Britain To Build A ‘National Flagship’ To Promote Maritime Trade

A mocked-up image of what the new flagship might look like. Photo via Downing Street

Britain is to build a new flagship to promote its business and trade interests around the world, the government said on Saturday, in a move it said would also boost the ailing shipbuilding industry.

Britain said the ship, once built, would host high-level trade negotiations and trade shows, and the cost of the project would be confirmed once manufacturing contracts were tendered.

“This new national flagship will be the first vessel of its kind in the world, reflecting the UK’s burgeoning status as a great, independent maritime trading nation,” Prime Minister Boris Johnson said.

The government said it would be the first national flagship since HMY (Her Majesty’s Yacht) Britannia was decommissioned in 1997.

A flagship to promote global trade has long been advocated by proponents of Brexit, who highlight the possibilities for new free trade agreements now Britain has left the European Union.

Critics, however, point to disruption to trade with the EU, Britain’s biggest export market, following the country’s departure from the EU’s orbit at the start of the year. There has also been an impact on intra-UK trade from Great Britain to Northern Ireland.

The government said the name of the ship would be announced in due course. The Sunday Telegraph reported this month it would be named after Queen Elizabeth’s late husband Prince Philip.

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.

Carnival Corp. 2020 Outlook

Carnival Corporation provided adjusted earnings guidance for 2020 on today’s Q4 and year-end earnings call from $4.30 to $4.60 per share, compared to 2019 adjusted earnings of $4.40 per share.

Carnival President and CEO Arnold Donald said that he expects cruise revenues to be up approximately 5 percent on capacity growth year-over-year of 6.6 percent.

At this point, he said, the company is entering 2020 with a record booked occupancy position but at slightly lower prices.

Donald noted the headwinds Carnival has faced this year, some of which will continue into 2020, including the impact of Cuba being off limits to cruise calls, events in the Arabian Gulf, Hurricane Dorian, unscheduled drydocks and ship delays, compounded by a decline in market demand in Continental Europe, particularly Germany, while Southern Europe is also challenging.

Noting these as “unusual events,” Donald said they had had a $0.23 negative impact on 2019 earnings.

In order to improve the market situation and accelerate demand growth in Southern Europe, Donald said that two older ships are being removed from the Costa fleet in 2020, following the recent introduction of the new Costa Smeralda. He said the new ship is much more efficient than the ships being removed.

In the UK, Carnival has been able to grow revenue yield despite Brexit, and Donald noted that P&O Cruises’s New Iona is booking at a significant premium over other ships on comparable itineraries.

In North America, the Caribbean is strong and so is Alaska. However, Alaska is seeing what he called an over-concentration of capacity and will need to absorb another industrywide capacity increase of 10 percent in 2020, on top of a 15 percent capacity increase in 2019.

As for China, Donald said Carnival will focus on its new joint venture cruise line. Meanwhile, he said, Costa had a good year in China in 2019 and looks forward to another good year in 2020, with more direct business, but is also happy with its charter model.

Carnival will essentially have six new ships in six different markets for the full year in 2020, starting with the Carnival Panorama, which just entered service on the West Cost, the Costa Smeralda in Southern Europe; P&O’s Iona in the UK; the Enchanted Princess in Europe and North America; the Mardi Gras in Florida; and the Costa Firenze in China.

According to Donald, Carnival is also accelerating marketing and media spend in all of its key markets to drive demand in 2020.

Royal Caribbean boss moves to dispel UK cruise concerns

Independence of the Seas in Southampton photo by Dave Jones.

Royal Caribbean Cruises’ boss has moved to dispel concerns that the UK cruise industry faces a bleak future amid ongoing Brexit uncertainty.

Royal Caribbean International last week cancelled Independence of the Seas’ 2020 UK season and announced the ship would operate out of Florida instead to meet the demand for Perfect Day in CocoCay, the line’s new private island in the Bahamas.

The decision left some agents to question whether a soft UK market due to Brexit had prompted the decision – rather than a soaring interest in the $250 million private island which will be served by 11 Royal ships this year.

Speaking on Celebrity Edge’s maiden ex-UK sailing from Southampton on Monday, Richard Fain, Royal Caribbean Cruises’ chairman and chief executive, said: “We are here for the long term, we are not here for the current climate.

“There is no doubt that the UK market will do very well in the long-term and it continues to be our second largest market. We have been here when it has gone through cycles. The cruise industry is not fickle – it is solid and consistent.”

Fain admitted there was “a modicum of uncertainty” in the UK market as confusion continued over when Britain would leave the EU.

But he added that Royal Caribbean International had to move more capacity to North America due to “an extraordinary surge in interest” in Perfect Day, which launched just over a week ago.

“This is a wonderful problem to have,” he said, adding: “That we don’t have enough ships to satisfy the [customer] demand.”

Plans to expand the existing Perfect Day site were being looked at, said Fain. Only a third of the island is currently being used by Royal Caribbean to accommodate passengers.

Fain also added: “We look at the UK market as more than just ships sailing out of the UK. One of the reasons why the UK market has been so attractive to us is Brits are amazing travellers.”

Sailings in the eastern Mediterranean represented “a great opportunity” for Britons looking for fly-cruise options away from the UK, Fain said.

P&O Cruises issues Brexit reassurance

P&O Cruises issues Brexit reassurance

P&O Cruises has issued a series of promises to its passengers in a bid to ease any fears over Brexit.

As uncertainty mounts over the UK leaving the EU, the line reminded passengers they will avoid foreign currency fluctuations due to onboard spending being in pound sterling.

P&O Cruises also reminded passengers that all cruises with the line will be protected by Atol and Abta.

P&O Cruises president Paul Ludlow said: “We want to reassure our guests that whatever is happening in the world of politics, their holiday and peace of mind is of the utmost important to us.

“Our Brexit promise is that no matter what the future brings, our guests can rest assured when booking a P&O Cruises holiday as they will always pay in pounds sterling in advance and can take advantage of a low deposit to secure their holiday.

He added: “Also, a P&O Cruises holiday offers unbeatable value as so much is included as standard including meals, entertainment, children’s clubs, flights and taxes.

“With sailings directly from Southampton and by choosing shore excursions in advance, our guests can explore Europe without the need for euros.

“In addition, the currency on the ships is pounds which covers all shopping, dining, drinks, indulgent treatments in the spa and a range of shops with favourite British jewellery, clothing and cosmetic brands. We also have the protection of both Atol and Abta.

“With over 180 years of P&O history and expertise, we guarantee to manage any potential impact on holiday plans and help our customers sail through Brexit and onto their next cruise.”

ITT 2017: MSC Cruises chief raises fears over Brexit and shipping regulation

ITT 2017: MSC Cruises chief raises fears over Brexit and shipping regulation

MSC Cruises boss Pierfrancesco Vago says the operator is working closely with the UK government on Brexit amid fears over implications for global maritime regulation.

Speaking in the line’s spiritual home of Sorrento in Italy at this week’s annual ITT conference, the operator’s executive chairman said the entire sector is regulated according to British maritime law.

Vago questioned whether there would be time for bilateral deals to be done with every other country in the world and said Brexit could make the current British-based regulatory system invalid.

MSC and other cruise lines are working through the UK Chamber of Shipping with the UK government on what Brexit means for shipping.

“We are all very much engaged, we are very much part of the process,” he said.

“It’s very complex. Sometimes there are questions that can’t be answered so it’s very important we are part of the process.

“The common denominator for shipping in general is the British law, that’s what regulates shipping. Britain from the legal side may have to enter bilateral agreements with everyone else, that makes the shipping law system invalid.

“If we have all the lawyers in the world working to make bilateral agreements to make British law available to the world, two years will not be enough.”

Vago said Brexit could also be a challenge to travel in general due to visa restrictions and border control. “The freedom of movement is everything,” he said. “It’s how everything should work.”

Vago said he was very proud that the growth seen in the cruise sector in recent years has created so many jobs for people from around the world. Globally the sectors sustains nearly one million employees including 360,000 in Europe and 73,000 in the UK. MSC has switched its technical base to the UK to take advantage of British expertise where today it directly employs 250 people.

“This is an industry that creates jobs. That makes me very proud. That’s what Europe needs, that’s what the world needs,” Vago said.

He added the ultimate aim for the next generation of cruise ships was to for them to have zero impact on the environment. The lines recently announced next class of ship, which will be the world’s largest, will be powered by LNG.

Royal Caribbean chief warns Brexit could increase cruise prices

Royal Caribbean chief warns Brexit could increase cruise prices

by Natasha Salmon  May 26th 2017, 17:36
Gallery: Clia Conference 2017

Brexit could affect freedom of movement and prices of cruises, Clia chairman Stuart Leven has said.

Speaking at the annual Clia Conference in Southampton Leven, Royal Caribbean International’s vice president for Europe, Middle East and Africa, said Brexit would impact cruise in three ways.

“Firstly it could impact the freedom of our guests and passengers to cross borders, the second is freedom of our staff and our crew to cross borders.

“The third is the impact it has in what we charge because there is the customs union that allows us to take goods on ships from one country to the next without charge or taxation. And they are the three main areas which could see change due to Brexit.”

Leven said the main risk from the changes by Brexit will also come when customers book their holidays during the process until 2019 but it was down to agents to maintain confidence in cruise and travel market.

“At some point next year people will be booking their holidays for 2019 and in doing so there will be a lot of uncertainty around whether people will need visas to go to Europe.

“You as travel agents need to reassure them that it is business as usual, it is alright and make sure we don’t get a short turnover on the bookings which none of us want.”

In his role as chairman for Clia in UK and Ireland Leven said he was working with the Abta committee in making sure ‘the cruise industry is represented’ in government negotiations.