News

Cruise & Ferry newbuilding recovery slower than anticipated - STX Europe

Details: Category: Top Headlines Top Headlines; Published: 21 February 2012 21 February 2012

Owners of cruise ships and ferries contemplate new orders, but they are held back by uncertainties regarding the global economy and problems related to funding of these projects, says STX Europe, which builds passenger tonnage at yards in France and Finland.

“The Cruise & Ferries business area had revenues of NOK 2 537 million in the fourth quarter, up from NOK 1 883 million in the corresponding period of 2010. The fourth quarter EBITDA was NOK -24 million. The full year EBITDA is NOK 137 million (2010: NOK -473 million), which is an improvement of NOK 610 million compared to last year,” the company said in a statement.

“The market for Cruise & Ferries in general is experiencing uncertainties both in relation to the global economic situation and a challenging climate for the funding of newbuildings. There is an increased activity among the cruise and ferry operators and reports show that the traditional cruise market is growing and that there are expectations for further development, especially within new markets,” the company continued.

However, trading conditions remain challenging: “The demand for further new buildings are expected to slowly improve but at a slower pace than previously anticipated due to the uncertainty in the global economy. The demand for more advanced and innovative technology is increasing especially in relation to fuel efficiency, safety and environmental friendliness. Market conditions, however, are expected to remain challenging.”

As a result, the business area will continue to focus on diversification into other market segments where the yards have considerable technological background, expertise and other potential competitive advantages. This includes vessels for naval operations, offshore related constructions and renewable energy/wind. The focus in ice-breaking/arctic tonnage remains a key strategic focus, predominantly in Finland.

“There is a strong focus to secure more orders and to improve its cost base and long term competitiveness. STX Europe is committed to remaining a world leading shipbuilder of cruise vessels, ferries and other specialized vessels at its yards in Finland and France.” The improvement in performance of the business area compared with 2010 is largely attributable to improved cost base and higher utilisation of the yards’ capacities in both STX France and STX Finland. The financial performance in the business area is still not satisfactory and measures are taken to further improve this.

The total order intake for the quarter was NOK 1 345 million. At the end of fourth quarter 2011, the Cruise & Ferries business area had an order backlog of NOK 16 290 million, compared with NOK 14 126 million at the end of 2010. The order backlog, including vessels in production, consisted of 14 vessels. All ongoing projects are currently proceeding according to plan. The business area has a strong focus to secure more orders and further strengthen their long term competitiveness.

Carnival to increase capacity in San Juan, to have a second ship in Europe 2013

Details: Written by Teijo Niemelä Teijo Niemelä; Category: Top Headlines Top Headlines; Published: 17 February 2012 17 February 2012

Carnival Cruise Lines will increase capacity on its 7-night Southern Caribbean itineraries from San Juan, as well as on its 4- and 5-night cruises from Miami, deploying newer, larger ships in both markets.

The 2,974-passenger Carnival Valor will launch a five-port, 7-night schedule from San Juan beginning Feb. 10, 2013, becoming the newest and largest ship to operate year-round from that port.

Carnival Valor will replace the 2,758-passenger Carnival Victory, which will reposition from San Juan to Miami to assume the Carnival Destiny's 4- and 5-night cruises beginning Feb. 4, 2013.

Additionally, Carnival Destiny will offer a 16-day transatlantic crossing departing Miami Feb. 4 and arriving Civitavecchia (Rome) on Feb. 20, 2013. Featured ports on the crossing include Ponta Delgada (Azores), Portugal; Malaga, Spain; Monte Carlo, Monaco; and Genoa and Livorno, Italy. Details on the Carnival Destiny's deployment following the trans-Atlantic crossing will be announced at a later date.

UK cruise bookings soar 28% above year-on in latest week

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 17 February 2012 17 February 2012

UK cruise bookings have staged a strong recovery in latest week and year to date they lag 3% behind of the same point in time in 2011in the market in the wake of the Costa Concordia disaster, Travel Weekly reports in an email newsletter.

“Sales of cruises for summer 2012 rose sharply last week, with industry analyst GfK Ascent reporting a 28% improvement on the comparable week a year ago. The surge in bookings followed a serious decline year on year during the preceding three weeks, despite some improvement at the start of February,” the report said.

“GfK Ascent recorded a 29% fall in cruise bookings year on year in the week immediately after the tragedy, and a 24% reduction in the week to January 28 which followed. Sales picked up in the third week to February 4, but remained 15% down on the comparable period in 2010.”

“Last week’s surge in bookings appears to signal a recovery, with the cruise market for the season to date just 3% down on the same time last year. The sector remains ahead of the summer 2012 holiday market as a whole, which GfK Ascent reports as 9% down year on year to date. However, the decline is in line with reduced capacity,” the report said.

Several cruise operators have offered incentives in the UK in the recent past to trigger new bookings in the form of free upgrade to balcony accommodation and generous on board credit etc.