News

Royal Caribbean Group and Norwegian Cruise Line Holdings collaborate to develop enhanced health and safety standards

Details: Written by Teijo Niemelä Teijo Niemelä; Category: Top Headlines Top Headlines; Published: 06 July 2020 06 July 2020

Cruise industry leaders Royal Caribbean Group and Norwegian Cruise Line Holdings Ltd. announced a collaboration to develop enhanced cruise health and safety standards in response to the global COVID-19 pandemic.

The companies have asked Governor Mike Leavitt and Dr. Scott Gottlieb to serve as co-chairs of a newly formed group of experts called the “Healthy Sail Panel.” The panel is tasked with collaboratively developing recommendations for cruise lines to advance their public health response to COVID-19, improve safety, and achieve readiness for the safe resumption of operations.

The expert panel has been working for nearly a month and will offer its initial recommendations by the end of August. The cruise lines said its work will be “open source,” and could be freely adopted by any company or industry that would benefit from the group’s scientific and medical insights.

“This unprecedented disease requires us to develop unprecedented standards in health and safety,” said Richard D. Fain, chairman and CEO of Royal Caribbean Group. “Bringing aboard these respected experts to guide us forward demonstrates our commitment to protecting our guests, our crews and the communities we visit.”

“We compete for the vacationing consumer’s business every day, but we never compete on health and safety standards,” said Frank Del Rio, president and CEO of Norwegian Cruise Line Holdings Ltd. “While the cruise industry has always had rigorous health standards, the unique challenges posed by COVID-19 provide an opportunity to raise the bar even higher.”

“Health and safety are the highest priority for all CLIA cruise line members as demonstrated by this initiative on the part of two of our largest members. We commend this and parallel efforts of all of our members, large and small, who are working tirelessly to develop appropriate protocols based on input from health authorities and medical experts in the U.S. and abroad,” said Kelly Craighead, president and CEO of Cruise Lines International Association (CLIA).

Fain and Del Rio said they initiated the panel to assure the plans they will submit to the U.S. Centers for Disease Control and Prevention (CDC) and other regulators apply the best available public health, science and engineering insights. The work of the panel will be shared with the entire industry and regulators.

“In convening the Healthy Sail Panel, we sought the participation of a diverse group of leading experts in areas of science and public health that are directly relevant to the considerations listed by the No Sail Order,” said Governor Leavitt. “We view our work as a profoundly important public health effort. The health and safety of passengers, crew, and the communities that cruise ships visit will be the principal focus of this project.”

Dr. Gottlieb said, “We know that the public health issues that must be addressed are complex, and in some areas, tackling them will require novel approaches. Our goal in assembling this team of leading experts was to develop best practices that can improve safety and provide a roadmap for reducing the risks of COVID-19.”

The panel is co-chaired by Governor Leavitt, former Secretary of the U.S. Department Health and Human Services (HHS), and Dr. Scott Gottlieb, former commissioner of the U.S. Food and Drug Administration (FDA). The panel’s members are globally recognized experts from various disciplines, including public health, infectious disease, biosecurity, hospitality and maritime operations.

Baltic operator Birka Cruises to cease operations

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 03 July 2020 03 July 2020

Birka Cruises, which is part of Rederi AB Eckero group in Finland, has decided to cease operations, the company said in a statement.

The company, which has mainly sold its cruises on the Swedish market, has concentrated on one-night trips between the Swedish capital, Stockholm, and Mariehamn on the Aland Islands, which belong to Finland.

Birka Cruises blamed the economic aftermath of the Covid-19 outbreak and uncertainty regarding the development of the tourist market for its decision to cease business that it had launched in 1971. It was forced to cease sailings in March and to lay off most of its staff.

Birka Cruises has operated the 34,924 gross ton Birka Stockholm that was purpose built to the company in 2004. Unlike the cruise ferries that operate in the region, the 1,800 passenger capacity ship does not have a drive through vehicle deck. Media reports say the ship will be put up for sale.

As it was built for year round service in the Baltic, Birka Stockholm has high ice class – 1 A Super in the Finnish/Swedish system. The ship has four diesel engines that develop in total 23,400kW and they drive two propellers via gearboxes rather than use electric drive, as is the case with most deep sea passenger ships.

Eckero group’s ferry services between the Aland islands and the Swedish mainland and the Finnish and Estonian capitals are not affected.

Two postponed deliveries delay more than $1.0 billion payments to Meyer Werft

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 29 June 2020 29 June 2020

Postponed deliveries of two ships mean that Meyer Werft, the German shipbuilder, faces a delay in the payment of more than $1.0 billion to its bank account and the company has to seek funding to fill the gap.

The delivery of Iona to P&O Cruises in the UK that had been intended to take place in May, was first postponed to July and it is now hoped that the delivery could take place at the end of August, Bernard Meyer, head of the shipbuilder said in a video presentation to the company’s staff.

The postponed delivery, resulting from suspension of cruise operations of the Carnival Corporation & plc unit, means that the shipbuilder will not be able to receive the 80% of the contract price that is due to be paid on delivery until much later than originally planned. Consequently, the company has to seek additional short term funding to maintain its liquidity, Meyer said in the presentation to the staff of the company.

Iona has a contract price of USD1.1 billion, according to Shippax Info, the Swedish cruise and ferry industry publication. The amount due to Meyer Werft on delivery would thus amount to $880 million.

Spirit of Adventure, a newbuilding of about 56,000 gross tons for Saga Cruises in the UK, is also nearing completion and Meyer expects to deliver the vessel at the end of September. It was originally planned to be delivered in August. The ship’s contract price is $330 million, according to Shippax Info, of which the 80% due on delivery amounts to $264 million.

The cruise industry has been forced to postpone the commencement of operations, from early summer to late summer in some cases and in the case of the US, until late this year.

As cruise lines do not know when they can resume operations, it has not been possible to conclude talks about new delivery dates of ships they have on order at the shipyard, Bernhard Meyer said, describing the discussions as “complex.”