70,130
Year built: 1990
Last Cruise Line: Jalesh Cruises

A victim of the COVID-19 pandemic, Jalesh Cruises was shut down by its owners in October. As a consequence, Karnika, the company’s sole vessel, was sold for scrap in November.

---

Ocean Dream
Capacity: 1,022
Tonnage: 36,674
Year built: 1982
Last Cruise Line: Peace Boat

The Ocean Dream was beached on New Year’s Eve, ending its 38-year seagoing career. Previously operated by the Peace Boat Organization, the vessel was replaced by the newer and larger Pacific World, the former Sun Princess. 

---

Marco Polo 
Capacity: 800
Tonnage: 22,080
Year built: 1965
Last Cruise Line: Cruise & Maritime

After Cruise & Maritime Voyages went into administration, the Marco Polo was auctioned in October. The new owners planned to use the ship on charter deals, looking into options that even included transforming it into a permanent hotel. None of the deal materialized.

---

Grand Celebration 
Capacity: 1,800
Tonnage: 47,262
Year built: 1987
Last Cruise Line: Bahamas Paradise
Operating for Bahamas Paradise since 2015, the Grand Celebration was sold in November. While the cruise line initially denied the sale, the 1987-built vessel set course to India, arriving in Alang on January 11.   

---

Satoshi (ex-Pacific Dawn)
Capacity: 1,590
Tonnage: 70,000
Year built: 1991
Last Cruise Line: P&O Australia

Sold by P&O Australia in October, the former Pacific Dawn was set to become a floating tech hub off the coast of Panama. The plan, however, fell through in December and the ship, now named Satoshi, was sold to Indian breakers.  

How to Scrap a Cruise Ship and What They Go For

As many as 13 cruise ships were reduced to scrap in 2020 – more than in the five preceding years combined.

The number of cruise vessels removed from the worldwide fleet in 2020 was so high that scrap yards have been struggling to keep up with the demand – especially when the vessels are registered in the European Union and, therefore, have to comply with stricter regulations.

According to Vagelis Chatziginnis, a senior trader at GMS Leadership (one such company that organizes ship scrapping), most of the vessel scrapping in 2020 took place in Turkey.

“We have seen a couple of units being sold for recycling in India already, but a couple of units is nothing compared to the numbers we've seen in Turkey so far,” Chatziginnis told Cruise Industry News. “Some of these larger cruise ships (are) being laid up in locations like Greece, for example, until more spaces are available to digest in Turkey.”

Scrap Values

Chatziginnis said the average scrap value in India is $400 per ton. In Turkey, the value is considerably less at $280-300 per ton. At the height of the pandemic, however, those values could be as low as $90 for EU-flagged ships.

“When the pandemic was at its peak – let's say around summer 2020 – and the first cruise ships started being scrapped, some of them were even getting double digits, like hardly $100 per ton, maybe $90,” he said.

The value can depend on various factors, such as the country where the facilities are located or whether the cruise vessel was registered in an EU country.

“If the vessel has to be recycled in compliance with a regulation of the European Union, you would probably be looking in Turkey for something like $200 per ton equivalent because of their very limited capacity of the yards, which are compliant with European regulations,” Chatziginnis explained.

“In the U.S., you have one facility that is approved in the European Union. So, the vessel could be recycled there, but it's a totally different market. You would probably be looking at something like $80 per ton, for example,” he added.

However, Chatziginnis said that steel prices globally have increased dramatically over the past few months and residual value has increased by nearly $100 per ton in each of the major ship recycling counties.

Process Organization

A role of a company like GMS is to organize the entire recycling process.

“So, ultimately the ownership and responsibility of the vessel would be transferred to the owning entity that would be buying the vessel. The cruise line has nothing to do anymore with the vessel. And thereafter, we are arranging the transportation from point A to point B,” Chatziginnis said.

“Let's say you're taking delivery of a cruise vessel and, let's say, from Piraeus.

So, from Piraeus in Greece, we put our crew on board, and we arrange for the unit to go to Turkey. We are (then) sending the unit to the recycling facility, and the recycling facility has to pay for purchasing the vessel to recycle in accordance with the standards that we're going to agree on,” he added.

GMS also vets the requirements of the original owner for regulations that need to be complied with and then guides them with how to proceed with the scraping in the best interests of the cruise industry.

“It sounds like it’s simple, but it isn’t always. Especially when you have to respect other regulations (like the EU ones),” Chatziginnis said.

What Holds

A record-breaking 46 cruise vessels could enter service in 2021: 30 ships that are set to debut and 16 more ships that were delivered in 2020 but have yet to enter revenue service.

With that many ships entering the scene, cruise lines have to be wary not to oversupply the market, said VesselsValue, a maritime data provider.

“A quick and confident return of demand is paramount for the industry to rebound; otherwise, we should expect to see further delays and removals in an attempt to balance things out,” VesselsValue’s cargo analyst, Guy Cooper, told Cruise Industry News.

The other sad consequence of the pandemic is that many relatively young cruise ships are getting scrapped.

“Look at the Marco Polo – it is a 55-year-old vessel … It has been operating for, like, more than 50 years now… And now, all the other major lines are scrapping all the vessels that were built in the 1990s and the 1980s. This is quite young for the normal industry in cruising in our understanding,” said Chatziginnis.

“I doubt that in the last decade, at least, or maybe even more than this, we have seen so many cruise ships being recycled in a year,” he added.

Holland America Line Extends Pause in Cruise Operations

As Holland America Line continues to prepare and develop its plans to meet the Framework for Conditional Sailing Order issued by the U.S. Centers for Disease Control and Prevention (CDC), the company announced on Wednesday afternoon it is extending its pause of cruise operations for all departures through April 30, 2021.

This includes Alaska, Mexican Riviera, Pacific Coast, Caribbean, Mediterranean and Canada/New England departures.

The line also will cancel all Alaska cruises through mid-May, Alaska departures on three ships through early June, any Land+Sea Journeys connected with cancelled Alaska sailings, Mediterranean cruises through early June and Zaandam’s Canada/New England itineraries through August.

Cruises impacted by this pause in operation are:

• All cruise departures through April 30, 2021.
• Alaska: Eurodam and Oosterdam through the first week of June (roundtrip from Seattle); Koningsdam through mid-May (roundtrip from Vancouver, British Columbia, Canada); Nieuw Amsterdam and Noordam through mid-May (roundtrip Vancouver and between Vancouver and Whittier, Alaska); and Zuiderdam through early June (roundtrip from Vancouver).
• Mediterranean: Volendam cruises through early June (between Venice and Civitavecchia [Rome], Italy); Westerdam through early June (roundtrip from Venice or between Venice and Piraeus [Athens], Greece).
• Canada/New England: Zaandam cruises through August (between Boston, Massachusetts, and Montreal, Quebec, Canada).

Guests and their travel agents are being notified of the cancellations and options for Future Cruise Credits (FCC) and rebooking.