Fosen Yard to replace main engines on Fjordline twins

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Written by Teijo Niemelä Teijo Niemelä

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Published: 31 December 2022 31 December 2022

Fosen Yard has entered into a contract with Fjordline to replace the main engines on the car and passenger ferries Stavangerfjord and Bergensfjord.

Both vessels are built at Fosen, respectively NB 87 & 88, and delivered to Fjordline in 2013/2014, then with LNG-powered engines from Rolls Royce, considered to be the most future-oriented and environmentally friendly solution at the time. But Russia’s invasion of Ukraine has led to an energy crisis where the price of LNG has increased tenfold just since last summer and Fjordline felt compelled to take action to ensure profitability on the routes they serve.

After considering many options to achieve sustainable operation in the long term, Fjordline ended up replacing the existing engines with new ones from Wärtsilä, which can use both LNG and marine gas oil (MGO) as fuel. This will lead to much better control of expenses and provide great flexibility when the price of LNG normalizes.

Stavangerfjord and Bergensfjord operate on Bergen-Stavanger-Hirtshals and Langesund-Hirtshals and will be taken out of these routes early in the new year, in order to resume them before the 2023 summer season.

Rauma shipyard begins construction of second ferry to Australia

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Written by Teijo Niemelä Teijo Niemelä

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Published: 21 December 2022 21 December 2022

On Tuesday 12 December 2022, the start of production of another car and passenger ferry was celebrated in Rauma, Finland, when the construction of Spirit of Tasmania V began with a traditional steel cutting ceremony. The production of the first vessel began in February 2022 and its keel-laying ceremony was held in late October.

The Spirit of Tasmania sister vessels are set to operate on the world’s southernmost sea route between mainland Australia and Tasmania. Despite the fact that it is on the other side of the globe from the Rauma shipyard, the collaboration between the shipyard and the shipping company has proceeded smoothly and there is strong trust between the two parties.

“As the production of the first Spirit of Tasmania vessel is proceeding well, it is wonderful to continue the production of the line in good collaboration with the client. They need two new ships for the route, and it is great that the ships will be finished closely together,” says Mika Heiskanen, CEO, RMC.

The design and construction of both vessels have proceeded according to the agreed schedule.

Spirit of Tasmania (TT-Line Company), the purchaser of the vessels, is a significant player in maritime transport between mainland Australia and Tasmania. Currently, the Spirit of Tasmania-named vessels carry around 450,000 passengers each year.

The vessels are tailor-made for the challenging open sea route

The new vessels will operate on an extremely challenging route across the Bass Strait between Geelong, Victoria, and Devonport, Tasmania. The ferries have been specially designed to undertake this specific route. They will sail continuously between the ports and pass each other at sea.

The ferries are equipped with modern dual fuel engines capable of using liquefied natural gas (LNG). They can carry 1,800 passengers each and their gross tonnage will be approximately 48,000 metric tons. The new vessels will replace two Finnish-built sister ships from the 1990s.

“As the new dimensions indicate, these ships are much bigger than the current vessels – featuring substantially larger capacity for passengers, passenger vehicles and freight – and will be a major contributor for the economy of Tasmania for 30 years to come,” says Bernard Dwyer, CEO and Managing Director of Spirit of Tasmania.

The large-scale project will create a total of around 3,500 person-years’ worth of employment at the Rauma shipyard. Simultaneously, the shipyard is also working on the design and production of new multipurpose corvettes for the Finnish Defence Force.

Spirit of Tasmania IV is planned to be delivered in the first quarter of 2024, and Spirit of Tasmania V in late 2024.

MSC Cruises announces plans for fourth U.S. homeport at Port of Galveston

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Written by Teijo Niemelä Teijo Niemelä

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Published: 21 December 2022 21 December 2022

MSC Cruises – the world’s third largest and fastest-growing cruise brand – is announcing the next phase of its U.S. expansion with plans for a new homeport at the Port of Galveston. The cruise line is in negotiations with the Galveston Wharves on the development of a fourth terminal at the port, which led to both entities signing a non-binding memorandum of understanding (MOU) outlining parameters of a potential agreement for the development and operation of a terminal at piers 16-18.

Rubén A. Rodríguez, President, MSC Cruises USA, said, “The prospect of developing a new homeport in Galveston is exciting because it represents a big step in our ongoing North American expansion. Bringing our modern, glamorous ships to Texas would provide even more access and opportunities for guests and travel advisors to experience the future of cruising with MSC Cruises and our unique European style. We look forward to productive discussions with the Galveston Wharves as we chart MSC’s future in the US market.”

Rodger Rees, Galveston Wharves port director and CEO, said, “Adding MSC to our family of cruise lines homeporting from Galveston would continue to elevate our status as a top U.S. cruise port and boost the regional economy. It also allows MSC to reach a new market of millions of cruise passengers in the Central U.S. We’re excited about the huge potential of this mutually beneficial public-private partnership.”

“Our popularity as a cruise homeport is reflected in the growth of our passenger counts and sailings. In 2023 we forecast a record 362 sailings, the highest in the port’s 22 years as a cruise port,” Rees said. “This is great news for the port and our region because our cruise business is a major revenue and jobs generator.”

MSC Cruises currently sails from Miami and Port Canaveral, with year-round service from New York City beginning in April of 2023. Headquartered in Geneva, Switzerland, the privately held company employs a staff of more than 30,000 globally. It is the market leader in Europe, South America, the Persian Gulf region and Southern Africa, with a strong presence in the Caribbean, North America and Far East markets.

Regional economic benefits

The local impact of the port’s 2022 cruise activity includes 3,500 jobs, $568 million in local business revenue, and $73.5 million in local purchases by passengers and crew. A fourth cruise terminal is forecast to generate an additional 925 jobs, $177 million in revenues, and $21 million in local purchases.

Rees added that a fourth cruise terminal is included in the port’s 20-Year Strategic Master Plan, designed to guide major capital and maintenance projects to maximize assets; optimize the port’s cruise, cargo, commercial and lay business sectors; and boost the regional economy with jobs and revenues.

Carnival sees first quarter net loss, adjusted EBITDA to improve each quarter

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Written by Kari Reinikainen Kari Reinikainen

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Published: 21 December 2022 21 December 2022

Carnival Corporation & plc, the world’s largest cruise shipping group, expects a net loss for the first quarter of its financial year but said adjusted EBITDA should improve each quarter in the 2023 financial year

The company expects $250 to $350 million of adjusted EBITDA for the first quarter of 2023 and a sequential improvement compared to 2019 in each quarter of next year as it continues to close the gap.

“In addition, the company expects to generate significant positive adjusted EBITDA in 2023. The company expects an adjusted net loss of $750 to $850 million for the first quarter of 2023,” Carnival said in a statement.

The company's depreciation and amortization forecast for the first quarter of 2023 is $0.6 billion little changed from the final quarter of the 2022 financial year. The 2023 full year forecast is $2.4 billion compared to $2.275 billion in 2022.

Booking volumes nearing 2019 levels

“Booking volumes during the fourth quarter of 2022 for 2023 sailings are nearing 2019 comparable booking levels, with November booking volumes exceeding 2019 levels.

“The company's North America and Australia ("NAA") segment's fourth quarter 2022 booking volumes for 2023 exceeded the comparable period in 2019. The company's Europe and Asia ("EA") segment's fourth quarter 2022 bookings for 2023 were lower than the comparable period in 2019, Carnival said.

However, reflecting the closer-in booking pattern of its Continental European brands, its fourth quarter bookings for fourth quarter sailings significantly exceeded the comparable period in 2019. “Further, the company continues to see an extension of its EA segment's booking curve, facilitating more optimal revenue yields over time,” Carnival said.

The company's full year 2023 cumulative advanced booked position is at higher prices in constant currency, normalized for future cruise credits, as compared to strong 2019 pricing with a booked position that is higher than the historical average. “During the second half of 2022, the company significantly increased its advertising activities to support booking volumes,” Carnival said.