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MV Werften secures EUR 193 million to complete Crystal Endeavor and fund shipyard operations till March 2021

Details: Written by Teijo Niemelä Teijo Niemelä; Category: Top Headlines Top Headlines; Published: 09 October 2020 09 October 2020

MV Werften announced this week that the yard has received an EUR 193 million loan to complete the Crystal Endeavor for delivery and keep the shipyard operations till March 2021. MV Werften and all its employees are very appreciative of the support of the State of Mecklenburg-Vorpommern and the Federal authorities in receiving this support. All the funds from the loans will be used in Germany for MV Werften's shipyards.

Genting Hong Kong (GHK), the parent company of MV Werften has invested about 2 billion euros in the shipyards and the construction in progress of the Global Dream and Crystal Endeavor and had created about 3,000 direct jobs in the State plus thousands of indirect jobs in the cruise shipbuilding supply chain and the local economies of Wismar, Rostock and Stralsund.

GHK had been a very good client of Germany, ordering and taking delivery of 22 cruise ships built in Germany, almost half of Germany’s output from 1996 for the cruise brands which were under its control.

In 2016 GHK bought the yard group – and named it as a homage to the state Mecklenburg-Vorpommern – MV Werften – in order to build ships for its three cruise brands as the orderbook from existing shipyards were full and the earliest delivery was seven years into the future.

GHK invested in MV Werften, previously Nordic Yards, to build cruise ships because they have built the two AIDA cruise ships and cruise ferries. All the 3,000 employees of MV Werften are nationals of the European Union, with the majority German nationals with the rest from the European Union.

“GHK is an exemplary investor and fully relies on German management in the operations of MV Werften. We are very appreciative of the very significant investment, probably one of the largest made in Germany, and the creation of thousands of direct and indirect jobs for Germany and the EU," says Peter Fetten, the Chief Executive Officer. “MV Werften built four luxurious river ships for Crystal Cruises and they have been rated the best river ships in Europe. We are now completing the Crystal Endeavor, which will be again be the most luxurious polar class expedition yacht in the world for Crystal Cruises," he added.

“It is the impact of the COVID-19 that stopped the world’s cruise fleet, including GHK, that MV Werften has to turn to the State and Federal Government for support under the WSF, which had been established by the German Government to assist industries impacted by COVID-19,” added Carsten Haake, the Chief Financial Officer of MV Werften. “Since 2016, GHK had fully supported the shipyard and had not withdrawn any of the invested funds from Germany.”

GHK cruise ships are mainly deployed in Asia and Dream Cruises, one of its brands, is the world’s first cruise ship to start ocean destination cruises in Taiwan since July 26.

Yesterday Genting announced that the World Dream, built in Germany and the 9th best largest resort ship as rated by the Berlitz Guide to cruising, will restart domestic cruising on 6th November. This will be followed by Genting Dream starting cruises in Hainan and China in mid-November. GHK had two Star Cruises ships chartered to the Singapore Government to accommodate post-COVID patients without any incidents. GHK’s is one of few companies which did not have any COVID-19 cases on any of its cruise ships due to the high standards of health and safety developed with over 30 years of cruise experience and is the first cruise line to receive the CIP-M certification by DNV GL for infection prevention, including
COVID-19, for the marine industry.

World Dream to start cruises from Singapore 6 November

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 08 October 2020 08 October 2020

Genting Cruise Lines, whichis part of the Genting Hong Kong group, said that its Dream Cruises unit will be the first cruise brand to restart service in Singapore with World Dream, as she makes her homeport debut from 6 November 2020 onwards.

“World Dream will also be the newest built cruise ship to homeport in Singapore, offering a series of brand new 2 and 3-night “Super Seacation” experience for Singapore residents during the school and year-end holidays,” the company said in a statement.

Dream Cruises resumed operations with the successful deployment in Taiwan in July, which will now be followed by Singapore. “Working very closely with the Singapore government, Dream Cruises was granted approval by the local authorities to start a pilot based on the company’s stringent and enhanced health and safety protocols, complemented by its exemplary safety track record during its first two months of operations in Taiwan,” the company said.

With the safety and well-being of our guests and crew being the highest priority, Dream Cruises has completely re-examined and enhanced all of its health, hygiene and operating protocols to ensure the safest environment for everyone across its fleet and in accordance with the local authorities’ guidelines including health screening processes prior to embarkation, disembarkation and safe distancing measures on board.

It also includes thorough sanitisation and disinfection and enhanced hygiene practices for guest cabins, crew member quarters, public areas and recreational facilities; safe food and beverage handling procedures; and, 100% fresh air ventilation in guest and crew cabins, as well as public spaces.

“Due to the invaluable support and confidence of the Singapore authorities in Genting Cruise Lines, the inaugural homeport deployment of World Dream in Singapore marks another important milestone in the recovery process post COVID-19 for the local cruise tourism industry,” said Michael Goh, President of Dream Cruises.

Carnival says cumulative advance bookings for second half 2021 at higher end of historical range

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 08 October 2020 08 October 2020

Carnival Corporation & plc, the world’s largest cruise shipping group, said that cumulative advanced bookings for the second half of 2021 capacity currently available for sale are at the higher end of the historical range, although prices have softened.

Bookings in the first half of 2021 reflect expectations of the phased resumption of its guest cruise operations and anticipated itinerary changes. “As of August 31, 2020, the current portion of customer deposits was $2.1 billion with $0.1 billion relating to fourth quarter sailings," it said.

Approximately 60% of bookings taken during the three weeks ended September 20, 2020 were new bookings as opposed to future cruise credit (FCC) re-bookings, despite minimal advertising or marketing,” the company said in a trading update. The 60% figure marks an increase of five percentage points from three months to 31 August.

Carnival said it believes this demonstrates the long-term potential demand for cruising. Pricing on these bookings are lower by mid-single digits versus the second half of 2019, on a comparable basis, reflecting the effect of FCCs from previously cancelled cruises being applied. The company continues to take bookings for both 2021 and 2022.

As of 20 September, approximately 45% of guests affected by the company's schedule changes have received enhanced FCCs and approximately 55% have requested refunds. The figures were unchanged from three months to 31 August.

Total customer deposits balance at August 31, 2020, was $2.4 billion, the majority of which are FCCs, compared to total customer deposits balance of $2.9 billion at May 31, 2020. The decline in customer deposits is consistent with previous expectations, Carnival said.

Carnival Corporation & plc fleet to become more efficient on optimisation

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 08 October 2020 08 October 2020

The efficiency of ships in the fleet of Carnival Corporation & plc, the world’s largest cruise shipping group, will improve as a result of measures to optimise its fleet, the company said in a trading statement.

As stated earlier, the company plans to dispose of 18 ships, ten of which have already left the fleet. “In total, the 18 ships represent approximately 12% of pre-pause capacity and only three percent of operating income in 2019,” the company said..

The sale of less efficient ships will also result in future operating expense efficiencies of approximately two percent per available lower berth day (ALBD) and a reduction in fuel consumption of approximately one percent per ALBD.

“Based on the actions taken to date and the scheduled newbuilding deliveries through 2022, the company's fleet will be more efficient with a roughly 13% larger average berth size per ship and an average age of 12 years in 2022 versus 13 years, in each case as compared to 2019,” it said.

Carnival expects only two of the four ships originally scheduled for delivery in 2020, following the start of the pause, to be delivered prior to the end of fiscal 2020, including Enchanted Princess which was delivered last week. Carnival group member P&O Cruises have said Iona to the company this year.

The company currently expects only five of the nine ships originally scheduled for delivery in fiscal 2020 and 2021 to be delivered prior to the end of fiscal year 2021.

In addition, Carnival currently expects nine cruise ships and two smaller expedition ships of the 13 ships originally scheduled for delivery prior to the end of fiscal year 2022 to be delivered by then.

Hong Kong not included in Royal Caribbean Group standstill extension to 30 November

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 08 October 2020 08 October 2020

Royal Caribbean Group has extended a standstill of operations until 30 November, but this does not include Hong Kong.

“Our primary goal continues to be a healthy return to service for our guests, crew and the communities we visit. As we work with the CDC and others toward this shared goal, Royal Caribbean Group will be extending the suspension of sailings to include those departing on or before November 30, 2020, excluding sailings from Hong Kong,” the company said in a statement.

The company did not say if this meant that operations in Hong Kong could resume before the end of next month. However, speakers at the Seatrade Cruise Virtual event suggested that cruising from Hong Kong could restart soon.

“Celebrity Cruises will also be suspending their full 2020/21 Winter program in Australia and Asia. Additionally, Azamara will be suspending their 2020/21 Winter sailings throughout Australia & New Zealand, South Africa and South America,” the company said.