RCCL liquidity measures could mean lower ship upgrade spending

Royal Caribbean Cruises Ltd (RCCL) said on Tuesday that it would focus on maintaining liquidity, which could mean cutting expenditure on ship refits.

“The company is pursuing additional actions to improve its liquidity by reducing capital expenditures, operating expenses and taking other actions to improve liquidity by at least a further $1.7 billion in 2020. The company is also planning reductions to the 2021 capital expenditures and operating expenses,” RCCL said in a statement.

On the capital expenditure front, rescheduling deliveries of newbuildings would be a complex matter, so that investment in upgrades of existing ships could be slowed down. However, the company did not explicitly say this.

Viking Line sees substantial coronavirus effect, axes 2020 guidance

Viking Line, the listed Finnish cruise ferry company, expects the coronavirus outbreak to significantly impact its business and the company has therefore axed its previous guidance for full year 2020 results.

“As a result of the coronavirus (COVID-19), operating conditions in our markets have deteriorated significantly. It is still too soon to quantify the impact on results since there is great uncertainty regarding developments. Therefore, our earlier business performance outlook no longer applies,” the company said in a statement.

In the 2019 full year result statement the company had said: “We expect that the passenger volume trend will be stable and that net sales per passenger will increase somewhat. Fixed-price agreements for a portion of the Group’s bunker (vessel fuel) costs for 2020 mitigate the risk of increased bunker costs. The trend for salary expenses is considered to be moderate. Income during the third quarter will be crucial to the Group’s earnings for the full financial year.”

“Competition is still tough in Viking Line’s markets, where operating conditions are affected by squeezed prices and volumes. There is a risk that economic growth in the Asian market will come to a standstill due to the coronavirus. Overall, operating income for 2020 is expected to be on a par with operating income in 2019.”

Updated: Regal Princess allowed to dock on Sunday, no coronavirus

Monday,  09 Mar:

Regal Princess has docked in Fort Lauderdale in Florida on Sunday evening after the coronavirus tests for two crew members that had recently transferred from Golden Princess that has an outbreak had come back negative, media reports say.

Sunday 08 Mar:

Regal Princess, scheduled to call at Port Everglades this morning and depart this evening, is being held offshore at the direction of the U.S. Coast Guard and the Centers for Disease Control and Prevention (CDC) until the CDC completes a review of crew history and testing of crewmembers who recently served aboard the Grand Princess, the ship currently being held off of San Francisco. The cruise line has advised they have cancelled today’s sailing of this ship.

"Port Everglades is fully operational for all other cruise and cargo activities," the Port said in a statement.

Princess Cruises cancels Royal Princess' departure from Los Angeles

Princess Cruises has decided to cancel Royal Princess' cruise from Los Angeles due to the VOVID-19 fear. The company provided following information on Saturday, March 7:

"Yesterday Princess Cruises was requested by the U.S. Centers of Disease Control and Prevention (CDC) to share information about a crew member who previously served on Grand Princess and transferred to Royal Princess fifteen days ago. The crew member is now 15 days past last potential exposure to COVID-19, has always remained asymptomatic, and had no known contact or exposure to other guests and crew who became symptomatic.

After sharing all information and details about the crew member, the CDC approved clearance for Royal Princess yesterday with no restrictions placed on the vessel. However late this afternoon, they informed us of their decision to issue a no-sail order until the crew member was tested for COVID-19. We have unfortunately been unable to obtain this test given the late timing of the request. As the crew member testing process and timing is uncertain, we have cancelled the cruise. We share in your disappointment and offer our sincere apologies. The safety, health and well-being of our guests and crew is always our top priority."

Updated March 8, 2020: Grand Princess to dock in Oakland

The State of California has been working in partnership with the federal government to aid in the safe return of passengers from the Grand Princess. The entire mission is centered around protecting the health of the passengers, and ensuring that when the passengers disembark, the public health of the United States, the State of California, and partner communities is protected.

Together, the United States Government and the State of California asked the City of Oakland and the Port of Oakland to partner in this mission. The mission will be a joint federal and state effort, with local support. The federal government and its contractors are already preparing the site for disembarkation. As soon as tomorrow, the ship will begin disembarking passengers at the Port of Oakland. The ship will only be docked during the duration of the disembarkation.

These passengers will not be released into the general public. Passengers who require acute medical treatment and hospitalization will be transported to health care facilities in California. If passengers do not require acute medical care following health screenings, those who are California residents will go to a federally run isolation facility within California for testing and isolation, while non-Californians will be transported by the federal government to facilities in other states. The crew will be quarantined and treated aboard the ship, but importantly, the ship will only stay in Port of Oakland for the duration of disembarkment. This ship will depart Oakland as soon as possible and will remain elsewhere for the duration of the crew’s quarantine.

Almost 1000 of the ship’s passengers are Californians. They have been through a great deal of stress and were potentially exposed to this virus through no fault of their own.

After careful review of all options, the Port of Oakland was selected as the best site for the ship to disembark. There are limited docks that will be able to dock a ship of that size, and the Port of Oakland location was the easiest to seal off, securely move passengers toward their isolation destinations and protect the safety of the public.

“The City of Oakland, Alameda County and the Port of Oakland are stepping up in a major way, and their residents deserve universal praise. They are showing the world what makes our state great – coming to the rescue of thousands of people trapped aboard this ship and helping tackle a national emergency,” said Governor Gavin Newsom.

“Oakland’s role in this operation is to support our state and federal authorities as they conduct a critical public health mission to help those impacted by the COVID-19 virus,” said Mayor Libby Schaaf. “I appreciate Governor Newsom’s leadership and have been assured no one will be quarantined in Oakland, nor will any passengers be released into the general public. True to our community values, Oakland is a safe harbor for all.”

“The Port will provide assistance as necessary for the safe disembarkation of the passengers,” said Danny Wan, Director of the Port of Oakland. “There has been close coordination to assure that port operations, port workers and the community are not impacted.”

“The health of our Bay Area community is our top concern, and we’ve been working across federal and state agencies to protect it,” said Colleen Chawla, Alameda County Public Health Officer.

“With a thousand California residents on the ship, it only makes sense that we all work together to help those in this crisis and ensure that they are quarantined, tested and make their way home when it is safe to do so,” said Senator Nancy Skinner.

“California values mean protecting the public and helping those in a crisis. We’re doing both. We are committed to supporting our federal and local health officials to help our fellow Californians get tested and be healthy, and to prevent any exposure to the general public,” said Assemblymember Rob Bonta.

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"Princess Cruises can confirm personal protective equipment (PPE), which included gloves and face masks, was delivered to Grand Princess by U.S. Coast Guard helicopter yesterday evening (March 6). The PPE will supplement the supply already onboard," the company said in a statement. On march 6, the U.S. government confirmed 21 COVID-19 cases onboard.

Separately, a critically ill U.S. guest and their travel companion were medically disembarked from Grand Princess earlier this morning by a U.S. Coast Guard cutter. They are being transported to a shoreside medical facility for treatment unrelated to COVID-19.

Grand Princess is at sea currently approximately 50 miles off the coast of San Francisco. The Captain of Grand Princess and the Princess Cruises port operations team continue to await specific directives from state and local response operations about where the ship will proceed and will continue to closely follow the guidance of the U.S. Centers of Disease Control (CDC), California Department of Public Health and other authorities.

"The safety, health and well-being of our guests and crew is always our top priority, and we continue to make every effort to ensure they are safe and comfortable while they remain onboard."