Visit viking.com , call 1-800-2-VIKING or see your Travel Agent M ODER N I Z I N G M ISSISSIPPI E X PL OR AT IO N Only with Viking, the small ship experts. CST: #2052644-40 Make your dreams come true in 2022 and be among the first to explore America’s mightiest of waterways. CruiseBusiness.com REVIEWING CRUISE BUSINESS GLOBALLY Magazine SPRING 2020 NORTH EUROPEAN PORTS Development projects continue JAMAICA The Port Authority of Jamaica’s newly built Port Royal Cruise Port received its inaugural call by Marella Cruises’ Marella Discovery 2 in January 2020. Port Royal joins Falmouth, Montego Bay, Ocho Rios and Port Antonio to strengthen port-ofcall options in Jamaica and is fitted with a unique SeaWalk – a removable and reusable floating quay, which requires minimal space to install. Royal Caribbean turns 50 Covid-19 sinks industry financials Are residential ships making a comeback? 425x297%20kansi .indd 1 425x297%20kansi .indd 1 9.6.2020 7.08 9.6.2020 7.08
twitter.com/SMMfair #SMMfair youtube.com/SMMfair smm-hamburg.com/news linkedin.com/company/smmfair facebook.com/SMMfair smm-hamburg.com the leading international maritime trade fair driving the maritime transition 2 – 5 feb 2021 hamburg SMM fuels change in the maritime industry by bringing together its most influential players and presenting solutions that make shipping greener, smarter and safer. Be part of it and see what’s technologically possible, connect with peers and get fresh impetus for your business: • 2,200+ exhibitors from the entire maritime value chain • 50,000 industry professionals from 120+ countries • Top-notch conferences and first-class networking events see what make s SMM the #1 smm-ha mburg.c om/trail er E X P L O R AT I O N OTHER VESSELS www.sunstoneships.com Wherever Your Destination, SunStone Can Take You There. E X P L O R AT I O N As you explore farther and farther into the frontier, we’re there to support you. Our clients and partners depend on SunStone’s innovation to facilitate their ongoing exploration and expansion. Our INFINITY class vessels are a leap forward in technology, design, safety and cost. Join us as expedition cruising enters the INFINITY-era. M/V OCEAN ATLANTIC M/V SEA SPIRIT M/V GREG MORTIMER M/V OCEAN DIAMOND M/V OCEAN ENDEAVOUR M/V QUEST M/V OCEAN NOVA IS THE ENGINE THAT DRIVES INNOVATION. — EDITH WIDDER, O CEANO GRAPHER — Follow The Sun. M/V OCEAN ADVENTURER Our INFINITY class vessels are a leap forward in technology, design, safety and cost. Join us as expedition cruising enters the INFINITY-era. OCEAN DISCOVERER Delivery September 2022 OCEAN EXPLORER/ODYSSEY Delivery Jan. 2021/Mar. 2022 INFINITY-CLASS VESSELS | OCEAN VICTORY, Delivery October 2020 OCEAN ALBATROS Delivery October 2022 OCEAN ALBATROS AURORA II Delivery September 2021 AURORA II Sunstone Ships.indd 1 10/01/2020 10:18 425x297%20kansi .indd 2 425x297%20kansi .indd 2 9.6.2020 7.08 9.6.2020 7.08
The leading cruise port in the Mediterranean C M Y CM MY CY CMY K 2020_PBCN_CRUISE•A4.pdf 2 20/1/20 16:24 2-3-4-5-.indd 3 2-3-4-5-.indd 3 9.6.2020 6.45 9.6.2020 6.45
wulffentre.com | sales@wulffentre.com | +358 10 6335 500 As an company, we are driven by customer satisfaction and our processes are streamlined to provide you the best service, quality and experience possible. Wulff Entre is a member of the UN Global Compact and is committed to supporting and implementing the ten fundamental principles Let’s Get Connected Again! Wulff Entre is a turnkey trade show and event service house. WE help our clients to build networks at exhibitions by providing individual stand design completed with professional production services. We have a solution for every budget! Wulff Entre is specialized in marine and cruise industry events. Let us propose you a unique design for your next show! Call us today: +358 10 6335 500 Sales@wulffentre.com www.wulffentre.com WE will be at: Seatrade Cruise Global SMM Nor-Shipping Cruise Ship Interiors London Cruise & Ferry Global Expo Kormarine Louisana Intl WorkBoat Show Europort Marintec China Posidonia Asia Paci?c Maritime Sea Japan Sea Asia Electric & Hybrid Marine World Expo 6-7 .indd 2 6-7 .indd 2 9.6.2020 12.45 9.6.2020 12.45
CRUISEBUSINESS.COM MAGAZINE SPRING 2020 7 CONTENTS – SPRING 2020 Editor’s Commentary 8 Upfront 12 Royal Caribbean turns 50 16 Celebrity Apex gets ‘virtual’ delivery 26 Covid-19 sinks industry financials 30 Seven Seas Splendor delivers 34 Chat with Oceania Cruises´ 42 Riviera Captain and Chief Engineer Reliable pole-to-pole 45 connectivity powers Hondius Small is beautiful for 46 Fred. Olsen * Flying Clipper becomes 48 largest sailing ship Residential cruise ships 52 making a comeback? North European 56 port projects continue Road map 60 back to cruising can ferries show the way forward? Small line 63 announces post-Covid plans Viking expands on yet 64 another front * At the press time we learned the world’s largest square-rigged sailing vessel, built as Brodosplit 483, will be re-named, rebranded, and operated by the British cruise company Tradewind Voyages UK Ltd. The ownership of Brodosplit 483 remains with the wholly owned subsidiary of the DIV Group. wulffentre.com | sales@wulffentre.com | +358 10 6335 500 As an company, we are driven by customer satisfaction and our processes are streamlined to provide you the best service, quality and experience possible. Wulff Entre is a member of the UN Global Compact and is committed to supporting and implementing the ten fundamental principles Let’s Get Connected Again! Wulff Entre is a turnkey trade show and event service house. WE help our clients to build networks at exhibitions by providing individual stand design completed with professional production services. We have a solution for every budget! Wulff Entre is specialized in marine and cruise industry events. Let us propose you a unique design for your next show! Call us today: +358 10 6335 500 Sales@wulffentre.com www.wulffentre.com WE will be at: Seatrade Cruise Global SMM Nor-Shipping Cruise Ship Interiors London Cruise & Ferry Global Expo Kormarine Louisana Intl WorkBoat Show Europort Marintec China Posidonia Asia Paci?c Maritime Sea Japan Sea Asia Electric & Hybrid Marine World Expo 6-7 .indd 3 6-7 .indd 3 9.6.2020 12.46 9.6.2020 12.46
Editor Teijo Niemelä Publisher Cruise Media LLC Copy Editor M.T. Schwartzman Sales and Production Christer Gorschelnik Art Director Julle Järvinen, Julle Oy COMPANY ADDRESS Cruise Media LLC 209 N Queen Street Chestertown, MD 21620 USA Telephone +1-609-751-2344 E-mail cruisemediallc[a]gmail.com SALES OFFICE FINLAND ChrisGo Consulting Pahtankatu 10 as 10 FIN-21200 Raisio, Finland Telephone +358-440-159 554 E-mail christer.gorschelnik[a]kolumbus.fi SALES OFFICE USA Teijo Niemelä 209 N Queen Street Chestertown, MD 21620 USA Telephone +1-609-751-2344 cruisemediallc[a]gmail.com FEATURED CONTRIBUTOR Carolyn Spencer Brown, the award-winning Editor-in-Chief of Cruise Critic, has joined Cruise Media LLC as its first-ever Chief Content Strategist. Spencer Brown, who first begin covering cruise in the mid-1990s as a reporter for The Washington Post's travel section, led Cruise Critic through a transformation to industryleading coverage of the cruise industry, ultimately serving the website as Chief Content Strategist, focusing on partnerships with cruise and travel companies. PRINTED IN FINLAND – PUNAMUSTA OY, HELSINKI www.cruisebusinessmagazine.com W hen we entered into the new year, 2020, the global cruise business was preparing for a record-breaking year in terms of number of passengers, new ship introductions and expectations of record profits. The world had heard about a new virus emerging in Wuhan, China, but it still had little impact on business or leisure travel outside of China. Throughout January, cruise ships were still operating full with satisfied customers. Merely a month later the picture could not have been more different. It felt disorienting, changes so fast and furious, changes by the minute not hours, that it was like driving 65 miles per hour and colliding into a concrete wall. One by one cruise ships started to report infections of coronavirus, or Covid-19 – first in Asia, later in other parts of the world. Princess Cruises’ Diamond Princess became the first victim of the crisis in the cruise business. The ship faced a multi-week quarantine ordered by Japanese authorities and suddenly the cruise lines were facing their biggest challenge ever: Even when they were not allowed to call the shots. In the early days, Diamond Princess was not the only vessel facing health challenges. Another Princess vessel, Grand Princess reported Covid-19 infections while on a roundtrip voyage from San Francisco to Hawaii. Global news coverage of the tug of war between political authorities, state and local governments, and organizations like the Centers for Disease Control EDITOR’S COMMENTARY and Prevention (CDC) played out to near-constant television news coverage around the world. In early March, U.S. Vice President Mike Pence flew to Florida to meet the cruise line executives in Fort Lauderdale, presumably to discuss health protocols and other strategies that would help the industry adapt to the pandemic, which apparently came to not much when, on March 14, the CDC gave a No Sail Order for all cruise ships operating from U.S. ports. Days earlier, two cruise lines had already proactively issued their own 60-day no-sail orders; first, Viking and then Princess. These events set into motion a domino effect. C ruise lines decided to cancel voyages just as international air travel gradually stopped between countries and continents. Repatriating passengers and crew became a global challenge. Adding to the layers of difficulty, countries all over the world began closing ports to cruise ships, making it difficult to end sailings and disembark. For example, Holland America Line’s Zaandam had just departed for a South America cruise from Argentina to Chile when U.S. announced its No Sail Order. The disembarkation of passengers in the end of cruise in Chile became impossible. Holland America Line scrambled to find alternative port. Ultimately, Zaandam wound up sailing all the way back to Miami, via the Panama Canal, to get its passengers to the U.S., where it then arranged charter flights to get them home. CruiseBusiness.com Magazine 8 CRUISEBUSINESS.COM MAGAZINE SPRING 2020 Mobile Access VingCard Locks Elsafe Safes TrioVing Cylinders A trusted partner for the marine industry. Learn more today at assaabloyglobalsolutions.com/marine At ASSA ABLOY Global Solutions, innovation is nothing new. 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Marine system expertise Integrated system solutions raise your efficiency, sustainability and profitability. Our expertise in dual fuel and gas supply systems, optimized propulsion, exhaust after-treatment, and battery hybrid solutions enables your visions to succeed. www.man-es.com Your visions succeed 1812_13435_MAN_ES_Anzeige_SC_FourStroke_Image_reSe_ENG_210x297mm_ISO_V2.indd 1 13.12.18 14:44 Similar stories of extremely complex operations have been reported from all over the world. To find suitable solutions has required, and still does require in some cases, country's leaders to step up and use diplomatic skills. It's also asked the same from cruise line executives (complete coverage of all these events is found on cruisebusiness.com). And the drama still wasn't over. After repatriating passengers, cruise lines faced even bigger challenge: How to get their hardworking crew members back to their home countries. With even scarcer long-haul flight options, and borders closed as a result of the pandemic, cruise lines developed complex new strategies, using their own ships to take crew members home. This required a difficult logistical operation, where in many cases crew members were swapped between ships, via tenders, to the one that would cruise to the appropriate home country. Some headed to South Africa, then India, Indonesia and then Philippines; others traveled to the UK and then on to Central Europe. As CruiseBusiness.com goes to press in early June, all passengers have returned home, including the remaining eight aboard Phoenix Seereissen's Artania. And, too, most -though not by all means all -crew members have reached their home countries, where they potentially faced lengthy quarantines. In the Philand future cruise credits for six months (or more) in which every cruise is being cancelled. On this issue starting on page 30 we are looking at the finances of big three cruise lines. These, plus many smaller ones have now raised funds to allow them to survive roughly until next spring if operations will not re-start. (We are chronicling all of-the-moment changes; please continue to check cruisebusiness.com for breaking developments). Meanwhile, cruise ship builders have enjoyed record-breaking order books over the past few years with pre-pandemic order books extending to 2027. We'll see some retraction there, too. Meyer Werft's top executives issued a warning in mid-April, noting that additional new cruise ship orders cannot be expected for a few years and its shipyards needs to adjust its capacity to a new normal. Given the severity of the crisis, the lines will also seek to postpone deliveries and in order to avoid cancellations of orders, the Meyer Group, for one, will have to reduce its capacity. At Papenburg, this means cutting one large ship per year from the present output of two large and one smaller ship per year. Similarly, Meyer Turku shipyard has postponed its plans to deliver two large ships a year instead of one. On this issue we have tried to research as carefully as possible HOW TO FOLLOW US Twitter.com/cruisebusiness facebook.com/CruiseBusinessUSA instagram.com/niemelateijo lipines, for instance, many natives had to quarantine for 14 days before traveling home. The repatriation of hotel crew members means also, that cruise lines are mentally preparing for longer lay ups. As we close this issue, cruise lines have scotched Alaska and New England/Canada cruise seasons. One smaller line, Victory Cruises, has already announced it will not sail at all in 2020. As the lay ups will be longer, the ships will be kept “cold” which means that there will be just deck and engine crews onboard. Unfortunately, this potentially makes the start of operations not only difficult but also slower as the crew members have to be flown back to the cruise ships – and then the key question gets asked all over again. When will borders reopen and what is availability of long-haul flights? N aturally, an entire halt of cruise operations has resulted in absolutely no revenue. Expenses continue, even after most lines have laid off and furloughed large percentages of staff, both onshore and at headquarters. And not the least of the challenges is the never-before need to provide refunds Teijo Niemelä June 2020 how the cruise business could start again. Cruise lines have provided new guidelines for safer operations. Just before the press time our correspondent John Pagni traveled from Helsinki to Tallinn onboard the fast ferry Megastar. He gives first glimpse of how passenger service and operations may look like after the services starts again. We also have looked at one cruise line, namely Bahamas Paradise Cruise Line, how they will operate after CDC lifts off the no sail order. n 10 CRUISEBUSINESS.COM MAGAZINE SPRING 2020 “When we talk about how the industry is coming back, I feel we go one step ahead, and then two steps back.” – Teijo Niemela told the Miami Herald 8-11 .indd 4 8-11 .indd 4 9.6.2020 13.24 9.6.2020 13.24
Marine system expertise Integrated system solutions raise your efficiency, sustainability and profitability. Our expertise in dual fuel and gas supply systems, optimized propulsion, exhaust after-treatment, and battery hybrid solutions enables your visions to succeed. www.man-es.com Your visions succeed 1812_13435_MAN_ES_Anzeige_SC_FourStroke_Image_reSe_ENG_210x297mm_ISO_V2.indd 1 13.12.18 14:44 HOW TO FOLLOW US Twitter.com/cruisebusiness facebook.com/CruiseBusinessUSA instagram.com/niemelateijo 8-11 .indd 5 8-11 .indd 5 9.6.2020 13.24 9.6.2020 13.24
? 12 CRUISEBUSINESS.COM MAGAZINE SPRING 2020 UPFRONT Regent Seven Seas Cruises was the last North American cruise line to celebrate the naming of a new vessel, the 55,254 gross ton and 750passenger Seven Seas Splendor, before the onset of the Covid-19 pandemic. Exclusive guests – including travel partners, local community leaders, media and luxury travelers – were invited to a private black-tie evening ceremony held February 24 onboard the all-suite, all-balcony luxury cruise ship. In addition, more than 35,000 people watched the festivities broadcast live on Facebook and YouTube. Christened by famous supermodel Christie Brinkley, the Splendor is the fifth unit in the RSSC fleet. Celebrity Cruises made maritime history on March7, when an all-female bridge and onboard leadership team set sail commemorating International Women’s Day. Led by Captain Kate McCue – the first American female cruise ship captain – who was accompanied by 26 other women representing 16 different countries, the Celebrity Edge sailed out of Port Everglades to begin a 7-night Caribbean journey. Captain Cheryl Phipps, currently a Port Everglades pilot and one of only a few female pilots in the country, conned the ship out to sea. Around the world, only 2% of the world’s mariners are women. Celebrity Cruises has made it a priority to #BRIDGEthegap, leading the maritime industry into a more diverse future and increasing the number of women on its bridge teams from 3% to nearly 25% over the last few years. Assembly work started on February 1 at the Meyer Turku shipyard on the hull of the 185,010 gross ton Costa Toscana, the second ship in the Costa Cruises fleet to be powered by liquefied natural gas (LNG) for lower emissions. Currently, Meyer Turku is outfitting Carnival Cruise Line’s Mardi Gras, which shares many characteristics of the Costa Smeralda and Costa Toscana. Due to Covid-19, there are no confirmed delivery dates for the Mardi Gras or Costa Toscana. From left Meyer’s Project Manager Kalle Hyytiä and Costa’s President Neil Palomba. 12-15 .indd 2 12-15 .indd 2 8.6.2020 7.51 8.6.2020 7.51
CRUISEBUSINESS.COM MAGAZINE WINTER 2018/2019 19 The Scarlet Lady – the first of four ships that Sir Richard Branson’s Virgin Voyages has ordered from Italy’s Fincantieri – was delivered in mid-February at the Sestri Ponente shipyard in Genoa. Attending the ceremony were President and CEO of Virgin Voyages Tom McAlpin (INSET), Chairman of Fincantieri Giampiero Massolo and CEO Giuseppe Bono. The Scarlet Lady registers about 110,000 gross tons, is 278 meters long and 38 meters wide. Unfortunately, the Scarlet Lady was not able to begin service before the U.S. “No Sail Order” took effect in March. At press time, a new inaugural date had been set for October 15. UPFRONT ? Brodosplit shipyard in Croatia launched the 128meter/200-guest Ultramarine in a ceremony on May 16. The 9,000 gross ton expedition vessel will be delivered to Quark Expeditions, which is part of the Travelopia Group. This is the first time that Brodosplit has constructed a ship for a U.S. shipowner. CRUISEBUSINESS.COM MAGAZINE SPRING 2020 13 12-15 .indd 3 12-15 .indd 3 8.6.2020 7.51 8.6.2020 7.51
12 CRUISEBUSINESS.COM MAGAZINE WINTER 2018/2019 UPFRONT Helsinki Shipyard started production of the first of two 157-passenger luxury expedition cruise vessels on April 27. Steel cutting took place in safe conditions and as scheduled despite the Covid-19 pandemic. Known only by the project name Vega, these luxury expedition cruise vessels – which were ordered by the Russian shipowner Vodohod in summer 2019 – are intended to operate both in the Arctic and Antarctic waters during winter and summer, as well as in tropical waters during the spring and autumn seasons. Deliveries are expected in 2021 and 2022. Production of Tallink’s newbuilding the MyStar began on April 6 at Rauma Marine Constructions Shipyard in Rauma, Finland. RMC’s President and CEO Jyrki Heinimaa and Project Manager Marko Paloluoto started the process with the traditional steel cutting. Tallink’s new car and passenger ferry will be the largest ship built at the facility yet. Making use of cuttingedge technology and innovative solutions, the ship will be energy efficient and have a dual-fuel solution on its MAN engines capable of using LNG. The vessel’s advanced, certified electric propulsion system allows energy-efficient operation in all circumstances at speeds up to 27 knots. 14 CRUISEBUSINESS.COM MAGAZINE SPRING 2020 UPFRONT 12-15 .indd 4 12-15 .indd 4 8.6.2020 7.51 8.6.2020 7.51
CRUISEBUSINESS.COM MAGAZINE WINTER 2018/2019 21 CRUISEBUSINESS.COM MAGAZINE SPRING 2020 15 Ultra-luxury cruise line Silversea Cruises has taken delivery of its first-ever destination-specific ship, the 5,800 gross ton and 100passenger Silver Origin, from Dutch shipyard De Hoop. An intimate ceremony on June 3 marked the first in-person ship delivery since the Covid-19 pandemic prompted a global lockdown. Select Silversea top executives – including Manfredi Lefebvre d’Ovidio, Executive Chairman; Roberto Martinoli, President and CEO; Damien O’Connor, SVP Hotel Operations & Onboard Revenue; and Barbara Muckermann, Chief Marketing Officer – attended the ceremony in Pernis, Rotterdam. Joined by representatives from De Hoop Shipyard, including CEO Patrick Janssens, Silversea’s executives took a tour of the completed ship for the first time. With a true Silversea style the executives traveled to Holland on a chartered private jet. UPFRONT 12-15 .indd 5 12-15 .indd 5 8.6.2020 7.51 8.6.2020 7.51
CRUISEBUSINESS.COM MAGAZINE SPRING 2020 17 ? meyerwerft.com The upcoming 50th anniversary in November 2020 of Royal Caribbean Cruise Line’s first cruise will highlight the dramatic development of the cruise industry over the past five decades. Looking today at Royal Caribbean’s modern fleet of megaships, it is hard to envision what cruising looked like when the company was founded in the late 1960s. As Royal Caribbean works to rebuild its business in the postpandemic era, CruiseBusiness.com Magazine recalls the origins of a global leader in cruising. By Allan E. Jordan Royal Caribbean builds and rebuilds cruising Royal Caribbean builds and rebuilds cruising T he vision for Royal Caribbean emerged in the 1960s, as Wisconsin-born Edwin Stephan became excited by the opportunities in the developing cruise business. After serving in the U.S. Army during the Korean War, Stephan headed to Miami in 1954, where he would get into the hotel business. Working near the port, he saw the little ships cruising to the Bahamas, Cuba and the Caribbean, and realized the appeal of a tropical vacation. By the early 1960s, Ed Stephan had become general manager of one of the fledgling cruise companies, a firm called Yarmouth Cruise Line, which operated two 5,000 gross ton, 1920s-vintage ships. The market was small, with just 250,000 passengers annually, but the business was growing. It almost came to a tragic end, though, on November 13, 1965, when the ss Yarmouth Castle burnt at sea claiming the lives of 90 passengers and crew. Still believing in the opportunities for cruising, Stephan continued to develop his vision for the modern business. The market was growing rapidly as the partnership between Knut Kloster and Ted Arison introduced the ms Sunward to Miami in December 1966 and announced plans to build four additional cruise ships for Norwegian Caribbean Lines. Anxious to get in on the developing business, Stephan teamed up with a Miami Beach hotel owner, Sanford Chobol, to launch Commodore Cruise Line. In the summer of 1967, they marketed a chartered Brazilian ship on Caribbean cruises from Miami, and in December 1968, introRoyal Promenades became an integral part of the Royal Caribbean experience in 1999 Nordic Prince, the second ship of original trio in the Caribbean 16-25 .indd 3 16-25 .indd 3 29.5.2020 9.42 29.5.2020 9.42
18 CRUISEBUSINESS.COM MAGAZINE SPRING 2020 duced one of Miami’s first year-round 7-night Caribbean cruises aboard the new 11,000 gross ton mv Boheme. Creating the brand Ed Stephan’s vision for modern cruising focused on what he called the “volume economy market.” Using “propelled hotels,” he believed it would be possible to make cruise vacations available to large numbers of people. He would employ newly built ships that would be efficient to operate and have amenities designed specifically for tropical cruises. There would be large outdoor decks, a swimming pool, spacious lounges and a restaurant featuring large windows. However, when it came to accommodations, Stephan believed the cabins should be small, efficient spaces for sleeping and standardized for easy marketing. In Norway, he hoped to entice some of the well-established shipping companies with his new business plan. The traditional passenger lines were leery of the brash American, but Stephan found his partners. Sigurd Skaugen, who headed the shipping company I.M. Skaugen, had operated passenger ships in the 1950s and was looking for an opportunity to enter the cruise business. Arne Wilhelmsen, with a Harvard M.B.A., was leading his family’s shipping company Anders Wilhelmsen. Cash-rich from success with tankers, he was looking to diversify. Intrigued by Stephan’s ideas, and maybe a little envious of the success of their fellow countryman Knut Kloster, Wilhelmsen and Skaugen traveled to Miami. There they would meet Irwin Stephens, who as the new port director was selling his vision for Miami as the cruise capital of the world. Like Kloster before them, these Norwegian ship owners were impressed by what they heard and saw. The partnership was incorporated in December 1968. Skaugen would provide the ship management, Wilhelmsen the financial management and Stephan the American marketing skills. A third partner, GotaasLarsen, joined as an investor in the summer of 1969. One of the first challenges for the new partners was to develop their corporate identity. They wanted a name that not only reflected the business, but also denoted quality. They considered names including Pleasure Cruise Line, Holiday Cruise Line and Crown Cruise Line, before selecting Royal Caribbean Cruise Line. Similarly, they considered names for their ships including the Coral Dawn, Norwegian Lights and Tropic Moon, before selecting Song of Norway, Nordic Prince and Sun Viking. Aboard its ships, Royal Caribbean Cruise Line would feature contemporary styling, with bold colors and modern furnishings such as Mies van der Rohe sofas in the embarkation foyer. The line also would use the names of popular musical stage shows, ranging from “My Fair Lady” to “Camelot” and “Annie Get Your Original partners Sun Viking, the third of the original trio, arriving in Miami 16-25 .indd 4 16-25 .indd 4 29.5.2020 9.42 29.5.2020 9.42
? AnttiMarine2020_Cruise business_90mmx279mm_042020.indd 1 AnttiMarine2020_Cruise business_90mmx279mm_042020.indd 1 27.4.2020 10.01 27.4.2020 10.01 Gun,” for its lounges and dining rooms to create familiarity and set the tone for passengers. The ships would be staffed with Norwegian officers, who were given American etiquette classes, and a West Indian hotel staff. Innovative ships The first of the new ships was ordered in September 1968, with the contract going to Wartsila in Helsinki, Finland. Best known for building Soviet-bloc icebreakers, Wartsila gave Royal Caribbean an attractive price of $16 million. An option for a sister ship would be exercised before the end of 1968, and a third ship was ordered in the summer of 1969. Construction began in April 1969. The design featured a long clipper-style prow and rounded cruiser stern, which created a sleek, modern look. The most distinctive feature started as an observation deck and evolved into a cocktail lounge and nightclub cantilevered off the ship’s funnel 10 stories above the waterline. Wilhelmsen would say the inspiration came from other, earlier observation decks, while Stephan said he had been inspired by the Space Needle, the centerpiece of the 1962 Seattle World’s Fair. Named the Viking Crown, the lounge seated just 50 passengers and was accessed by an outdoor staircase. It would become the company’s first signature feature. The Song of Norway was launched eight months later on a cold winter’s day, christened by the wife of the Norwegian prime minister. Construction began that same day on the Nordic Prince, which would be launched in July 1970, the same month the Song of Norway would run its first sea trials. While everyone was pleased with the look of the ship, the sea trials were less successful. As the vessel reached its cruising speed of 18 knots and top speed of 21 knots, it produced more than expected levels of vibration, which would require additional stiffeners in the hull. Once completed, the Song of Norway was delivered on October 5, 1970. After visiting Oslo, the ship proceeded across the Atlantic. The startup line’s big day finally came on November 7, 1970, when the Song of Norway sailed on its maiden voyage – a 7-night cruise to the eastern Caribbean. With bands on the dock and a fireworks display as it departed, the Song of Norway was hailed as “big and sleek.” At 18,000 gross tons and able to accommodate 870 passengers, it was the largest cruise ship to be homeported in Miami. The Nordic Prince was introduced in July 1971 and the Sun Viking in December 1972. These two sisters initiated 14-night cruises sailing on alternating weeks from Miami circling the Caribbean. Song of Norway’s dining room in its original design 16-25 .indd 5 16-25 .indd 5 29.5.2020 9.42 29.5.2020 9.42 Antti Marine Doors The new, safe and easy Antti E-hinge is the new online cabling system for marine doors. Easy to install, safe from damage and invisible from open to close. One more reason Antti Marine doors are in a class of their own. antti-teollisuus.fi/en/marine | tel. +358 2 774 4700
Sovereign of the Seas, Seaward, Seabourn Pride, Star Princess, Seabourn Spirit, Club Med I, Fantasy, Westerdam, Nordic Empress, Crown Princess, Horizon, Silja Serenade, Ecstasy, Regal Princess, Monarch of the Seas, Hanseatic, Silja Symphony, Majesty of the Seas, Dreamward, Zenith, Royal Viking Queen, Club Med II, Crown Jewel, Gruziya, Costa Allegra, Barfleur, Normandie, Windward, Crown Dynasty, Costa Romantica, Kazakhstan II, American Adventure, Kong Harald, Richard With, Nordlys, Oriana, Legend of the Seas, Century, Splendour of the Seas, Sun Princess, Carnival Destiny, Galaxy, Costa Victoria, Grandeur of the Seas, Nordkapp, Rhapsody of the Seas, Dawn Princess, Mercury, Enchantment of the Seas, Nordnorge, Vision of the Seas, Grand Princess, Sea Princess, R One, R Two, Voyager of the Seas, R Three, R Four, R Five, R Six, R Seven, R Eight, Norwegian Sky, Seven Seas Navigator, Explorer of the Seas, Aurora, Costa Atlantica, Millenium, Infinity, Adventurer of the Seas, Carnival Spirit, Radiance of the Seas, Norwegian Sun, Summit, Brilliance of the Seas, Constellation, Coral Princess, Navigator of the Seas, Island Princess, Crystal Serenity, Mariner of the Seas, Serenade of the Seas, Carnival Miracle, Jewel of the Seas, PontAven, Caribbean Princess, Carnival Valor, Pride of America, Norwegian Jewel, Carnival Liberty, Pride of Hawaii, Freedom of the Seas, Crown Princess, MSC Musica, Norwegian Pearl, Liberty of the Seas, Emerald Princess, MSC Orchestra, Norwegian Gem, Ventura, MSC Poesia, Independence of the Seas, Ruby Princess, MSC Fantasia, Celebrity Solstice, MSC Splendida, Oasis of the Seas, Celebrity Equinox, MSC Magnifica, Carnival Dream, Silver Spirit, Azura, Celebrity Eclipse, Le Boreal, Norwegian Epic, Queen Elizabeth, Allure of the Seas, L’Austal, Disney Dream, Carnival Magic, Celebrity Silhouette, Disney Fantasy, Carnival Breeze, MSC Divina, Celebrity Reflection, MSC Preziosa, Royal Princess, Mein Schiff 3, Regal Princess, Quantum of the Seas, Mein Schiff 4, Britannia, Anthem of the Seas, Carnival Vista, Ovation of the Seas, Harmony of the Seas, Mein Schiff 5, Silver Muse, Seabourn Encore, Majestic Princess, MSC Meraviglia, MSC Seaside, Symphony of the Seas, MSC Seaview, Seabourn Ovation, Mein Schiff 1, Aida Helios, Celebrity Edge, Mein Schiff 2, Costa Venezia, MSC Belissima, Spectrum of the Seas, Sky Princess, MSC Grandioza, Carnival Panorama, Celebrity Apex, P&O Iona, Enchanted Princess, Silver Moon, Odyssey of the Seas, Costa Firenze, Mardi Gras, MSC Virtuosa Top performer With three ships in service, Stephan and his team began to establish many of the elements that continue to be a part of the cruise industry. Working alongside him at a Miami advertising agency, and later as Royal Caribbean’s first marketing director, was a young Rod McLeod. Together, they would come up with marketing slogans such as “Who ever heard of a dull Viking!” and soon would be advertising the ships as “The most popular islands in the Caribbean.” They also began one of the industry’s first flycruise programs, operating charter flights from major cities including unique departures from California to Miami. Their efforts were successful, and in its first full year of operations, the Song of Norway had the highest occupancy percentage in the cruise industry. According to Travel Weekly, an American travel agent magazine, the vessel carried over 35,000 passengers, achieving a better than 95% occupancy rate and earning over $11 million in revenue. Again, in 1972, the Song of Norway led the industry with over 99% occupancy, while the Nordic Prince reported better than 97% occupancy. Consistently among the best performing lines in the 1970s, Royal Caribbean was challenged to increase capacity. Arne Wilhelmsen believed in economies of scale and had urged an enlarged design for the Sun Viking. The conservative board, however, was unwilling to pay the price to build a fourth ship. As an alternative, they explored buying the ms Royal Viking Sea from A.F. Klaveness, and to increase capacity, would have stretched the hull in a radical reconstruction. While the deal to buy the fourth ship did not proceed, the idea of enlarging the existing ships to increase capacity prevailed. A few liners and ferries had been rebuilt over the years, but Royal Caribbean’s 20 CRUISEBUSINESS.COM MAGAZINE SPRING 2020 New midsection of Song of Norway Arne Wilhelmsen with Sun Viking model 16-25 .indd 6 16-25 .indd 6 29.5.2020 9.42 29.5.2020 9.42
CRUISEBUSINESS.COM MAGAZINE SPRING 2020 21 decision to enlarge the Song of Norway in 1977 stunned the industry. Wartsila would cut the Song of Norway into two sections, inserting a new 85-foot mid-body that would add 328 berths and increase its capacity by over 40%. The complex operation was so successful that the Nordic Prince would also be lengthened in 1980. Royal Caribbean continued to see market opportunities, and as the line prepared to mark its 10th anniversary, an order was placed with Wartsila for a new 38,000 gross ton ship. Royal Caribbean had been slow to move beyond its original markets, but with the introduction of the mv Song of America in 1982, it began to catch up with competitors. The line introduced its first Western Caribbean cruises, and in 1985, based the Nordic Prince in New York – its first homeport outside Miami. In 1988, the original 14-night Caribbean itinerary ended, and soon Royal Caribbean was basing a ship in San Juan. It was the beginning of a worldwide expansion into cruise markets from Alaska to Asia and Europe. Royal Caribbean, however, still ranked third behind Carnival Cruise Lines and Norwegian Caribbean Lines with about 11% of the market in 1984. Having seen NCL’s success with the ss Norway, the industry’s first megaship, Royal Caribbean responded in 1985 by placing an order for a 70,000 gross ton ship able to accommodate 2,200 passengers. Introduced in 1988, the ? Nordic Prince and Song of America photographed in St. Thomas Original Viking Crown Lounge on Sun Viking 16-25 .indd 7 16-25 .indd 7 29.5.2020 9.42 29.5.2020 9.42
FREEDOM OF DESIGN WITH PROVEN SOLUTIONS INTERIOR AND EXTERIOR DECORATIVE SOLUTIONS Seamless, durable and flexible artificial PUR deck system, the new Sikafloor® Marine Deco Comfort and Teak. Contact us now Sika Services AG, Tueffenwies 16, 8048 Zurich Tel. +41 (0)58 436 58 01, www.sika.com/marine Sikafloor® Marine Deco Teak Sikafloor® Marine Deco Comfort 22 CRUISEBUSINESS.COM MAGAZINE SPRING 2020 Sovereign of the Seas was the first newly built megaship. At the same time, the line caught up with NCL’s successful private island concept, introducing Labadee on Haiti in 1986, followed by Coco Cay in the Bahamas. Accelerating growth The defining moment in Royal Caribbean’s future came shortly after the introduction of the Sovereign of the Seas. GotaasLarsen had decided it was time to sell its investment, accepting a lucrative offer from Carnival, and weeks later I.M. Skaugen also agreed to sell. Wilhelmsen, however, decided to exercise a first right of refusal, and in just a few frantic weeks, a new investment group was assembled that included the Pritzker family – owners of Hyatt Hotels – and Israeli shipping magnate Sammy Ofer. Richard Fain, who had been Gotaas-Larsen’s CFO and an outside director at Royal Caribbean, was selected as the line’s new CEO. The growth that followed would be dramatic. First, the company built two sister ships to the Sovereign of the Seas, followed in the mid-1990s by six 70,000 gross ton Vision-class ships, which were introduced as the original trio of ships was retired. Under the leadership of naval architect and marine engineer Harri Kulovaara, who took the reins of the newbuilding team in 1995, Royal Caribbean continued to break barriers with more innovative designs. The 142,000 gross ton Voyager class, introduced in 1999, was not only the world’s largest cruise ship design but featured the first Royal Promenade horizontal atrium running down the center of the ship. Passengers marveled at the vessels’ rock climbing walls and ice-skating rinks; later features would include the cruise industry’s first surfing simulators. The 225,000 gross ton Oasis class, launched in 2009, was able to accommodate 5,200 passengers with an open-air park, boardwalk Sovereign of the Seas being constructed in Chantiers de l’Atlantique. INLET: Viking Crown Lounge being installed 16-25 .indd 8 16-25 .indd 8 29.5.2020 9.42 29.5.2020 9.42
FREEDOM OF DESIGN WITH PROVEN SOLUTIONS INTERIOR AND EXTERIOR DECORATIVE SOLUTIONS Seamless, durable and flexible artificial PUR deck system, the new Sikafloor® Marine Deco Comfort and Teak. Contact us now Sika Services AG, Tueffenwies 16, 8048 Zurich Tel. +41 (0)58 436 58 01, www.sika.com/marine Sikafloor® Marine Deco Teak Sikafloor® Marine Deco Comfort CRUISEBUSINESS.COM MAGAZINE SPRING 2020 23 and aqua theatre. Then came the 168,000 gross ton Quantum class with its skydiving simulator and observation capsule. Royal Caribbean also took a role in the consolidation and globalization of the cruise industry. A merger with Admiral Cruises in 1988 brought the line into the short cruise market, including the 1990 introduction of the Nordic Empress, which boasted the tallest atrium at sea. While the line would miss out in investing in the family-owned Costa Cruises in the early 1990s, it acquired Celebrity Cruises in 1997 for $1.3 billion, providing an entry into the premium segment followed later by the launch of Azamara Club Cruises. Also in 1997, the company changed the name of its contemporary unit from Royal Caribbean Cruise Line to Royal Caribbean International in recognition of its growing global presence. And although it lost out to Carnival in the bidding for P&O Princess Cruises, it would expand into the international source market with the acquisition of Spain’s Pullmantur Cruises in 2006. Royal Caribbean would also invest with Germany’s TUI to build the Mein Schiff fleet. Finally, in ? Central Park is one of the signature areas on the Oasisclass ships. At around 225,000 gross tons, Oasis-class vessels are the largest cruise ships in the world 16-25 .indd 9 16-25 .indd 9 29.5.2020 9.42 29.5.2020 9.42
THE STRENGTH AND STABILITY TO SUPPORT YOUR CRUISE BUSINESS Ranked one of the top cruise ports in the world, Port Everglades offers the reliability, service and efficiency to help your business run smoother — and your passengers smile wider. Visit porteverglades.net or call 800-421-0188. • Our modern, efficiently operated terminals make transit a breeze. • We move passengers from curb to ship in just 15 minutes. • We’re fully scalable — accommodating any size ship or passenger volume. • Just two miles from FLL International Airport and minutes from world-famous beaches for easy access. • Our Harbormaster Office is a one-stop concierge open 24/7. • Year-round berthing available. port.everglades | @porteverglades | PortEvergladesFL | port-everglades PEG888_Cruise Business Review FP Anchor_mech.indd 1 5/2/18 9:03 AM 24 CRUISEBUSINESS.COM MAGAZINE SPRING 2020 2018 the company entered the ultra-deluxe and expedition segments by acquiring a majority stake in Silversea Cruises. It took Royal Caribbean 13 years to reach its one-millionth passenger, but just five years later, the line would hit the two million mark. With an increasing focus on appealing to the next generations of cruisers, Royal Caribbean surpassed its 30 millionth passenger in 2013 as it became known for its “wow” features. Approaching its 50th anniversary, the line’s ships were sailing to more than 275 destinations in 68 countries on six continents. In 2019, the public company reported it was operating 61 ships, carrying 6.5 million passengers, and achieved a record $11 billion in revenues – 1,000 times the first year’s revenue of the Song of Norway. The future looked bright with another 17 new ships on order. However, as its 50th year dawned, Royal Caribbean was facing the most challenging time in the company’s history. On a sad note, 87-year-old Ed Stephan died in November 2019, and just five months later, 90-year-old Arne Wilhelmsen died, the last of the company’s founders. With operations suspended in the face of a global pandemic, Royal Caribbean will start its second half-century where it began, working to build, or this time rebuild, cruising. After having guided the stellar growth of the past 30-plus years, Richard Fain – now corporate chairman and CEO – has sought to reassure the travel community as Royal Caribbean responds to the challenges that lie ahead. Drawing on its experience and organizational strength, the company expects to gradually resume operations, and – just as it did in 1970 – to lay the groundwork for the future. n Royal Caribbean Cruises Ltd. Chairman and CEO signing the delivery of Spectrum of the Seas. Pictured: RCI CEO Michael Bayley, EVP Maritime Harri Kulovaara and Meyer Werft Managing Partners Tim Meyer and Bernard Meyer SeaPlex on Quantum-class ships offer multi-activity areas, with activities that include, among others, bumper cars 16-25 .indd 10 16-25 .indd 10 29.5.2020 9.43 29.5.2020 9.43
THE STRENGTH AND STABILITY TO SUPPORT YOUR CRUISE BUSINESS Ranked one of the top cruise ports in the world, Port Everglades offers the reliability, service and efficiency to help your business run smoother — and your passengers smile wider. Visit porteverglades.net or call 800-421-0188. • Our modern, efficiently operated terminals make transit a breeze. • We move passengers from curb to ship in just 15 minutes. • We’re fully scalable — accommodating any size ship or passenger volume. • Just two miles from FLL International Airport and minutes from world-famous beaches for easy access. • Our Harbormaster Office is a one-stop concierge open 24/7. • Year-round berthing available. port.everglades | @porteverglades | PortEvergladesFL | port-everglades PEG888_Cruise Business Review FP Anchor_mech.indd 1 5/2/18 9:03 AM 16-25 .indd 11 16-25 .indd 11 29.5.2020 9.43 29.5.2020 9.43
? 26 CRUISEBUSINESS.COM MAGAZINE SPRING 2020 PREVIEW CELEBRITY APEX GETS ‘VIRTUAL’ DELIVERY If it weren’t for the Covid-19 pandemic and global travel restrictions, CruiseBusiness.com Magazine Publisher Teijo Niemelä would have been on hand at the end of March to give his first impressions of the new Celebrity Apex – the second of Celebrity Cruises’ Edge-class ships built at the Chantiers de l’Atlantique Shipyard in Saint-Nazaire, France. 26-29.indd 2 26-29.indd 2 8.6.2020 7.57 8.6.2020 7.57
28 CRUISEBUSINESS.COM MAGAZINE SPRING 2020 I nstead, Celebrity Cruises canceled all inaugural activities for its newest vessel and took possession of the “keys” to the ship during a virtual ceremony on March 27. In what may have been a first in the cruise business, Royal Caribbean Cruises Ltd. and Celebrity executives accepted official ownership of the Apex via video conference with officials from the French shipyard. “Every delivery is unique, just as every ship is unique,” said Celebrity Cruises President and CEO Lisa LutoffPerlo in a company statement. “While the circumstances are quite unique right now, it is fitting that such an innovative ship as Celebrity Apex would have a digital-age delivery,” she continued. Celebrity came back to Chantiers de l’Atlantique after building five Solsticeclass vessels with Germany’s Meyer Werft between 2008 and 2012. At 130,818 gross tons and with a guest capacity of 2,910, the Edge-class ships are a bit larger than those of the Solstice class, which register up to 125,366 gross tons. According to the line’s original plan, Celebrity expected to name the Apex on March 30 in a Southampton ceremony featuring godmother Reshma Saujani. The ship’s inaugural season was to include cruises in the Mediterranean before crossing the Atlantic to Florida’s Port Everglades. At press time during the first week of June, the Celebrity Apex remained docked quayside at Chantiers de l’Atlantique. International team of designers Celebrity Cruises assigned a number of renowned designers and architects to the Edge-class ships, some of them without previous cruise experience. Among them were Kelly Hoppen, MBE, for cabins and suite experience; Tom Wright of WKK for ship exteriors and open decks; Patricia Urquiola for the interior design of The Club and Eden; Scott Butler of Wilson Butler Architects (an RCCL collaborator since the Voyager class) for Eden and The Theatre; plus Jouin Manku for the Grand Plaza and circulation. The Celebrity Edge and Celebrity Apex share some distinctive exterior features: Their bow is straight and not curved as with most modern ships. This is known as a parabolic ultra-bow and is part of Royal Caribbean’s efforts to improve the hydrodynamics of the hull and cut fuel consumption. In fact, the Edge class ships are some 20% more energy-efficient than the Solstice class ships introduced just a decade earlier. The Magic Carpet on the ships’ starboard side is another eye-catching element. While it may be suggestive of scaffolding on an unfinished exterior still under construction, The Magic Carpet is very much permanent. Its main function is to ease the inconvenience of tendering operations by offering a convenient boarding station. While at sea, it provides a unique restaurant and bar that extends up to Deck 16. As far as accommodations are concerned, the Edge-class ships feature 1,467 staterooms and suites, of which 81% offer private verandas. A majority of the balconied cabins offer Infinite Verandas – a first in the industry – which means their windows can be opened or closed by lowering or raising glass walls. With this option, an Edge-class cabin is 23% larger than similar accommodations aboard the Solstice-class. Similarly, bathroom size has been increased by 10%. In-room automation allows passengers to control and personalize everything by means of a simple touchscreen, including lighting, cabin temperature and services. Enhanced culinary and entertainment offerings Once it enters service, the Celebrity Apex will offer enhancements to its culinary offerings created by the company’s Michelin-starred Chef Cornelius Gallagher. Cafe al Bacio Magic Carpet 26-29.indd 4 26-29.indd 4 8.6.2020 7.57 8.6.2020 7.57
CRUISEBUSINESS.COM MAGAZINE SPRING 2020 29 The Craft Social Bar will offer draft cocktails, wines on tap and more than 50 of the world’s rarest craft beers served by a certified beer sommelier. Menu items will include contemporary comfort foods like mac-and-brie, Kobe beef sliders, crispy chicken sliders and meat and cheese boards. Large screen TVs will broadcast live sporting events. Le Grand Bistro will offer a new 3-D digital animation dining experience. The menu, created by Chef Gallagher, fuses entertainment and dining and features such dishes as pea soup, King Crab farfalle pasta and filet mignon. Meanwhile, the Celebrity Apex’s threedeck “indoor natural wonderland,” Eden – a spectacular venue complete with sweeping panoramic, outward facing windows – will feature new a la carte appetizers, entrees and desserts made with ingredients sourced from local farms and fisheries. A sampling of the new menu items includes roasted Spanish prawns with melted peppers, cured fresh chorizo, pastrami with Devonshire Dijon mustard emulsion, mashed potatoes cooked in duck fat and crispy rye bread sautéed in butter and melted raclette cheese. In addition, new menu items have been created for Raw on 5, Magic Carpet, Fine Cut Steakhouse, Rooftop Garden Grill, and the ship’s four main restaurants – Cosmopolitan, Cyprus, Normandie and Tuscan. On the entertainment front, the Celebrity Apex will introduce three new stage shows in The Theatre and an intimate cabaret show in The Club, among other themed experiences and activities throughout the ship. The Theatre incorporates new technology into its design, including a 23-foot-tall 4K LED screen curving around the stage and eight Panasonic 20K laser projectors to create a 360-degree wraparound picture for audiences. A 20-foot-tall Tree of Life – complete with over 3,000 LED leaves – will play a starring role in several new productions. These will include “Rockumentary,” celebrating great classic rock moments, and “Crystallize,” an energizing performance featuring light, laser projections, custom video content, music, dance and aerial acrobatics, all tied together by a world-class violinist. n The Theatre 26-29.indd 5 26-29.indd 5 8.6.2020 7.57 8.6.2020 7.57
FINANCE COVID-19 SINKS INDUSTRY FINANCIALS Around Christmastime, reports started to emerge from China about a virus that had caused a number of deaths. Early in the new year, cruise lines issued profit warnings related to their China operations. The rest is history. By Kari Reinikainen 30 CRUISEBUSINESS.COM MAGAZINE SPRING 2020 30-33 .indd 2 30-33 .indd 2 4.6.2020 8.34 4.6.2020 8.34
? CRUISEBUSINESS.COM MAGAZINE SPRING 2020 35 A s could be expected, the first three months of this financial year to the end of February brought a significant deterioration in the quarterly results of Carnival Corporation & plc, the first of the three listed cruise majors to disclose its figures, compared to the same period a year earlier. The world’s largest cruise shipping group booked a net loss of $781 million for the period, compared to a profit of $336 million in the previous year. Net gains on ship sales affected the bottom line positively, but impairment charges on goodwill and ships hit the bottom line by $932 million. Meanwhile, Royal Caribbean Cruises Ltd. (RCCL), the world’s second-largest cruise shipping group, reported a net loss of $1.4 billion for the first quarter of 2020, a marked deterioration from a profit of $249.7 million a year earlier. An impairment charge of $1.1 billion impacted the fresh figure. Norwegian Cruise Line Holdings Ltd. (NCLH) suffered a net loss of $1.9 billion in the first three months of the year, a sharp weakening from a profit of $118.2 million in the same period of 2019. Although the smallest of the three listed cruise majors, NCLH’s impairment charge of $1.6 billion was larger than that of its two larger peers in the corresponding period. The leading three cruise shipping groups have raised funding to allow them to survive roughly until the spring of 2021. This has included extending debt maturities and significant increases in new borrowing in the form of notes. RCCL had not raised any equity up to the time of writing, and it is perhaps of interest to note that its senior secured notes due in 2023 that carry a 10.88% coupon actually mean cheaper borrowing costs than the first priority notes of Carnival, which are also due in 2023 and have a coupon of 11.50%. Carnival’s $4.00 billion first EQUITY AND NOTE ISSUES OF THREE LISTED CRUISE COMPANIES COMPANY INSTRUMENT AMOUNT COUPON/PRICE MATURITY Carnival First pri sec $4,000 11.50% 2023 Conv snr $1,950 (1) 5.75% 2023 Common stock 71.785 $8.00 RCCL Snr sec $1,000 10.88% 2023 Snr sec $2,320 11.50% 2025 NCLH Exch snr $750 (2) 6.00% 2024 Exch snr $400 variable 2026 Snr sec $675 2.25% 2024 Ordinary shares 36.363 (3) $11.00 priority secured note placement was the largest single issue of securities that the three cruise majors have carried out so far. NCLH carried out four transactions, which is the highest number among the leading groups, and its exchangeable senior notes due to mature in 2026 placed with fund manager L Catterton represent the longest maturity of debt issued by the three groups so far. The debt and equity securities of all three have been offered in the form of private placements rather than public offerings. Issued amounts in millions (1) plus optional $62.5 million (2) plus optional $112.5 million (3) plus optional $52.5 million Conv sec = convertible secured notes Exch snr = exchangeable senior notes First pr sec = first priority secured notes Sources: Carnival Corporation & plc, RCCL, NCLH CRUISEBUSINESS.COM MAGAZINE SPRING 2020 31 ? 30-33 .indd 3 30-33 .indd 3 4.6.2020 8.34 4.6.2020 8.34
32 CRUISEBUSINESS.COM MAGAZINE SPRING 2020 Capital expenditures under review The leading three listed cruise shipping groups have decided to reduce capital expenditures in the wake of the present crisis, which will mean delayed deliveries of newbuildings plus postponement of some refits that had been planned. PLANNED CAPITAL EXPENDITURE OF LISTED THEE CRUISE COMPANIES COMPANY 2020 2021 Carnival $7,000 $5,800 RCCL $3,000 $1,400 NCLH $195 (1) n/a (1) net of expected deferrals of newbuilding related payments The Carnival group said that at the end of February, it had a total of 16 ships scheduled to be delivered through 2025, including four during the present financial year. “We believe the effects of Covid-19 on the shipyards where our ships are under construction will result in delays in ship deliveries, which we cannot predict and may be prolonged,” the company said in its first-quarter interim report. The company had $12.80 billion in projected capital expenditures in total for 2020 and 2021, but delayed delivery of newbuildings could reduce this figure significantly. NCLH has the best situation in that it has no newbuildings due to enter service before 2023. This means it is able to slash capital expenditures more easily and quickly than its larger peers that both have ships scheduled to enter service this year. Renegotiating delivery dates with shipyards is likely to take up quite a lot of management resources, but as some of the expected delays in deliveries could be significant, NCLH may have to address these issues as well. Suspension of operations does not lead to suspension of operating expenses. In fact, even without a single ship sailing and with both seagoing plus land-based staff reduced, the Carnival group is burning through about $1.0 billion of cash each month, while RCCL estimates the figure to be in the bracket of $250 million to $275 million. NCLH, the smallest of the three listed cruise industry majors, estimates its cash burn to be in the region of $120 million to $160 million each month. Future bookings give rise to optimism A major question facing the industry right now is: At what pace will people return to cruising once operations resume? The latter will be a gradual process in and of itself. A media report in the UK said in May that Carnival Cruise Line bookings rose 600% after the company announced it would resume some of its cruises in August. “The sharp rise in bookings is 200 % higher than this same time last year, reports an American Express travel agent,” the Daily Mail said on its website. The industry can only hope that this is the case and that the recovery will be brisk. However, so far the cruise shipping groups themselves have taken a cautious approach. Carnival said in its interim report that at the end of the first quarter of its financial year on February 29, the current portion of its customer deposits was $4.7 billion. “Depending on the length of the pause and level of guest acceptance of future cruise credits, we may be required to provide cash refunds for a substantial portion of the balance. For the two weeks ended March 15, 2020, and on a weighted average basis based on available lower berth days [ALBD], approximately 45% of the guests who have contacted us have accepted future cruise credits in lieu of cash refunds for cancelled voyages,” the company said. Meanwhile, RCCL noted in its first quarter report that its booked position for 2021 is within historical ranges when compared to same time last year, with 2021 prices up mid-single digits compared to 2020. However, it also pointed out that the timing was still early in the booking cycle. “The Company has implemented various programs in order to best serve its booked guests providing the choice of future cruise credits in lieu of providing cash refunds for both cancelled sailings and future bookings. As of April 30, 2020, approximately 45% of the guests booked on cancelled sailings have requested cash refunds. Additionally, as of March 31, 2020, the Company had $2.4 billion in customer deposits,” RCCL said. NCLH noted that there continues to be demand for cruise vacations particularly beginning in the fourth quarter of this year, which is then accelerating through 2021. The company’s overall booked position and pricing for 2021 remained within historical ranges, the company said in its interim report. NCLH had $1.8 billion of advanced ticket sales at the end of March, including the long-term portion. “This includes approximately $800 million for previously announced voyage cancellations through June 30, 2020, where guests have the option of either a future cruise credit or a cash refund, and approximately $370 million for voyages scheduled for the remainder of 2020,” the company said. Bad situation, but could be worse The current situation is unprecedented in the cruise industry, which sailed remarkably well through previous upheavals such as the financial crisis of 2008 and the events of 911 seven years earlier. This had given reason for Richard Fain, Chairman and CEO of RCCL, to describe the cruise industry as “recession resistant, but not recession proof.” Recession proof the industry could not be, when global travel ground to a halt in a matter of two months. However, Fain’s colleagues at companies representing other sectors of shipping – from tankers to dry bulk carriers and offshore services – would probably envy the cruise industry’s position. Previous emergencies have resulted in corporate restructurings, forced upon many companies by their lenders. Debt has been Facing challenges are a part of everyday life. Thanks to my team and the MKN FlexiChef I’m de? nitely up for any of them. Smart technology guarantees perfectly cooked dishes and takes care of cleaning too. MKN FlexiChef smart cooking. smart cleaning. I MAKE THE RIGHT CHOICE EVERY DAY! #mychoice | WWW.MKN.COM 30-33 .indd 4 30-33 .indd 4 4.6.2020 8.34 4.6.2020 8.34
Facing challenges are a part of everyday life. Thanks to my team and the MKN FlexiChef I’m de? nitely up for any of them. Smart technology guarantees perfectly cooked dishes and takes care of cleaning too. MKN FlexiChef smart cooking. smart cleaning. I MAKE THE RIGHT CHOICE EVERY DAY! #mychoice | WWW.MKN.COM CRUISEBUSINESS.COM MAGAZINE SPRING 2020 33 converted to equity after often gruesomely difficult negotiations. Stakes of existing shareholders have often been completely wiped out. A major listed European product tanker owner went through two such processes in the aftermath of the 2008 financial crisis. There have been business failures, but not many: A prolonged crisis in shipping after the 1973 oil price shock taught banks that they are not good shipowners, and that it’s better to find another way out of the situation, no matter how hard it might be. Banks are probably not good cruise ship owners and operators either, so the collapse of even a second-tier company in terms of size is not in their interest. Unlike tankers and dry bulk carriers, there is no ready off-the-shelf price for a cruise ship, and a corporate failure and fire sale of distressed assets could trigger the unpleasant question of the market value of these vessels. This could lead to further impairment charges, which has occurred in other parts of the shipping industry. After all, a materialized sale is a price point, a benchmark. The current times are hard indeed. But it is in everybody’s interest to try to secure the future of all concerned. n 30-33 .indd 5 30-33 .indd 5 4.6.2020 8.34 4.6.2020 8.34
C M Y CM MY CY CMY K ai158048707673_CRUISE_Cruise_Business_Rev_210x297.pdf 1 31/01/20 17:11 34-41 .indd 2 34-41 .indd 2 29.5.2020 9.53 29.5.2020 9.53
? CRUISEBUSINESS.COM MAGAZINE SPRING 2020 35 SHIP REVIEW C M Y CM MY CY CMY K ai158048707673_CRUISE_Cruise_Business_Rev_210x297.pdf 1 31/01/20 17:11 T he Seven Seas Splendor has dethroned its sister ship, the Seven Seas Explorer, from the “world’s best” title (think of the new ship as the “world’s best, part two”). In the process, the line made some significant changes, consulting with both its customers and a leading team of designers before making the updates, said Jason Montague, President and CEO of Regent Seven Seas Cruises. Tillberg Design of Sweden and Studio DADO did the majority of the spaces, while Total Solutions Interiors worked on two categories of suites and YSA Design contributed a restaurant. The Seven Seas Splendor has two big talking points: An extravagant, palatial Regent Suite housing a $200,000 bed and SEVEN SEAS SPLENDOR DELIVERS When you market a ship as the “world’s most luxurious,” as Regent Seven Seas Cruises has done with its new 750-passenger Seven Seas Splendor, you had better be prepared to deliver. Regent does just that, with a big dose of luxury generated by the design of the ship. By Fran Golden expansive private spa, and a giant bronze dragon guarding the entrance of the ship’s pan-Asian restaurant, Pacific Rim. Only Regent Suite guests may bounce on the bed and enjoy endless complimentary in-suite massages. The entire passenger list may face the menacing dragon on the way into one of ship’s best restaurants. As with the Seven Seas Explorer, which debuted in 2016, the Seven Seas Splendor is a showcase for Italian marble (more than an acre onboard), used in intricate inlaid floors and lighted on walls. Public spaces are expansive with oversized ceilings and illuminated by hundreds of hand-blown crystal and glass chandeliers – even in stateroom hallways, where guests walk on plush carpets. Quality French and Italian fabrics can be found throughout, with some decorative gold leaf here, silver leaf there. On the technical side, the Seven Seas Splendor is also the first ship in the Regent fleet equipped to connect to shore power, which will be used in the 16 cruise ports of call worldwide where it is available. Timeless elegance In creating the interiors for the Seven Seas Splendor, the focus was on “attention to details, timeless elegance, and a bit more modern look, lighter and more contemporary,” said Helena Sawelin, Partner and Business Director of Tillberg Design. “It is how you combine the materials together and the level of details into the architectural that makes the difference.” Studio DADO was responsible for the specially commissioned dragon, Splendor Lounge 34-41 .indd 3 34-41 .indd 3 29.5.2020 9.53 29.5.2020 9.53
FREEDOM IN FUNCTION AND DESIGN DOBEL® Film Laminated Metal for Exclusive Interiors metalcolour.com Imagine a product so strong that it can be bent, stretched, stressed and used for years without any loss of performance or looks. DOBEL® F 105 allows designers to be creative in form while retaining both functional and safety properties. The combination of metal together with design features in foils gives a versatile material to many areas of use such as wall panels, ceilings, wet-units, furniture and many others. DOBEL® F 105 also meets all relevant approvals in the Marine Sector and comes with the best Quality and Service Guarantee the market can o er. Since 1973 Metalcolour has been providing innovative solutions reducing costs and creating value to clients. Metalcolour is also well known for its unique exibility, reliabilitiy and service approach. K L A SI FI E D .s e M A R C H 2 2 Metalcolour Sverige AB Emaljervägen 7 SE-372 30 Ronneby Phone: +46 457 781 00 info@metalcolour.com Metalcolour A/S Agrovej 6 DK-4800 Nykøbing F. Phone: +45 5484 9070 info@metalcolour.com Metalcolour Asia Pte Ltd 17 Tuas Avenue 4 SG-639368 Singapore Phone: +65 6898 2535 info@metalcolur.com pnr3906-annons-hel-cruisebusinessmagazine#4-17mars-mc-infor.indd 1 pnr3906-annons-hel-cruisebusinessmagazine#4-17mars-mc-infor.indd 1 2020-03-23 10:51 2020-03-23 10:51 36 CRUISEBUSINESS.COM MAGAZINE SPRING 2020 and Yohandel Ruiz, Founding Partner of the design firm, told CruiseBusiness.com Magazine that the creation and installation of the one-of-a-kind sculpture was particularly complex. While the piece was being handcrafted by artisans in China, clay models were created to ensure that all the pieces would fit together once onboard. “The ceilings couldn’t be finished until the dragon was complete,” Ruiz said. “Fitting the dragon required a lot of coordination.” Even more challenging, though, was the design of the ship’s Observation Lounge, which incorporates a light and airy color palette to invoke a graceful English garden. Guests sit under a canopy of white, clear and milky glass roses while surrounded by hand-painted flowers in a space that is not just for relaxing and looking at the sea. “The venue has to transform for a multitude of functions, such as private events and dancing, and – depending on ports of call – is also used for sightseeing as well, and the design had to reflect all those uses. These programming requirements made the design more challenging than other spaces,” Ruiz said. It’s also the space he is most proud of. For the Serene Spa & Wellness, a new spa brand created fleetwide for Regent by OneWorld Spa, Studio DADO worked with a theme of butterflies to showcase a wellness experience designed to transform guests, body and soul. “The design approach looks at wellness as a journey of inner reflection that a person goes through, much like the metamorphosis of a butterfly,” Ruiz explained. “All elements have been selected to evoke a butterfly theme including an intricate wall of butterfly wings, which mimic migratory patterns to lend a sense of movement to the space.” A suite like no other Tillberg created the extravagant Regent Suite, a two-bedroom, three-bathroom, 4,443-square-foot palace with two balconies and its own seaview solarium. Lighter and more contemporary than the one aboard the Seven Seas Explorer, it tops even that haven of luxury. The $200,000 Vividus horsehair bed was built by Swedish company Hästens and involved the work of four master artisans. From the vantage point of the bed, guests can stare at the sea or at the original Picasso linocut on one wall. The master bath/spa, with its own sauna and heated loungers, is appointed in dark onyx and marble and is 30% larger than the same space on the Seven Seas Explorer, allowing for the addition of a large and stunning shower with glass walls for floor-to-ceiling ocean views (Tillberg created the extra space by moving forward the outdoor whirlpool). The Regent Suite also comes with a Steinway grand piano in the living room (you can order up a pianist to play!) and the coolest coffee machine setup at sea: beverages come out of a goose-neck faucet built into the bar counter. The price for such luxury, which also includes unlimited massages, private butler service and a car and driver in every port, is $11,000 per night for two (more if you have guests). ? Fitting the dragon required a lot of coordination Seven Seas Splendor at Fincantieri’s Ancona Shipyard prior to delivery 34-41 .indd 4 34-41 .indd 4 29.5.2020 9.53 29.5.2020 9.53
FREEDOM IN FUNCTION AND DESIGN DOBEL® Film Laminated Metal for Exclusive Interiors metalcolour.com Imagine a product so strong that it can be bent, stretched, stressed and used for years without any loss of performance or looks. DOBEL® F 105 allows designers to be creative in form while retaining both functional and safety properties. The combination of metal together with design features in foils gives a versatile material to many areas of use such as wall panels, ceilings, wet-units, furniture and many others. DOBEL® F 105 also meets all relevant approvals in the Marine Sector and comes with the best Quality and Service Guarantee the market can o er. Since 1973 Metalcolour has been providing innovative solutions reducing costs and creating value to clients. Metalcolour is also well known for its unique exibility, reliabilitiy and service approach. K L A SI FI E D .s e M A R C H 2 2 Metalcolour Sverige AB Emaljervägen 7 SE-372 30 Ronneby Phone: +46 457 781 00 info@metalcolour.com Metalcolour A/S Agrovej 6 DK-4800 Nykøbing F. Phone: +45 5484 9070 info@metalcolour.com Metalcolour Asia Pte Ltd 17 Tuas Avenue 4 SG-639368 Singapore Phone: +65 6898 2535 info@metalcolur.com pnr3906-annons-hel-cruisebusinessmagazine#4-17mars-mc-infor.indd 1 pnr3906-annons-hel-cruisebusinessmagazine#4-17mars-mc-infor.indd 1 2020-03-23 10:51 2020-03-23 10:51 34-41 .indd 5 34-41 .indd 5 29.5.2020 9.53 29.5.2020 9.53
38 CRUISEBUSINESS.COM MAGAZINE SPRING 2020 Among the most significant design changes between the Seven Seas Explorer and Seven Seas Splendor is the reimagined atrium. The new configuration features a grand double staircase that floats organically between decks 5 and 4, leaving guests positioned to walk a straight path to Compass Rose, the ship’s main restaurant. On the Seven Seas Explorer, guests leave the staircases walking in the opposite direction. “We wanted to create a light open and soft shape of staircase, and it was a struggle with technical requirements of vibration protection, etc. But the result is great,” said Sawelin. “When everyone wants the best, it ? Entrance to the Compass Rose Restaurant From left to right: Living room of Splendor Suite; Splendor Penthouse Suite bathroom; Splendor Superior Suite 34-41 .indd 6 34-41 .indd 6 29.5.2020 9.53 29.5.2020 9.53
C M Y CM MY CY CMY K ai158048813883_MI_Cruise_Business_Rev_191x135_ESE.pdf 1 31/01/20 17:29 CRUISEBUSINESS.COM MAGAZINE SPRING 2020 39 34-41 .indd 7 34-41 .indd 7 29.5.2020 9.53 29.5.2020 9.53
40 CRUISEBUSINESS.COM MAGAZINE SPRING 2020 is possible to find a perfect solution for every challenge.” Above the staircase is a stunning hand-blown glass chandelier, while surrounding it are chairs placed in intimate groupings. Another reimagined space is the Coffee Connection, a popular gathering spot for drinks and snacks. Designers swapped spaces, moving the café to port side and the Meridian Lounge across the way to starboard. The result is better passenger flow, SEVEN SEAS SPLENDOR Technical information Built 2020, Fincantieri, Ancona Shipyard Gross tonnage 55,182 Length oa 223.7 m Beam 31 m Design draught 7.06 m Passenger cabins 377 Crew cabins 327 Classification society Lloyd’s Register Flag Marshall Islands Main engines 4 x 8,000 kW MaK 8M43C La Veranda Restaurant 34-41 .indd 8 34-41 .indd 8 29.5.2020 9.53 29.5.2020 9.53
C M Y CM MY CY CMY K CruiseBusiness_ 191x135_ESE.pdf 1 04/03/20 12:22 CRUISEBUSINESS.COM MAGAZINE SPRING 2020 41 an airier space and the welcome addition of outdoor seating for coffee lovers. With white marble and vibrant turquoise upholstery, it’s an even more desirable hangout spot. Most expensive ship per bed Three of the design firms were assigned categories of suites and worked to make them feel more spacious, while using the same footprints as those on the Seven Seas Explorer. They achieved the goal of more walk-around space by streamlining furnishings and moving doors of walk-in closets. In some cases, bathrooms and closets were expanded. Elsewhere, the ship boasts some new “secret” viewing alcoves. In La Veranda, the buffet restaurant, there are four over-the-water alcoves providing three-sided views of the sea. In the Observation Lounge, Studio DADO added two cushy alcoves that jut out atop the bridge for enhanced panoramic viewing. On a preview cruise from Miami, Frank Del Rio, President and CEO of Regent’s parent company, Norwegian Cruise Line Holdings Ltd., said the cost of building the Seven Seas Splendor was $600 million, which, he noted, makes it the world’s most expensive ship ever on a per-bed basis. Del Rio is a well-known lover of art and design, and Sawelin said this knowledge made him an ideal client. “It is fantastic to work with a client that is interested in design, always has attention to details and the drive to be better than the last time. It can be challenging, but I find it very satisfactory to have a goal to reach that makes us alert and gives us the possibility to work as a design partner to the client,” she said. The $5 million art collection on the Seven Seas Splendor showcases Del Rio’s preference for Latin artists, including a $225,000 painting by Chilean surrealist Roberto Matta in the atrium and works by Joan Miró and Picasso in the bar of the Prime 7 steakhouse. The dragon came with a price tag in the hundreds of thousands of dollars, but then again, dragons throughout Asia are an embodiment of good luck. They guard temples and other precious places, and the Seven Seas Splendor is indeed a special place. Culinary enhancements In addition to the ship’s design enhancements, Regent’s culinary team added 200 new dishes to the Seven Seas Splendor’s menus that eventually will be featured fleetwide. New craft cocktails include a whole menu of gin drinks made with fresh herbs, fruits and vegetables. YSA Design brought a breath of fresh air to the Seven Seas Splendor’s dining experience. The deck 11 La Veranda aft restaurant features subtle finishing touches and enclosed balconies both starboard and portside that offer diners a spectacular ocean view. According to Anne Mari Gullikstad, YSA Design CEO and Project Leader for La Veranda, “the unrestricted views create a feeling of openness in a relatively narrow space, while the bays were constructed in such a way that they do not detract from the ship’s side aspect, cast shadows over cabin balconies below or obscure views from the bridge.” The glass-sided projections were at the heart of YSA’s concept for La Veranda as a complete dining space, which—drawing on the meaning of its name—captures the essence of al-fresco dining in a new way. The bright and colorful décor evokes the outdoors and breaks up the longitudinal view through the restaurant, diverting the eye towards the sea and sky outside. There is even an openair space complete with balcony, garden pavilions and outdoor seating. n 34-41 .indd 9 34-41 .indd 9 29.5.2020 9.53 29.5.2020 9.53
42 CRUISEBUSINESS.COM MAGAZINE SPRING 2020 S W E D E N • P O L A N D • U S A • S I N G A P O R E • T I L L B E R G D E S I G N . C O M Delivering Dreams is our vision. For us at Tillberg Design of Sweden, that means a true guest focus and an aim to always not only meet expectations, but exceed them, surprise and create memories to last a lifetime. We design for the little boy on his first cruise, the married couple celebrating their 50th anniversary, the girlfriends on an escape from their everyday lives and every other guest looking for their dream vacation. We aim to challenge and innovate, always with a strong foundation in our over three hundred delivered projects. We are with our clients all the way from brand creation to space planning, compelling marketing visuals, signage, inspections and contact with consultants and suppliers. We happily discuss sustainability and when it’s time, we gladly help the cruise ship or yacht to a second life using our extensive refurbishment experience. Welcome to TDoS – world-leading marine design since 1964. Teijo Niemelä: There are over 110 new cruise ships on order. How do you see the sourcing of qualified deck and engine officers? Is it difficult? Constantino Susino: Definitely, yes, from my point of view with all of these new ships coming up. The new people don't have the necessary time to grow up, because everything is happening faster. Experience is coming down, of course. I remember when I was a second engineer, before you were ever promoted was 10 years, at the least, and now it’s 10 months. But this is the normal evolution of the cruise industry at the moment, because it’s growing fast. Maksym Melnikov: The issue I see with young officers when they come onboard, what they learn in the facilities like academies or colleges is not necessarily what they see on a real ship. And many of them, if not most, come with a rather narrow vision. And in many companies – I hope it's not the case with us – but in many companies, they give them a function and they stay with this function, not learning above and beyond. And when it comes to promotion, many of them expect that promotion will be automatic. That's not the case. And we try, of course, to train them, to teach them. But some individuals are simply not SHIP OPERATIONS CHALLENGES OF TRAINING AND SOURCING QUALIFIED CREW Chat with Riviera Captain and Chief Engineer A short time before the Covid-19 crisis halted global cruise operations, CruiseBusiness.com Magazine Publisher Teijo Niemela sailed aboard Oceania Cruises’ Riviera and chatted with Captain Maksym Melnikov and Chief Engineer Constantino Susino. A transcript of their discussion follows, edited for clarity. ? Ph oto cre dit , all ph oto s: Te ijo Ni em elä Chief Engineer Constantino Susino and Captain Maksym Melnikov 42-44 uusi .indd 2 42-44 uusi .indd 2 9.6.2020 14.07 9.6.2020 14.07
CRUISEBUSINESS.COM MAGAZINE SPRING 2020 44 S W E D E N • P O L A N D • U S A • S I N G A P O R E • T I L L B E R G D E S I G N . C O M Delivering Dreams is our vision. For us at Tillberg Design of Sweden, that means a true guest focus and an aim to always not only meet expectations, but exceed them, surprise and create memories to last a lifetime. We design for the little boy on his first cruise, the married couple celebrating their 50th anniversary, the girlfriends on an escape from their everyday lives and every other guest looking for their dream vacation. We aim to challenge and innovate, always with a strong foundation in our over three hundred delivered projects. We are with our clients all the way from brand creation to space planning, compelling marketing visuals, signage, inspections and contact with consultants and suppliers. We happily discuss sustainability and when it’s time, we gladly help the cruise ship or yacht to a second life using our extensive refurbishment experience. Welcome to TDoS – world-leading marine design since 1964. 42-44 uusi .indd 3 42-44 uusi .indd 3 9.6.2020 14.07 9.6.2020 14.07
44 CRUISEBUSINESS.COM MAGAZINE SPRING 2020 designed to fit in this environment. If you ask about quality people, it's not easy to find them. We've seen people coming and leaving after one or two contracts. Niemelä: Do you see a difference between cargo vessels and passenger vessels? Where would the younger people rather go? Melnikov: When you talk about salary, I don't think there is a very big difference. But of course, people are looking for cruise ships, as there is more social life. Susino: Cruise ships provide a much better life. You work in a more friendly environment, you are visiting nice places. You are just not staying on a tanker or oil terminal or on the ocean only. You also have many options, such as better food, doctors and nurses. You have opposite sex crew members, which is also important for young people. On a cargo ship, you only work to save money and time to spend it when you are on vacation. On a cruise ship, you live off it. You don't need to wait until you go home. That's the major difference. Melnikov: Cruise ships have become like a town. Not really ships, but like a town. So there are all the facilities that you can find in this small village, which on a tanker is not possible. Susino: I can say, for example, that the fitness facilities are very important for many crew members. I don't use the fitness facilities myself, but I see one of my crew or the captain in there every single day. Melnikov: Many companies now have good fitness facilities, even on cargo ships. But the point is that on cargo ships, you need to force yourself sometimes. On a cruise ship, it's a general culture now to be fit. It comes also with, let's say, with general appearance. With a cargo ship, nobody really pushes you to wear a uniform, to shave every day. And then people get relaxed. In our line of work, it's very important to be disciplined. Niemelä: When you look at sourcing, are there emerging countries where you get more officers nowadays, some new countries where you find more people? Melnikov: When it comes to officers, you can hire from virtually everywhere, but you probably look at the countries with [maritime] traditions like the UK, Asia, Ukraine, Russia. It's also a question of tradition of education of seafarers. For example, in my country Russia, we have a lot of maritime schools. They are more than a hundred years old. So with traditions of education, that gives you better quality. Susino: You need to have [seafaring] traditions. For example, I come from a seafarers' family. So we're used to not seeing father every day, and it's fine. Some other places, especially in Europe, people cannot even imagine being for several months away from home. Melnikov: Yes, it’s a matter of culture. If you move to the Riviera in Italy, let’s say to Milano, there's a different culture. You cannot tell them to live away from home four, five months. Compared with 20 years ago, a contract was six to eight months. At the same time, stress has drastically increased, so the length of a contract onboard is coming down. Niemelä: How do you see sustainability? Have you created fuel savings by, let's say, moving slower between destinations? Melnikov: We have procedures for fuel saving. And every year, we try to do better. But this is a package of things that you can do, like optimizing the cruise itinerary with the speed, Susino: It also takes a lot of planning, because, for example, if you plan a Western Caribbean cruise, you can go either clockwise or anticlockwise. If you go clockwise, you will always have the wind and current against you. If you go anticlockwise, you always have current and wind with you. So it can make a difference. It looks very simple, but on a bigger scale, you will save a lot. Of course, instead of using three engines, we use two. Instead of using more power, we use less. And we also try to leave port as early as possible. Melnikov: It is also about the itinerary planning, because if you plan the cruise properly, the idea is to leave some time in the early evening and arrive early in the morning, If you plan it properly, then you always will have a required speed between 15 to 16 knots. Niemelä: Oceania has two newbuildings coming. Is there any technical aspect you would like to have changed from the Riviera? Susino: The only thing about this particular ship I would rather have are a little bit stronger thrusters. For seven years, we have managed to run the ship without major issues, but for technical aspects, yes, that would be a relatively cheap and easy solution to improve maneuverability. n 42-44 uusi .indd 4 42-44 uusi .indd 4 9.6.2020 14.07 9.6.2020 14.07
CRUISEBUSINESS.COM MAGAZINE SPRING 2020 45 B eyond simply being there, one of the greatest pleasures of expedition cruising is sharing experiences and impressions with others. For polar cruise ship operators today, the ability to deliver that enjoyment in real time via highspeed internet has moved beyond being a selling point to become part of guests’ expectations. Despite remote locations, guests also expect low-cost calls via satellite by right, rather than by request. In inaccessible places, reliable connectivity is critical to running the ship, including remote monitoring and support of systems onboard, while the crew that routinely works such voyages has its own needs to stay connected with family, friends and the online and real worlds. In June, the newly-built Oceanwide Expeditions vessel Hondius undertook its maiden Arctic voyage, culminating in a call at Longyearbyen on the island of Spitsbergen before returning to the vessel’s homeport in Vlissingen. Fully meeting expectations, according to the shipowner, was a new dual Fleet Xpress solution from connectivity partners Inmarsat Maritime and Alphatron Marine, installed to meet performance requirements in polar waters that only the Ka-band/L-band hybrid solution can achieve. The Hondius is the new five-deck flagship for one of the pioneers of expedition cruising. Using a fleet of existing icestrengthened passenger ships, Oceanwide developed the Basecamp Antarctica brand and became the first cruise company to connect travelers with Spitsbergen in Norway’s Svalbard archipelago. The Hondius, its first purpose-built ship, was delivered by Croatia’s Brodosplit yard in 2019 and meets Polar Class 6 requirements. With accommodations for 174 passengers, the ship has been finished in mid-century modern décor, in line with the distinctive cozy and informal atmosphere on which Oceanwide Expeditions built its reputation. However, far from “retro” is the connectivity package on board. CASE STUDY RELIABLE POLE-TO-POLE CONNECTIVITY POWERS HONDIUS Longstanding relations Oceanwide has longstanding relations with Alphatron and Inmarsat as solutions providers for its shipboard connectivity needs. “Because of our operations in polar regions we include various systems and providers, but Inmarsat and the Infinity solution have always been the basis,” says Chief Operating Officer Mark van der Hulst. Loyalty to the solution has been a consequence of systems and solutions reliability over time, as well as service levels, he adds. Meanwhile, some alternatives – such as connectivity offered via Ku-band VSAT – simply cannot reach the remote destinations served by Oceanwide’s ships, van der Hulst says. As the company’s fleet and cruise experience capabilities have evolved, so have its connectivity needs, the COO explains. ”Communication needs are changing continuously in today’s world. It’s good to have a partner such as Inmarsat, who is joining us on that journey. Because of our remote operating areas, the standard solution is not always possible. Inmarsat and Alphatron have worked together with us to find the optimal package.” Today, Oceanwide’s three-mast passenger sailing schooner and Arctic expedition ship the Rembrandt van Rijn operates the FB500 FleetBroadband service, allowing its 33 passengers and crew of 12 to take advantage of a 5GB data allowance. The owner has also installed the Fleet Xpress high-speed maritime broadband service onboard the Ice Class 1A vessel Ortelius and the Ice Class 1D Plancius, achieving what van der Hulst describes as “a good and direct contact” with the package, including the Infinity smartbox. The Infinity solution allows guests to control costs through prepaid email, internet and telephone access, while also generating an additional revenue stream for the owner, he says. Perfect solution “Fleet Xpress was the perfect solution for us with high-speed Global Xpress [GX] network availability in our Antarctic sailing region,” van der Hulst continues. “We know that in the high Arctic satellite communications are challenging, but our experience in the Antarctic with the other vessels is of 95% uptime at least. Sometimes we sail inside fjords and then we know a connection is not always available, but that is an accepted consequence of the areas we operate in. Additionally, we require stable remote access to the IT environment of the vessel in order to keep this up-to-date and in good shape.” Online monitoring possibilities have been an especially attractive capability, he adds. However, the refurbished vessels Ortelius and Plancius base their connectivity requirements on having capacity for 108 passengers apiece. The Hondius needs extended capability to match demand not only for 174 passengers, but for the 74-strong crew serving them. “Since the introduction of GX, we have worked together with Inmarsat and Alphatron to achieve the best solution for our onboard needs,” van der Hulst comments. “Because of the number of passengers onboard Hondius and the quality we want to provide, we chose the dual Fleet Xpress solution offered by Alphatron Marine, where the aggregate bandwidth available over the GX network is 16Mbps on the downlink and 4Mbps on the uplink over the GX network.”n Hondius in Svalbard Ph oto cre dit : Fr an kli n Br ae ck ma n 45indd.indd 3 45indd.indd 3 8.6.2020 8.03 8.6.2020 8.03
P eter Deer, who took over as Managing Director of Fred Olsen last year, recently recalled how he had watched passengers reboarding during a port of call. One passenger had some heavy bags and seemed to need assistance to negotiate the gangway. A security guard noticed this and quickly went to assist the passenger. “Yes!” Deer said to himself while watching what took place. A few days later, at a different port, a similar situation unfolded in front of Deer, who was again watching guests board the ship. Once again, someone seemed to be in need of assistance. A different security guard was on duty, and he did not make any effort at all to go to the assistance of the passenger – or even to ask if any help was needed. Speaking at a presentation in London in early March, Deer said that what he wants to do as Managing Director is to make sure that the service the company delivers is consistent at all levels. People should take initiative when they see that COMPANY PROFILE SMALL IS BEAUTIFUL FOR FRED. OLSEN Fred. Olsen Cruise Lines (FOCL) Managing Director Peter Deer says that focusing on a small-ship product and delivering consistent service at all levels of the organization are his goals for the company. By Kari Reinikainen they can do something to deliver better service, and this applies to all levels of the organization – ashore and afloat. Market research findings In the course of the last year, FOCL has conducted extensive market research to determine where its strengths and weaknesses lie. The research showed that 58% of the company’s passengers are repeaters; this was the highest reading among the peer group in the UK market and five percentage points higher than the number two line, which was P&O Cruises. It also showed there were 12.8 million people in the UK who had never cruised and who were unlikely to book a cruise in the future. Those who had never cruised but had replied by saying they are interested in doing so in the future numbered 3.2 million. A total of some 8 million people in the country had cruised before, but never with FOCL. This, Deer told his audience, means that there is a huge untapped market that the company needs to target for growth. FOCL scored below its peer group when it came to entertainment, daytime activities and shore excursions. However, importantly for FOCL, a net reading of 75% of the respondents stated that they prefer to cruise on a small ship all the time, rather than going on a small ship this time and a big ship the next time. Efforts to address the shortcomings that the research found are well under way. For example, in the line’s 2021-2022 program there are cruises that include visits to vineyards. In order to enhance the experience, the company will take its passengers to small, privately owned ones where they will not only have an opportunity to see the vineyard, but also to meet the owner. The company has also teamed up with a nature preservation organization called Orca, and one cruise next spring will follow the migration of whales and dolphins from Madeira to Iceland. Cornerstone of product differentiation The fact that an overwhelming majority of the respondents in the FOCL survey favor small ships has become a cornerstone in the company’s plans for the future. Deer and the company’s Chairman Fred. Olsen Jr., who spoke in a video message to the gathering in London, emphasized that the company would continue to operate small ships due to their strategic benefits. 46 CRUISEBUSINESS.COM MAGAZINE SPRING 2020 Peter Deer was named Fred. Olsen Cruise Lines’ Managing Director last year 46-47 olsen .indd 2 46-47 olsen .indd 2 4.6.2020 8.38 4.6.2020 8.38
CRUISEBUSINESS.COM MAGAZINE SPRING 2020 47 FRED. OLSEN CRUISE LINES’ FLEET Ship Gross tons Length, m Capacity Built Balmoral 43,537 218.2 1,350 1988 Black Watch 28,613 205.5 799 1972 Boudicca 28,388 205.5 880 1973 Braemar 24,344 195.9 920 1993 Source: Shippax Guide 2019 The company has identified seven main reasons why smaller ships offer an advantage over larger ones. The first of these is they can reach ports like Rouen or Seville and navigate canals such as the Kiel and Corinth that larger ships cannot. As the cruise industry has expanded and everlarger ships have entered service, dedicated cruise terminals have been built often far away from city centers. With smaller ships, FOCL can dock closer to these centers, which is the second of the seven advantages they offer. The third advantage also relates to access: It is easier to embark and disembark in the various ports of call, let alone at turnaround ones, when the number of people is lower. This cuts hassle and saves time, which again leaves more time for passengers to spend in each port. FOCL uses low-sulphur fuel and has eliminated single-use plastics from its ships, which reduces its environmental footprint, and the company is working on reducing its impact even further with additional measures. The smaller size of its ships helps these efforts, too, which is advantage number four. The fifth and sixth advantages of small ships relate to service: With fewer people onboard, service can be more personalized than on a very large vessel. Smaller numbers of people also allow the company to offer more personalized shore excursions, such as attending a ballet performance in St. Petersburg with the possibility of meeting the dancers after the performance. Finally, smaller numbers of passengers mean avoidance of overcrowding, the company’s research found. Changing dynamic in ship size These are all interesting observations, but perhaps the most striking points relate to what smaller ships, like the ones that FOCL operates, can do. There has been a tendency towards larger ships not only in the contemporary but in the premium and even the luxury segments of the cruise market, too. As the dimensions of luxury vessels has increased over time, this has meant that many of them are unable to reach Seville on the Guadalqivir river in Spain or dock at the English Embankment, a stone’s throw from the Nevsky Prospekt in St. Petersburg. The recent influx of cruise yachts, including expedition-type ships with icestrengthened hulls, has changed this dynamic to some degree. However, as in the luxury segment, these newly constructed vessels operate at a much higher price point than FOCL. One might, with good justification, say that access is an element of luxury. It is a different thing to walk down the gangway and find yourself in a city center than to start looking for a shuttle bus that will transport you from where the ship is berthed. Small newbuilds more expensive FOCL officials, including Deer at the presentation in London, have been frequently asked when the company would order newbuldings. Deer’s answer was that, at the moment, an order is not imminent. Paradoxically, the fact that FOCL has kept upgrading its existing ships (all have been lengthened and the Black Watch and Boudicca have received new engines) at the same time that many other companies have been ordering larger and larger newbuilds has helped FOCL to differentiate its product. Three of FOCL’s four ships have accommodations for fewer than 1,000 passengers and the Balmoral, the largest in the fleet, can still carry only 1,350. On the UK market, the closest comparison in terms of capacity might be Saga Cruises’ Spirit of Discovery and its soon-to-bedelivered sister ship, the Spirit of Adventure. Both accommodate 999 passengers, measure 58,250 gross tons and have a length of 236 meters. They cost $346 million to build, which translates to just over $346,300 per bed. With all-balcony cabin accommodations, the Saga ships sell at a much higher price point than FOCL. Should FOCL go for newbuildings, it would probably have to rethink what part of the market it wants to serve. As the evidence of Saga’s newbuilds suggests, even given their high-grade accommodations, small ships are much more expensive to build than 5,000 lower berth megaships. The MSC Virtuosa – a Meraviglia Plus unit of MSC Cruises currently on order in France – will have 4,842 lower berths and cost $850 million, which gives it a price per lower berth of $175,547. Nor does the secondhand market have very much available in the size range of the current FOCL fleet. And since the company’s ships tend to operate on lengthy cruise itineraries, its vessels should ideally have a long range and good storage facilities for provisions. Economies of scale and new ships have been powerful drivers of growth for the cruise industry, but as the industry has grown – and presumably will continue to do so after the present coronavirus crisis passes – its expansion has created openings for niche operators. Fred. Olsen Cruise Lines introduced its first ship, the now-retired Black Prince, in 1987, so it is a well-known, destination-focused brand. Management has now set the company on a course that should allow it to capitalize on that strength. n Balmoral is the largest ship in the Fred. Olsen’s fleet 46-47 olsen .indd 3 46-47 olsen .indd 3 4.6.2020 8.39 4.6.2020 8.39
W hen contracting such an original newbuilding project such as the Flying Clipper, first-of-a-kind issues are practically a given, especially for the first five-masted tall ship built to take passengers and not cargo or cadets. FOAK is the common moniker for such things that require innovative thinking in order to progress, and this newbuilding project threw up many obstacles. The simple reason is that the Flying Clipper is not only the largest sailing ship ever built but is based on the drawings of the France II, which was a 1913-built ocean-going barque whose purpose was to carry drybulk cargo. Therefore, many adaptations had to be conceived to meet 21st-century SHIP PROFILE FLYING CLIPPER BECOMES LARGEST SAILING SHIP The Brodosplit shipyard in Croatia has overcome hurdles galore to complete a ship that can only be described as unique and outstanding – even in the cruise industry where superlatives are par for the course. The result is a premium product that boasts several firsts for both the vessel and the yard alike. JOHN PAGNI got an exclusive tour and presents his findings. 48 CRUISEBUSINESS.COM MAGAZINE SPRING 2020 Flying Clipper at the shipyard Ph oto cre dit , all ph oto s: Jo hn Pa gn i 48-51.indd 2 48-51.indd 2 4.6.2020 8.41 4.6.2020 8.41
? CRUISEBUSINESS.COM MAGAZINE SPRING 2020 49 regulations and passenger needs even before the first line was drawn. “Planning started five years ago when we were approached [by Star Clippers owner Michael Kraft] to see if there was an opportunity to build this type of vessel, being so unique in every sense with no references,” explained Oliver Stanic´, Head of Brodoplit’s Initial Design Department (IDD). While the France II was a five-masted windjammer nickel-ore carrier that plied the seas between New Caledonia and Europe, Star Clippers’ intention was to use the same hull lines to build a passenger ship to the latest regulations. “It was a nice idea, but we did not know if it was doable. We concluded it was and agreed to develop the design and proceed with the basic plan followed by construction.” Multiple meetings ensued to design the specifications and GA (general arrangement). “The IDD’s biggest challenge was to arrange everything needed, fulfil all criteria – safety and environmental – in a limited space. I can now say it was a struggle and fight for each square millimeter – not just centimeters,” Stanic´ said. “Many solutions were adopted during design and construction as they could not be predicted.” Some specifications were fixed: a maximum passenger capacity of 340 in 150 cabins with a crew of 150 accommodated in another 74 cabins. However, that was the easy part. Even getting a flag society to approve the project and particulars was not easy, yet ultimately rather simple. This was because the Flying Clipper is not a replica, so no set standards just new procedures with analyses and standards provided in order to prove safety rules were met. Also involved from the start was Project Manager Radovan Na ?inovic´, with the design complexity of the project demanding the total focus of both men. “Germanischer Lloyd (now GL DNV) was the only classification society issuing certification for a passenger sailing ship.” The initial planning, according to Stanic´, spanned from May 2014 till the contract signing in October of that year. “It was a very intensive summer,” he said, adding that the yard was responsible for all the technical parameters and configurations after that ceremony. Although based on plans for the France ll, the Flying Clipper is longer and has a wider beam and is the largest square-rigged sailing ship ever. “Others use sails as auxiliary or extra propulsion, whereas this ship can operate at the same speed – 17 knots – using sails or engines and achieved 10 knots in trials in a moderate wind just with sails,” Nacinovic´ told CruiseBusiness.com Magazine. “It is a different concept vessel from a normal liner. The latter is a floating city, while Flying Clipper is small and everything had to be squeezed in. All the masts pass through the decks up to a height of 64 meters [70 yards], and the new Safe Return to Port (SRTP) rule came in for vessels over 130 meters [142 yards] long with three fire zones, which was a first for Brodosplit.” Altogether, 13 major systems aboard are redundant, with two engine rooms and multiple bulkheads, and the Flying Clipper can operate anywhere in the world within 1,400 nautical miles (1,600 miles or 2,593 kilometers) of the nearest port. Additionally the vessel has an ice-class rating of GL E1. The reconditioned Caterpillar engines meet Tier II emission regulations using marine diesel oil (MDO). “Compared with other vessels, Flying Clipper is very fuel efficient as she can operate 70% of the time on sails only.” The five masts with five yardarms each can carry up to 6,408 square meters (7,664 square yards) of sail, which are folded out/up semi-automatically. All the equipment is fully functional to its 10-degree heeling limit, and even at 45 degrees the vessel will remain stable. Although there no stabilizers, 1-metrewide bilge keels stretch 80 meters (87.5 yards) along each side below the Plimsoll line to prevent sudden rolling. In sudden gusts, the sail plan is adjusted automatically, and all sails can be used in winds up to Beaufort 6, which is equivalent to 25-31mph or 10.8-13.8 meters/sec. “It is a demanding ship to command so the navigational bridge, one of five bridges, is open. There is a traditional wheelhouse with chartroom forward. But the automation systems can steer the ship from port to port when initiated,” Na ?inovic´ explained. Since the ship will be anchored as much as berthed during its itineraries, boarding platforms are located both starboard and port. These will allow passenger access to gangways from the Clipper and Main Decks plus the main entrance. At the stern, a marina ramp can be lowered to create a platform about half a meter (half a yard) above the water for swimming, snorkeling and scuba diving via ladders. From concept to design As a genuine sailing ship, cabin design had to take sheer and camber into account or the curve from bow to stern and side to side, respectively. This inspired cooperation between Star Clippers and Zygmunt Choren´, Molindris & Associates (Greece) on taking the ship’s interiors from concept to detailed design, with Brodosplit being responsible for the workshop design and manufacture. The four Owner Suites are the only ones on the Sun Deck, highlighting their exclusivity, and have space aplenty for two occupants at 46 square meters (55 square yards) with light flooding in through their ample windows. All 32 Luxury cabins are on the Main Deck (Level 3) at 23 square meters (27.5 square yards) plus two smaller category two cabins. The Commodore and Clipper Decks below (levels 3 and 4) conOliver Stanic´ The bridge Radovan Na?inovic´ 48-51.indd 3 48-51.indd 3 4.6.2020 8.41 4.6.2020 8.41
50 CRUISEBUSINESS.COM MAGAZINE SPRING 2020 tain the bulk of the accommodations with 102 cabins measuring between 12 and 13 square meters (14-16 square yards). Only eight do not have a balcony or outside view via a window or porthole. The crew accommodations were most affected by the hull shape, being placed forward, and thus bunks were elevated and space below used for storage. The main dining area can seat all passengers simultaneously if needed on two levels amidships. Above and overlooking this on the Top Deck is the Piano Lounge Bar forming the third level of the main atrium, accentuated by light from one of the pools plus portholes to give a nautical effect. A 4.5-meter-deep (14.8-feet) dive pool and Jacuzzi on the Sun Deck use either sea or freshwater. To pass the time of day if the “seanery” proves insufficient (pun intended), a shop, library and spa zone are available. The latter has three massage rooms, Jacuzzi, hairdresser/beauty salon, Turkish hamam (steam room), Finnish sauna and even a snow room with falling snowflakes. The Function Room aft can seat 150 for presentations, films and performances with two large screens and a projector. Its rear features the diving pool and, due to the natural camber and sheer, forms a natural amphitheater with sunlight able to stream in or be blocked out at film or presentation time. “Activities aboard will be unusual with an ‘Old World’ feeling enhanced by dark colors and brass,” Na ?inovic´ said, an example of which is the Smoking Room. The Tropical Bar on the Main Deck is open but can be covered by a tarpaulin on the Sun Deck above, should protection from the elements be required. It has a bar surrounded by fixed tables and chairs for live entertainment and dancing, and is connected to the Piano Bar should the weather turn inclement. The main galley stretches over three decks – Intermediate, Commodore and Clipper – while on a fourth deck, Main, there are pantries for nighttime service, which meet all USPH regulations. This was another first for a Croatian yard, Na ?inovic´ said: “2017 saw new VSP/USP rules come into force. We complied and are now listed as one of the participants in drawing up future regulations.” Safety firsts Although accommodating a relatively small capacity of 450 and designed for SRTP, the Flying Clipper has an array of life-saving equipment to meet SOLAS regulations. The four sports boats intended for pleasure use or water-skiing holding 12 to 15 passengers. Also aboard are additional craft that can be deployed for search and rescue (SAR). Four lifeboats may be used as tenders with each able to take 150 people, although this is more comfortable for 80 when tendering to and from shore. Should they be needed in any unlikely event, there are four large life rafts that can be deployed, too, each capable of holding up to 35 persons. For any medical problems that might arise, there is an infirmary with three beds and a doctor on call. However, there are no passenger lifts, so the Flying Clipper is not for the physically limited. Three are three dumb waiters and an elevator for cargo and luggage. With five active helms, the Flying Clipper is well prepared for any technical mishap. Being a sailing ship means that its range is limited only by human restrictions. Practically speaking, though, a Beaufort 10-force storm (55-63 mph or 24.5-28.4 m/second) with a wave height of 9-13 meters (23-26 feet) becomes an issue for passenger comfort. “Wave height is not the problem, really,” Na ?inovic´ said, “It’s the wind speed.” The ship has two controlled-pitch propellers that can operate independently and give superior The bridge pictured from the deck 48-51.indd 4 48-51.indd 4 4.6.2020 8.41 4.6.2020 8.41
maneuverability using electrical propulsion. In fact, the vessel’s nimble maneuverability even under sail is due to its hull shape. Amazingly, from full speed to dead stop can be achieved in one-and-half ship lengths. During sea trials, the Flying Clipper made a course change at 13 knots full astern with only half a degree list. When performing a 90-degree turn automatically, the ship was out just five meters/ yards. The bow thruster-CPPs combination allows independent port entry and departure with no tug required. The vessel’s configuration means that 24 redundant separated HVAC systems control the air flow. Supplied by Denmark’s Novenco, each can lower the FLYING CLIPPER Technical information Built 2019, Brodosplit, Croatia Gross tonnage 8,770 Length 129 m Beam 18.5 m Maximum draught 6.40 m Passenger cabins 150 Crew cabins 71 Classification society GL DNV temperature to +18°C (64°F) with 55% relative humidity, while outside it can be 37°C with 85% humidity. Although just one chiller engine is needed, three are available. Similarly, Evac’s vacuum-based wastewater treatment is tripled due to SRTP and is described as being similar to those on jet aircraft. Solid waste is treated according to regulations and discharged ashore after passing through crushers, compactors. As Project Manager Na ?inovic´ noted, every prototype has its FOAK issues, so every yard likes to build a sister ship, which is easier to complete with fewer design issues. “If design is outsourced there are more difficulties, and we have experienced many changes, but luckily we have finalized a fully operational product.” Even so, over 500 equipment suppliers from around the world contributed to the construction of the Flying Clipper, with many European sub-contractors also involved, mainly Croatian. Materials were largely non-local, though Croatian manufacturers made the transformers, pumps, winches and masts, for example. Even the furniture for the crew and some public areas were made on-site at the yard. n CRUISEBUSINESS.COM MAGAZINE SPRING 2020 51 Dining room Shop and library 48-51.indd 5 48-51.indd 5 4.6.2020 8.41 4.6.2020 8.41
U ntil now, only one vessel of this type has been built, The World, which was constructed at Fosen in Norway in 2002, and which measures 43,188 gross tons and features 165 residences. A brainchild of the Kloster family, which also stood behind Norwegian Caribbean Line (as the presentday Norwegian Cruise Line was originally called), the original plan was for a much larger vessel of about 85,000 gross tons. However, financial issues led to a scaling down of the project. Once in service, the operation ran into financial difficulties and a restructuring of the shipowner’s finances had to be carried out. The World, together with most of the projected residential cruise vessels, looks quite a bit like an ordinary cruise liner from the outside. There are, however, significant differences between the two when it comes to the construction and technical requirements. The onboard residences are much larger than conventional cruise ship cabins. This means they cannot be built as modules in a factory, with toilets attached to the walls and even curtains hanging from their rails. “Fitting out of the residences equals fitting out of a small public area, and it is carried out on the spot onboard the vessel,” said Peter Albrecht, Senior Adviser at the Finnish consultant engineering group Elomatic. PROJECTS RESIDENTIAL CRUISE SHIPS MAKING A COMEBACK? Projects to introduce passenger vessels with residential accommodations – these might be called residential cruise ships – have continued to emerge over the years. Recent developments include projects from Ocean Residences and Storylines, which suggest that momentum is building in this field. By Kari Reinikainen 52 CRUISEBUSINESS.COM MAGAZINE SPRING 2020 Tomislav Debeljak, Chairman and CEO, DIV Group, Kristian Stensby, Chairman and CEO of Ocean Residences Development Ltd., and Zoran Kunkera, CBO, DIV Shipbuilding after announcing the Njord – pictured below 52-55.indd 2 52-55.indd 2 4.6.2020 8.43 4.6.2020 8.43
? CRUISEBUSINESS.COM MAGAZINE SPRING 2020 53 Construction differs from cruise ships “This is more expensive than using a modular construction method. On the other hand, on a conventional cruise ship there are far more cabins with the relevant equipment in a small space,” he continued. Bathrooms, living areas, balconies plus technical and safety installations from air-conditioning to fire-protection systems all require their own furniture and fittings. On a residential cruise ship, residences usually have their own galley. This has to be insulated in case of fire, an exhaust channel for fumes has to be provided and so forth. So, there are factors that both add to the construction cost of the cabin/residence accommodations and ones that reduce them. Generally speaking, Albrecht said, the two should largely cancel each other out. Residential cruise vessels carry far fewer people than most cruise ships of a comparable size. This means the need for lifeboat capacity will be smaller and stairways can be narrower. Public areas, such as restaurants and entertainment venues, have to accommodate fewer people on a residential cruise ship as well, which will in turn affect the total price of a projected ship, Albrecht concluded. The latest project to emerge in this segment and also one of the largest, the Njord, promoted by Malta-based Ocean Residences Development, is projected to have a gross tonnage of about 81,000, a length of 281.8 meters and 118 residences ranging from 116 to 800 square meters in size. A marina at the stern and other high-class facilities also distinguish the vessel. Designed by Espen Oeino and Jean-Louis Stutzman, the Njord is to be built at the Brodosplit and Kleven shipyards of Croatia’s DIV Group and is projected to enter service in 2024. Future-proofing Helge Hermundsgard, Business Development Manager at the classification society DNV GL, said in a statement: “The vessel will be powered by state of the art dual-fuel engines, with tank capacity for MGO [marine gas oil] and LNG [liquefied natural gas], batteries for hybridization, heat recovery systems, and advanced power management systems. To ensure that the vessel is future-proof, the engines and fuel tanks will be ready for easy conversion, to take advantage of future fuels with lower or neutral carbon footprint.” In addition, a professional oceanographic research laboratory is projected to be built onboard. “As residents travel the globe, they are united in a philanthropic purpose, creating positive change where it matters most. They will explore the planet, enjoy it in all its glory, and at the same time, they may want to give something back,” Kristian Stensby, CEO of Ocean Residences Development Ltd. was quoted by Forbes magazine as saying. Another residential ship project that has seen a lot of development in the past few months comes from Storylines. When the company first went public with its project, its intention was to convert an existing vessel to residential use. This has now been replaced by a purpose-built 55,000 gross ton vessel, to be known as the Narrative and powered by LNG. With 627 suites onboard, the ship is projected to offer 20 restaurants, 45 lounges, a marina and three pools plus a 54,000-square-foot garden farm. Tillberg Design of Sweden, the well-known architectural firm, is responsible for the design of the vessel. Images on the Storylines show crisp, contemporary public areas and residences with lots of wood flooring. Storylines points out that with an entry level price of $297,000, it is offering affordable living at sea. To attract potential buyers, it has set up a program that offers loans with an APR starting at 7.9%, an application fee of $750 and a loan-origination fee of only 2% of the purchase price due at closing, according to its website. The company has hired Dr. Paul Read – who has more than 25 years’ experience in the cruise industry from newbuilding and conversion projects – as project manager. So far, the concept design has been completed and tender evaluation plus plan approval are underway, Storylines said in a statement in the spring of 2020. 52-55.indd 3 52-55.indd 3 4.6.2020 8.43 4.6.2020 8.43
36 CRUISEBUSINESS.COM MAGAZINE SPRING 2020 Fitness and retirement-based concepts Capitalizing on the popularity of fitness and a healthy lifestyle, Blue World Voyages is proposing to convert an existing ship to take advantage of this trend at sea. The vessel is projected to feature 40 oneand two-bedroom Owners Club Residences, plus 200 double and 25 single suites. Prices start at $2.35 million, and Juan Poggi Design and Tomas Tillberg Design are responsible for the interiors. An image suggests that a Statendam-class ship of some 55,000 gross tons from Holland America Line is planned to be used. One public area deck would be converted to accommodate a gym and other training facilities, while a second deck would house a spa and other wellness facilities. An ocean-view solarium and therapy pool, meditation room, mud bath, reflexology, aromatherapy, electrolysis and body waxing are among the facilities and services that the company plans to offer. Land programs are projected to focus on sports and activities as well. Cruise Retirement is yet another company looking to enter the residential cruise market. Its intention is to rebuild a vessel originally constructed in Finland as the Azerbaidzhan for the Soviet Union in 1975 and rename it the Enchanted Explorer. SMC Design in the UK has created the interiors for the roughly 157 meter and 16,000 gross ton vessel, which would carry up to 550 residents and guests in its new role. The company, with headquarters in Miami and addresses in the UK and Australia, was founded in 2013, and on its website says that the vessel had been due to enter the Fosen shipyard for conversion in the autumn of 2019. As this has not happened, it would appear that the project has been delayed. Other residential cruise projects Utopia Residences first presented its projected 108,000 gross ton vessel of 296 meters in length more than a decade ago. The planned ship would have offered 190 residences ranging in size from 130 to 613 square meters, plus 206 hotel rooms in three grades. The U.S.-based company has cooperated with Samsung Heavy Industries in South Korea to turn the ship from concept to reality at a reported price tag of $1.1 billion. Elomatic in Finland 54 CRUISEBUSINESS.COM MAGAZINE SPRING 2020 Rendering of the Blue Ocean vessel Storylines – Marina Lounge 52-55.indd 4 52-55.indd 4 4.6.2020 8.43 4.6.2020 8.43
has provided technical consultancy and design services, while Tillberg Design of Sweden has been in charge of the interiors. Wilhelmsen Ship Management in Norway has been employed as technical manager, according to the Utopia Residences website. Residential Cruise Lines, based in Phoenix, Arizona, in the U.S., unveiled its 76,000 gross ton Magellan almost 15 years ago. The ship was projected to have 210 residences onboard, with price tags ranging from $2.8 million to $18 million, and was projected to cost $1.2 billion to build with an in-service date of 2011. Crystal Cruises unveiled a major expansion plan after its acquisition by the Genting Hong Kong group that included three 110,000 gross ton luxury vessels, which, in the original plans, featured 48 luxury residences. However, as the project evolved, gross tonnage of the three Diamond-class ships was reduced to 65,000 and the residences were axed. This is the only one of the major cruise residence projects that has been officially terminated. Perhaps the problems of The World – a pioneering venture in this field – played a role in subsequent events in the residential cruise ship segment. It has been an uphill struggle, and all the other projected vessels in this segment exist, at least for the time being, only on the drawing board. Ships are expensive to operate, they tend to depreciate rather than appreciate in value over time, and, to have a pleasant atmosphere onboard, a vessel should not sail with just a handful of residents occupying their maritime homes. However, time alone will tell if a developer will be able to come up with a right concept that can make money, as the concept itself is far from dead. n CRUISEBUSINESS.COM MAGAZINE SPRING 2020 55 Storylines – living room Blue Ocean – seawater pool Blue Ocean – Farm-to-table restaurant Blue Ocean – golf school Storylines – aft marina pool Storylines – resident’s lounge 52-55.indd 5 52-55.indd 5 4.6.2020 8.43 4.6.2020 8.43
DESTINATIONS NORTH EUROPEAN PORT PROJECTS CONTINUE Many North European cruise ports responded to the challenges presented by the Covid-19 crisis with a spirit of flexibility and expansiveness in the roles they play. At the same time, they have not wavered from their firm focus on the future under extraordinary circumstances. By Alan Lam 56 CRUISEBUSINESS.COM MAGAZINE SPRING 2020 Cruise Port Rotterdam has steadily became more popular destination Ph oto cre dit : Te ijo Ni em elä 56-59.indd 2 56-59.indd 2 9.6.2020 8.52 9.6.2020 8.52
? CRUISEBUSINESS.COM MAGAZINE SPRING 2020 57 A s in most other regions, cruise port development programs in North Europe hitherto had been driven by the evolving needs of a rapidly expanding cruise industry – the enlarging fleet, the increasing ship size, and, most importantly, the optimistic vision for future business. Given the prevailing crisis, it is not surprising that while existing and forthcoming projects are still broadly on course, they are affected and interrupted at least to a certain extent by this unprecedented global event. At the very least, port authorities will need to rethink their carefully conceived plans in the rapidly changing economic landscape. By mid-April, cruise activities of the entire global fleet had ground to a halt. Cruise lines began frantically shoring up their cash reserves by cancelling investment plans and cutting expenditures. As the Covid-19 pandemic spread, Europe soon emerged as one of the most infected areas in the world. With the industry’s future hanging in the balance, cruise lines expected a radically different kind of service from the ports. In North Europe, this meant that passenger and other shoreside provision services were replaced by ship lay-up requirements and other forms of technical support. It is fair to say that despite pledges of “working together,” many ports around the world fell on the first hurdle. Not only did cruise lines receive little or no support from them, they often were the source of distress. From Asia Pacific to the Americas, cruise ships were refused docking often based on irrational fear and false information. These ports not only failed to understand a basic principle of the maritime business, they also were found wanting on a humanitarian level. In fact, they created an unnecessary humanitarian crisis at a time when the world could least afford it. In hindsight, cruise lines will no longer be able to trust them – let alone depend on them – in the future. A new relationship will need to be forged once the pandemic has subsided and the world’s cruise ships set sail again. A good deal of soul searching among the ports will be required if they wish to remain in the cruise business. Thankfully, unlike their peers elsewhere, North European ports have not failed in this regard. In fact, organizations as such as Cruise Europe have stepped up their efforts in support of the industry during this crisis. Supporting role Supporting the cruise industry has always been central to the working philosophy of North European ports. In addition to increasing transparency and continuously raising service standards, the region’s port associations never cease to promote good communications and supply information relating to their services. Just over a year ago, in April 2019, Cruise Baltic launched an online news platform called “Port Development Overview” in order to provide cruise lines with relevant information on Baltic port development projects. Cruise Europe, too, has always been forthcoming in this regard. Amidst the current crisis, the association has stepped up its effort in identifying, supporting and responding to the sudden changes in priorities and service requirements of cruise lines. It believes that its role is more critical than ever in this time of crisis. Cruise Europe has fostered an intimate relationship with CLIA Europe in recent years. This should help its members identify specific needs of the cruise lines. While still largely responding to the sudden and unexpected shut down, already North European ports are looking to the post-crisis cruise business. They understand that the new order and new dynamics will be different than before, and things will need to be done differently. “Cruise Europe members are dealing with the present while reacting by looking at options and potential opportunities,” said Michael McCarthy, Chairman of Cruise Europe. “This may entail new strategies for the future of their business. The important point is to be ready for the recovery, because there are many things that can be done now that will be successful no matter what the future conditions.” For the moment, the role of the organization’s member ports is to support the industry through this ruinous crisis. Cruise Europe has been actively seeking ports with lay-up facilities on behalf of cruise lines. Ports such as Fredericia, Skagen, Nyborg, Edinburgh, Falmouth, Harlingen and Nantes have made themselves available for cruise vessel lay-ups and subsequent support. Many North European ports have also been providing assistance to cruise lines in repatriating crew members and catering to their needs, offering such services as providing free WiFi and medical care. North European ports appear to have been far more supportive to the industry than ports located elsewhere. This deliberate strategy will serve them well in the long run. Developing role Beyond the immediate situation, the impact of the Covid-19 pandemic on North European port development projects is as yet nebulous and unknowable. Due to the long-term nature of these plans, the initial impact may be limited to delays. But, being largely publicly funded projects, some of them may fall victim to potential financial fallout from the crisis. The global Thanks to the new lock, larger ships can now arrive in Ijmuiden 56-59.indd 3 56-59.indd 3 9.6.2020 8.52 9.6.2020 8.52
58 CRUISEBUSINESS.COM MAGAZINE SPRING 2020 economy, including that of North Europe, is expected to go into deep recession as the result of the pandemic. Inevitably, this will have an effect on investment in cruise port projects and upgrades, since supporting the cruise industry is usually low on the list of government priorities. “There are still more tough economic weathers to come,” said Richard Fain, Chairman and CEO of Royal Caribbean Cruises Ltd. “Realistically, the travel and tourism industry will probably be at the tail end of the recovery.” But there will be recovery, and North European ports are determined to play a corresponding role in this process. Betting on future growth and an increasing focus of international cruise lines on European markets – especially those of Germany and the UK – several of the region’s key cruise ports had invested in notable cruise development projects prior to the outbreak. Some of them have been completed, while others may now be severely interrupted by the crisis. Most of these projects were capacity and ship-size related. Moreover, they were planned when emission-related issues were already prominent in this part of the world. As a result, there were many environmental protection and sustainability aspects attached. In more ways than one, these projects aimed at future-proofing the ports in terms of the cruise business. But the pandemic may have changed everything, though some fundamental issues will remain and continue to be relevant. AMSTERDAM – In March 2017, the city proposed a new cruise terminal away from the city center. The new lock in Ijmuiden was completed in 2019. At 500 meters in length and 70 meters in width, it is the world’s largest lock, allowing larger vessels to reach Amsterdam. But this is a city where a controversial tax on cruise passengers is levied, which has prompted the immediate departure of a couple of cruise lines, while others have removed Amsterdam from their lists of potential ports of call. This is an issue that has been a subject of many heated debates and will still need to be addressed after the crisis. BELFAST – A new cruise terminal was officially inaugurated in July 2019, enabling better access to the city and the ability to host bigger ships. This was an historic event, as it was the first dedicated cruise terminal built on the island of Ireland. Belfast Harbour has invested more than £500,000 upgrading the quayside facilities, including a new Visitor Information Centre. The city received 148 calls from 35 cruise lines in 2019, an increase of 31% over the previous year. Clearly these figures will fall dramatically in 2020 and possibly in 2021. COPENHAGEN – A new cruise terminal located in Ydre Nordhavn, capable of processing 5,000 passengers at once, was set for inauguration in 2020. The project was approved in 2017 when Copenhagen’s importance as a leading cruise port and gateway to the Baltic region was on the ascendance. Since then, the Baltic’s cruise business has not grown as much as had been expected. But cruise traffic to and from Copenhagen has risen steadily with rising passenger and ship call numbers, as the port also serves the growing market of Norway. With the outbreak of the Covid-19 pandemic, the terminal may not open as planned. Like most other major European ports, Copenhagen Malmö Port has closed its cruise facilities during the crisis, keeping only its freight operation running. KIEL – In March 2018, the port announced that it would build a seven-million-euro second cruise terminal at Ostseekai, capable of accommodating two large cruise ships. Construction began in November, and the facility was opened in time for the 2019 season. Like the city’s other passenger ship berth at Norwegenkai, the new terminal is located only 300 meters from the city center. LE HAVRE – In 2019, the port scheduled a major extension project for its Terminal 12 (quai P. Callet), which would be enlarged from 600 square meters to 2,400 square meters. It also planned to provide shore power on the river cruise pier, quis de Marseille. Having aggressively marketed itself as the “Gateway to Paris,” Le Havre has expanded its facilities rapidly in recent years. It now offers a wide range of services to passengers and crew, including multilingual maps and brochures, free WiFi and cars and bikes for hire. The city is also a river cruise gateway that promotes its local attractions. Le Havre has maintained a highly visible cruise marketing effort all over the world, but its future prospects now very much depend on the duration of the Covid-19 pandemic. LIVERPOOL – The original planning permission for the city’s 50-million-pound new cruise terminal was granted in April 2018. Initially, the completion date had been set for 2021, but the project suffered a subsequent delay because of environmental issues, with potential underwater noise during construction and its impact on marine life being the main concern. In March 2019, the UK Government's Marine Management Organisation ordered a fresh round of public consultation. Final approval for the project was issued in September 2019 for a 10,000 square meter, two-story terminal to be built on a deck suspended over steel piles (to lessen the environmental impact). In October, it was reported that the project would be further delayed by one year because the port was still awaiting two separate pieces of approval from the government. PORTLAND – The Queens Pier improvement project was given the green light in late 2018. The central piece of the plan was to deepen the seabed from eight to 11 meters in order to facilitate the operations of larger cruise vessels. PORTSMOUTH – A 19-million-pound revamp of the port’s cruise facility, which included a berth extension, was due for completion in 2020. It would enable the port of Portsmouth to process up to 2,000 passengers at a time. The project is now likely to be delayed by the current crisis. The latest focus of the port has been on facilitating crew repatriation operations on behalf of Viking Cruises. Construction Le Havre offers 20th century architecture listed as World Heritage site Ph oto cre dit : M SC Cr uis es 56-59.indd 4 56-59.indd 4 9.6.2020 8.52 9.6.2020 8.52
CRUISEBUSINESS.COM MAGAZINE SPRING 2020 58 work was continuing under challenging circumstances, which included social distancing among workers, as well as supply and resource deficiencies. At the time of writing, the project was still set for completion in May 2020. TALLINN – In October 2019, the port announced a public procurement for the planned construction of a state-of-the-art, environmentally friendly, 4,000-squaremeter multifunctional cruise terminal in the immediate vicinity of the existing cruise berths in the Old City Harbour. The project was scheduled for completion in 2021. Under the current circumstances, this timeline now looks questionable. Passenger traffic to and from Tallinn has been among the most affected by the pandemic. Future role As with the wider cruise industry, the ambitions of North European ports have been stunted by the Covid-19 pandemic. For the time being, they now serve a very different and relatively peripheral role within the industry. Like the cruise lines, their focus during April and May was on humanitarian and repatriation operations – a radical departure from the distasteful attitudes of those ports that turned away cruise ships during the crisis. This will serve them well in the future, as cruise lines, their guests and crew will remember the good will and the role these North European ports played in a time of need. What role cruise ports in North Europe will play in the future is as yet unknown, but it will largely depend on the speed of recovery and the shape of the global cruise industry once the crisis has passed. One thing is certain: So far, the relationship between these ports and the cruise lines has not been damaged. They also appear to be proactively responding and adapting to the changing needs of the cruise lines. In doing so, North European ports gained a better insight into the cruise industry and all the various challenges it must face. Recent and current port development projects in the region, if not derailed by the crisis, will better prepare North Europe for the cruise business of the future. For now, as they adjust to a new normal, the ports of the region are preparing to re-open with stricter hygiene and social distancing measures. And even as they respond to the immediate crisis, they continue to future-proof their cruise facilities in preparation for the eventual recovery. “I have no doubt that a recovery will come and we will be stronger and better,” said Cruise Europe’s McCarthy. “This may entail new strategies for the future of their business. The important point is to be ready for the recovery, because there are many things that can be done now that will be successful no matter what the future conditions.” n CRUISEBUSINESS.COM MAGAZINE SPRING 2020 59 Ph oto cre dit : M SC Cr uis es Portland is a thriving cruise destination located on the UK’s south coast Hamburg is popular location for cruise shipping events. MSC Grandiosa was christened in Hamburg 56-59.indd 5 56-59.indd 5 9.6.2020 8.52 9.6.2020 8.52
60 CRUISEBUSINESS.COM MAGAZINE SPRING 2020 Ph oto cre dit : Te ijo Ni em elä I n its recent heyday, the ferries operating between Finland and Estonia carried millions. Just last year the total was over eight million people, which meant it easily eclipsed the cross-Channel traffic between the UK and France. In addition, around 1.5 million vehicles, buses COVID-19 Road map back to cruising CAN FERRIES SHOW THE WAY FORWARD? The Covid-19 pandemic has brought the cruise industry to a standstill, with the entire global fleet laid up until authorities give the all-clear. Meanwhile, the world’s most popular international ferry route between Helsinki and Tallinn re-opened to ordinary foot passengers on June 1. CruiseBusiness.com Magazine’s John Pagni went on one of the first crossings to observe the measures in place to ensure health and safety while returning some commercial sense of viability to a once hugely popular experience. and trucks were transported. It is a major trade artery, with ships designed to give passengers a short taste of the good life on the waves. As both Estonia and Finland are EU member states in the Schengen Area, a ferry ride between the two countries typically has been as easy as taking a train or bus to another country, with the exception of checking in and boarding 20 minutes before departure – no passport control, customs or any official procedures, barring the occasional spot check (usually acting on a tip-off). All this changed on March 18, when the Finnish and Estonian governments ordered their borders to close except for trade. Ferries stopped completely between Helsinki and Stockholm, while others operated a truncated schedule carrying cargo only, with excess tonnage laid up. Tallink is the biggest operator on this line and kept its flagship – the LNG-powered fast ferry Megastar – close to its original schedule, making six crossings daily taking two hours to cover the 50 miles (80 kilometers). This powerful ship does this year-round in all conditions, having a high ice classification. Contactless check-in The Estonian company has been a pioneer in its IT usage for bookings and Megastar docked at its homeport in Tallinn, Estonia 60-62.indd 2 60-62.indd 2 9.6.2020 9.51 9.6.2020 9.51
? CRUISEBUSINESS.COM MAGAZINE SPRING 2020 61 check-in to make the process as seamless as possible. These adjustments allow passengers to travel between Tallinn and Helsinki with a minimum of procedure and more importantly, little or no human contact needed. Checking in online up to 24 hours before sailing results in an email or text on a smartphone containing the appropriate QR Code, meaning that no face-to-face contact or use of an automatic check-in machine at the terminal is necessary. Just wave the smartphone screen at the terminal barrier and – voilá! – it opens. Now that travel on this route has resumed, additional measures were also evident. On entry into the terminal there were hand-disinfectant dispensers, as there were near the ferry sales offices and before and after going through the entry barriers, while signs everywhere including on the floor gave instructions on behavior and distancing. The vast terminal concourse was a portrait in impeccable adherence to the rules. Only people travelling together were seated adjacent or close by. Others kept their recommended distance even on the narrow balcony where smokers gathered. The same respect for the rules was maintained during the voyage. “We have reduced the seating and enlarged the space in between,” explained Hendrik Väli, Megastar Intendent. This was made easier by the government instruction that ships could carry only half their maximum capacity – which in the Megastar’s case was 2,800. And though it was a cold June day, Väli reported that 880 passengers were travelling on this voyage, while the lowest number when the full lockdown was in force had been just twelve. Unlike rivals operating on this service, Tallink has kept all food and beverage points of sale open (subject to strict rules) except for á la carte service, so the buffet was not a buffet as most would know it. All cold food was prepared and packed ready to be picked up by the diner. All hot food was verbally ordered and given to customers (who distance-queued) on a plate by staff who wore masks and surgical gloves. However, it was voluntary for both passengers and non-food handling crew to use hand and face protection. Masks could be purchased from the info desk for €1 each. Väli stressed that surfaces are cleaned many times during a voyage. Onboard adjustments The children’s play areas, video-game room and entertainment stages were closed during the voyage, and dancing was prohibited. The ship’s slot machines were open for business, but only every second or third machine depending on their proximity. Väli explained that the Megastar’s onboard cleaning equipment consists of 20 automatic disinfectant machines supplemented by manual dispensers next to all cash registers and doorways. He also pointed out that although From top to bottom: Social distancing is respected outdoors and indoors; bar service is through a plexi-screen everywhere; service at buffet counter where staff must wear gloves and face mask Ph oto cre dit : Jo hn Pa gn i 60-62.indd 3 60-62.indd 3 9.6.2020 9.51 9.6.2020 9.51
62 CRUISEBUSINESS.COM MAGAZINE SPRING 2020 the Megastar has only 47 cabins (such accommodations are usually considered unnecessary for such a short voyage), they are now proving popular. Drivers were treated as passengers, too, with special closed-off areas. And while humans have had to adapt, pets were still able to travel as before. Crew, meanwhile, has been cut according to capacity. During a normal peak summer season there would be about 200 crewmembers onboard, which has been reduced by about 50 on the hotel side. “The technical personnel is unaffected, of course,” Väli said. Lastly, officialdom was omnipresent. All passports were checked on arrival in Tallinn before exiting the security area, and non-EU-country holders were asked about their country of origin. Similarly, Finnish Border Guards checked passports and IDs once passengers had passed through the automatic gates in Tallinn before being allowed to embark. This was reinforced in Helsinki, where another check of every passenger and their documents was performed; passengers were questioned about their itinerary if they had been outside Estonia. Lessons for cruising So where does this leave the cruise industry? Obviously, the 50% cut in passenger capacity – and the associated on-board spending that will be lost with it – will place a considerable drag on cruise line revenue, and prices may have to be increased to compensate. But perhaps more importantly, the limits on socializing – the very essence of a good passenger experience on a cruise ship – will be a major challenge going forward. Equally daunting will be official processing when visiting ports-of-call, another staple attraction of cruising. Group visas and advance passport processing could be managed, but getting passengers ashore in tenders and onto specially prepared coaches is one aspect of the cruise experience where IT cannot replace the physical facts of travel life. In short, a Covid-19 vaccine is the most likely solution to the obstacles of cruising in a post-pandemic world. Even then, pre-embarkation testing will probably be needed along with adequate insurance. These conditions will have to be met before the industry can expect a return to the days of cruising as usual. n From top to below right: Keeping a respectful distance is easy when capacity is cut by 50%; Megastar Intendent Hendrik Väli; just one of many Port of Helsinki Covid-19 posters; floor signs signal distance to be kept between passengers before automatic entrance to terminal 60-62.indd 4 60-62.indd 4 9.6.2020 9.51 9.6.2020 9.51
CRUISEBUSINESS.COM MAGAZINE WINTER 2020 63 “A s things begin to return to normal after months of quarantine, we can all use a quick getaway. When we return, our onboard experience may look a little different to our guests,” said Oneil Khosa, CEO of Bahamas Paradise Cruise Line, in a statement. “The wellness of our passengers and crew members remains our top priority, and as such, passengers can expect enhanced sanitization procedures from embarkation to disembarkation so that they can enjoy a relaxing, safe, stress-free getaway. We look forward to welcoming everyone onboard soon.” As the only cruise line that departs from the Port of Palm Beach, with the only 2-night shortcruise product on the market, Bahamas Paradise Cruise Line is implementing a variety of new processes to ensure the health and safety of all onboard. The new measures encompass protocols for guest accommodations, common areas onboard the ships, recreational facilities, food service and more. Capacity controls Highlights of the announcement include capacity controls aboard ship. Two passenger stateroom decks will be closed to reduce crowding and the number of staterooms in use will be limited to reduce onboard capacity by 40%. Social distancing practices for guests will be enforced during embarkation and disembarkation, and terminal staff members will be monitored and required to wear masks and remain behind safety plexiglass for minimal contact. Passenger luggage will be disinfected prior to onboard delivery, while touch-free temperature checks and pre-boarding health declarations will be mandatory for all guests. Online check-in will be utilized, so guests can receive designated arrival times at the cruise terminal COVID-19 SMALL LINE ANNOUNCES POST-COVID PLANS Florida-based Bahamas Paradise Cruise Line has announced a detail plan of how it intends to keep crew and passengers safe once the U.S. Centers for Disease Control (CDC)’s “no sail” order is lifted. As the cruise line prepares for its anticipated return, it is putting travelers’ health and safety front and center by rolling out an extensive list of new preventative measures designed to ensure the wellness of both passengers and crew. to streamline embarkation and minimize crowds in port. Once onboard, guests will find that cabins that have been sanitized with hospital-grade disinfectants. Vacant cabins will be fogged and hallways wiped down twice daily. Guest bathrooms will be disinfected with heavy-duty alkaline cleaner, while timely housekeeping will turn over cabins with sheets and linens cleaned and disinfected at sterilizing temperatures. Common areas will receive similar attention: All onboard public areas will undergo a two-tier sanitization process, which includes cleansing and fogging using hospital-grade disinfectant. Elevators will be disinfected every two hours, public areas and facilities up to ten times per day. Frequently touched areas, including handrails, table-tops, and door handles will be sterilized every hour. All floors will be disinfected with a heavy-duty neutral PH floor cleaning solution, and all onboard areas will include fully stocked self-service hand sanitizer stations. Food, entertainment and recreation All shipboard restaurants and bar areas will be cleaned and sanitized three times a day. Selfservice in the buffet will be suspended; all food and beverage will be served by crew members wearing face masks, hats, aprons and gloves. Tables and seating areas will keep guests six feet apart to facilitate social distancing. Stringent procurement guidelines will be enforced, and products from certain regions will be prohibited. The ship’s theater will be thoroughly sanitized before and after each show, while Kids’ Club facilities will be cleaned twice per day. Spa and gym areas will be sanitized before and after each use, including common areas within these facilities twice daily. Casino players per table will be restricted to ensure social distancing and slot machines will be positioned to separate players. Once ashore, guest will find that tour buses for excursions will only be filled to 50% capacity, sanitized frequently, and tour operators will be trained using guidelines from the World Health Organization (WHO). Crew and medical practices New practices and standards for crew members will also be put in place, including twicedaily temperature checks. All frontline crewmembers will be required to wear face masks, and all food service crew serving guests in the buffet will be required to wear disposable hats, aprons, masks and gloves. Housekeeping and food and beverage crew will be required to wear both disposable gloves and masks. The disposal of all gloves and masks will align with the CDC’s guidelines. Furthermore, all crew will be required to use antibacterial hand soap for at least 20 seconds to sanitize their hands. In the ship’s medical center, isolated sections will be made available for ill guests or those who are concerned that they have been exposed to Covid-19. Contaminated items and medical waste will be properly sealed and disposed of according to the CDC’s guidelines, and used face masks and protective equipment will be disposed of at designated central collection points. Medical equipment and waste bins will be thoroughly cleaned, disinfected and washed twice daily with hospitalgrade disinfectants. Finally, the line will be implementing a fresh-air ventilation system to ensure healthy air quality in all onboard cabins and common areas. All air filters and cooling coils will be thoroughly checked, cleaned and replaced as needed. n 63-67 .indd 1 63-67 .indd 1 9.6.2020 8.45 9.6.2020 8.45
? 64 CRUISEBUSINESS.COM MAGAZINE WINTER 2020 V iking’s entry into U.S. river cruising does not come as a big surprise. Viking’s Chairman Torstein Hagen has publicly discussed plans to enter the U.S. domestic market for several years. It will, however, be a completely different operation compared to Viking’s other river operations globally. To operate domestically in the U.S., the vessel has to be built in the U.S., owned by a U.S. company and staffed with Americans. There are currently two domestic cruise lines operating on the Mississippi – American Cruise Lines and American Queen Steamboat Company. Both of them are in expansion mode as well. Additionally, a few other lines operate on intra-coastal cruises in different parts of the U.S. In making the announcement, Hagen pointed to the company’s 23 years of experience in the river cruise business. “We invented the concept of modern river cruising, first on the rivers of Russia and then in Europe. Since then, many people have come to appreciate the unique exploration that comes with river cruising – but currently there are very few options to do so on American rivers,” Hagen said. RIVER CRUISES VIKING EXPANDS ON YET ANOTHER FRONT Despite the Covid-19 pandemic bringing global cruise operations to a halt, Viking announced expansion on another front. Chairman Torstein Hagen confirmed the company’s entrance into Mississippi River cruising with a tailor-made, U.S.-built ship, which is to debut in August 2022. The development came just over two months after the company announced it would also launch expedition cruises. By Teijo Niemelä “Our guests are curious travelers, and they continue to tell us that the Mississippi is the river they most want to sail with us. The Mississippi River is closer to home for many of our guests, and no other waterway has played such an important role in America’s history, commerce and culture.” Scandinavian style on the Mississippi Compared to European rivers, the Mississippi has fewer limits on ship size. Therefore, Viking will be able to offer many of the features found on its larger ocean ships, first introduced in 2015, that cannot be included aboard its European river vessels. When the Viking Mississippi begins sailing in 2022, it will accommodate 386 guests in 193 all outside cabins. Interiors will feature clean Scandinavian design, so public spaces will be very familiar to regular Viking guests who have sailed with the company before, either on the river or ocean ships. Currently under construction in Louisiana, the Viking Mississippi will be 450 feet (137 meters) long and 75 feet (22.8 meters) wide and will have five passenger decks. There will be seven cabin categories that range from 268 to 1,024 square feet. Cabins will be located on Decks 2, 3, 4 and forward on 5. All cabins will feature private veranda or French balcony, king-size bed with luxury linens, large Torstein Hagen 63-67 .indd 2 63-67 .indd 2 9.6.2020 8.45 9.6.2020 8.45
CRUISEBUSINESS.COM MAGAZINE WINTER 2020 65 Viking Mississippi features modern exterior and Scandinavian interior design Explorer Suite 63-67 .indd 3 63-67 .indd 3 9.6.2020 8.45 9.6.2020 8.45
66 CRUISEBUSINESS.COM MAGAZINE WINTER 2020 flat-screen interactive TV, mini-bar, largeglass enclosed shower, heated bathroom floor and 24-hour room service. Deck 1 will be fully reserved for public rooms with a large outdoor seating area – The Bow – forward from the Explorers Lounge, which also extends to Deck 2. Behind the Explorers Lounge will be another Viking signature area, The Living Room (on ocean ships it occupies the atrium area), the ship’s multi-purpose lounge with a bar, library and venue for live music. The aft part of Deck 1 will be occupied by The Restaurant – the ship’s main dining room. This deck also will feature a full 360-degree promenade. The rest of the public areas will occupy the second half of Deck 5. The River Cafe will serve a menu ranging from American classics to Mamsen’s Norwegian specialties, in indoor or outdoor seating. The venue will also be used for alternative casual dining in an al fresco setting. Behind the River Cafe, the Aquavit Terrace will provide an American barbecue experience. Aft-most on the top deck will be the Sun Terrace with Infinity Plunge Pool, similar to infinity pools found on Viking’s ocean ships. Viking’s Mississippi River cruise fares will include one complimentary shore excursion in each port-of-call, all onboard meals, and all port charges and government taxes. Other complimentary amenities will include beer and wine with lunch and dinner service, alternative dining, self-service launderettes, 24-hour room service and free WiFi. Itineraries to seven states The Viking Mississippi will sail voyages on the Lower and Upper Mississippi between New Orleans and St. Paul. Currently, scheduled ports-of-call span seven U.S. states in Louisiana (Baton Rouge, Darrow, New Orleans and St. Francisville); Mississippi (Natchez and Vicksburg); Tennessee (Memphis); Missouri (Hannibal and St. Louis); Iowa (Burlington, Dubuque and Davenport); Wisconsin (La Crosse and Red Wing); and Minnesota (St. Paul). The Viking Mississippi will offer four different itineraries during its 2022-2023 inaugural season: the 7-night America’s Heartland from St. Louis to St. Paul, 7-night Heart of the Delta from New Orleans to Memphis, 7-night Southern Celebration roundtrip from New Orleans and 14-night America’s Great River from New Orleans to St. Paul. n River Cafe The design highlight of Viking Mississippi – The Bow The Living Room 63-67 .indd 4 63-67 .indd 4 9.6.2020 8.45 9.6.2020 8.45
twitter.com/SMMfair #SMMfair youtube.com/SMMfair smm-hamburg.com/news linkedin.com/company/smmfair facebook.com/SMMfair smm-hamburg.com the leading international maritime trade fair driving the maritime transition 2 – 5 feb 2021 hamburg SMM fuels change in the maritime industry by bringing together its most influential players and presenting solutions that make shipping greener, smarter and safer. Be part of it and see what’s technologically possible, connect with peers and get fresh impetus for your business: • 2,200+ exhibitors from the entire maritime value chain • 50,000 industry professionals from 120+ countries • Top-notch conferences and first-class networking events see what make s SMM the #1 smm-ha mburg.c om/trail er E X P L O R AT I O N OTHER VESSELS www.sunstoneships.com Wherever Your Destination, SunStone Can Take You There. E X P L O R AT I O N As you explore farther and farther into the frontier, we’re there to support you. Our clients and partners depend on SunStone’s innovation to facilitate their ongoing exploration and expansion. Our INFINITY class vessels are a leap forward in technology, design, safety and cost. Join us as expedition cruising enters the INFINITY-era. M/V OCEAN ATLANTIC M/V SEA SPIRIT M/V GREG MORTIMER M/V OCEAN DIAMOND M/V OCEAN ENDEAVOUR M/V QUEST M/V OCEAN NOVA IS THE ENGINE THAT DRIVES INNOVATION. — EDITH WIDDER, O CEANO GRAPHER — Follow The Sun. M/V OCEAN ADVENTURER Our INFINITY class vessels are a leap forward in technology, design, safety and cost. Join us as expedition cruising enters the INFINITY-era. OCEAN DISCOVERER Delivery September 2022 OCEAN EXPLORER/ODYSSEY Delivery Jan. 2021/Mar. 2022 INFINITY-CLASS VESSELS | OCEAN VICTORY, Delivery October 2020 OCEAN ALBATROS Delivery October 2022 OCEAN ALBATROS AURORA II Delivery September 2021 AURORA II Sunstone Ships.indd 1 10/01/2020 10:18 425x297%20kansi .indd 2 425x297%20kansi .indd 2 9.6.2020 7.08 9.6.2020 7.08 twitter.com/SMMfair #SMMfair youtube.com/SMMfair smm-hamburg.com/news linkedin.com/company/smmfair facebook.com/SMMfair smm-hamburg.com the leading international maritime trade fair driving the maritime transition 2 – 5 feb 2021 hamburg SMM fuels change in the maritime industry by bringing together its most influential players and presenting solutions that make shipping greener, smarter and safer. Be part of it and see what’s technologically possible, connect with peers and get fresh impetus for your business: • 2,200+ exhibitors from the entire maritime value chain • 50,000 industry professionals from 120+ countries • Top-notch conferences and first-class networking events see what make s SMM the #1 smm-ha mburg.c om/trail er E X P L O R AT I O N OTHER VESSELS www.sunstoneships.com Wherever Your Destination, SunStone Can Take You There. E X P L O R AT I O N As you explore farther and farther into the frontier, we’re there to support you. Our clients and partners depend on SunStone’s innovation to facilitate their ongoing exploration and expansion. Our INFINITY class vessels are a leap forward in technology, design, safety and cost. Join us as expedition cruising enters the INFINITY-era. M/V OCEAN ATLANTIC M/V SEA SPIRIT M/V GREG MORTIMER M/V OCEAN DIAMOND M/V OCEAN ENDEAVOUR M/V QUEST M/V OCEAN NOVA IS THE ENGINE THAT DRIVES INNOVATION. — EDITH WIDDER, O CEANO GRAPHER — Follow The Sun. M/V OCEAN ADVENTURER Our INFINITY class vessels are a leap forward in technology, design, safety and cost. Join us as expedition cruising enters the INFINITY-era. OCEAN DISCOVERER Delivery September 2022 OCEAN EXPLORER/ODYSSEY Delivery Jan. 2021/Mar. 2022 INFINITY-CLASS VESSELS | OCEAN VICTORY, Delivery October 2020 OCEAN ALBATROS Delivery October 2022 OCEAN ALBATROS AURORA II Delivery September 2021 AURORA II Sunstone Ships.indd 1 10/01/2020 10:18 425x297%20kansi .indd 2 425x297%20kansi .indd 2 9.6.2020 7.08 9.6.2020 7.08
Visit viking.com , call 1-800-2-VIKING or see your Travel Agent M ODER N I Z I N G M ISSISSIPPI E X PL OR AT IO N Only with Viking, the small ship experts. CST: #2052644-40 Make your dreams come true in 2022 and be among the first to explore America’s mightiest of waterways. CruiseBusiness.com REVIEWING CRUISE BUSINESS GLOBALLY Magazine SPRING 2020 NORTH EUROPEAN PORTS Development projects continue JAMAICA The Port Authority of Jamaica’s newly built Port Royal Cruise Port received its inaugural call by Marella Cruises’ Marella Discovery 2 in January 2020. Port Royal joins Falmouth, Montego Bay, Ocho Rios and Port Antonio to strengthen port-ofcall options in Jamaica and is fitted with a unique SeaWalk – a removable and reusable floating quay, which requires minimal space to install. Royal Caribbean turns 50 Covid-19 sinks industry financials Are residential ships making a comeback? 425x297%20kansi .indd 1 425x297%20kansi .indd 1 9.6.2020 7.08 9.6.2020 7.08