Arne Wilhelmsen, a founder of Royal Caribbean Cruises Ltd., dies at 90

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Written by Teijo Niemelä Teijo Niemelä

Category: Top Headlines Top Headlines

Published: 12 April 2020 12 April 2020

Arne Wilhelmsen, a founder of Royal Caribbean Cruises Ltd. and a visionary strategist of the modern cruise industry, died Saturday, April 11, 2020, in Palma, Spain. He was 90. The entire Royal Caribbean family extends its heartfelt condolences to the Wilhelmsen family.

Wilhelmsen was a constant influence on the company from its founding, serving more than three decades on the company's board of directors. Together with the company's first CEO, the late Edwin Stephan, Wilhelmsen saw possibilities for the nascent cruise industry that others did not.

"At a time when the rest of the world thought cruising was a niche use for old transatlantic liners, Arne was already seeing glimmers of the growth that was possible," said Richard Fain, RCL's chairman and CEO. "He had a vision of the modern cruise industry when the 'industry' might have been a dozen used ships, total."

Their key insight: building new ships uniquely designed for cruising in warm weather. The industry did not grow from New York, the traditional transit hub; it came to Miami, helping the region itself grow as the public discovered an entirely new way to take a vacation.

Wilhelmsen saw the potential for cruising to become the fastest growing segment in a growing vacation industry. A believer in economies of scale, he once recalled, "My initial challenge was to convince my partners and management in Miami to build bigger and more efficient ships in order to grow the company." True to his vision, the company now sails 61 ships calling on all seven continents and its fleet features the largest cruise ships in the world.

Born on June 15, 1929, in Oslo, Norway, Wilhelmsen earned his MBA at Harvard Business School and worked as a chartering assistant for Norway's EB Lund & Co. and later as a shipbroker in New York. After joining the family business in 1954, he became its president in 1961. The scion of a leading Norwegian shipping concern – Anders Wilhelmsen & Co AS – he spent most of his life in the family business, including an early stint as a deckhand.

"Arne was a steady presence and source of wisdom on our board for decades," Fain said. "And in 2003, when he was ready to step back, he was succeeded on the RCL board by his son, Alex, who has carried the involvement of the Wilhelmsen family in charting our company's course into its sixth decade. Our high standards as a company, our insistence on excellence in operations and design, and our determination to persevere all owe a great deal to the long-term vision of Arne, Alex and the Wilhelmsen family. We salute our friend, and we will miss him dearly."

CLIA reacts on No Sail Order

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Written by Teijo Niemelä Teijo Niemelä

Category: Top Headlines Top Headlines

Published: 10 April 2020 10 April 2020

Cruise Lines International Association (CLIA) has published the following statement regarding No Sail Order issued by the U.S. Centers for Disease Control and Prevention (CDC) on April 9, 2020:

"Our industry has taken responsibility for protecting public health on board cruise ships for more than 50 years, working under the guidance and at the direction of the U.S. Centers for Disease Control and Prevention, the Department of Health and Human Services and the U.S. Coast Guard, as well as the World Health Organization and others. To this end, in March and April the industry submitted proposals to the White House Coronavirus Task Force that are far reaching in prevention, detection, and care—and, importantly, would be led and funded by the industry.

We very much value our relationship with the U.S. authorities, and will continue to work with these important agencies in our shared commitment for the health and safety of passengers and crew, which is the industry’s number one priority.

We are, however, concerned about the unintended consequences the No Sail Order issued on April 9 has in singling out the cruise industry, which has been proactive in its escalation of health and sanitation protocols and was one of the first industries to announce a voluntary suspension of operations.

Cruise activity supports multiple sectors of the U.S. economy (transportation, food and beverage, lodging, manufacturing, agriculture, travel agencies and travel agents, plus a broad range of supply chain industries and small businesses) that stretch across the United States. Should the suspension of sailing extend well beyond the appropriate time to resume business, the economic impact could be significant given each day of the suspension results in a total economic impact loss of about $92 million and the loss of more than 300 direct and 620 total American jobs. Over time the pace of the losses will increase and could result in a total economic impact loss to the United States of $51 billion and 173,000 direct and 343,000 total American jobs if the Order were to remain in effect for a year (Source: BREA/CLIA Economic Impact Analysis).

While it’s easy to focus on cruising because of its high profile, the fact is cruising is neither the source or cause of the virus or its spread. What is different about the cruise industry is the very stringent reporting requirements applicable to vessels that do not apply to comparable venues on land where the spread of communicable disease is just as prevalent. It would be a false assumption to connect higher frequency and visibility in reporting to a higher frequency of infection," CLIA said in a statement.