Will discounts lead to dividends for cruise lines?

A panel of cruise experts speaking at the recent World Travel Market exhibition and conference in London predicted that today’s first time cruise passenger, attracted by hefty discounts, will become cruise regulars in the future.  The panel also agreed that the need to fill new ships by offering price-driven deals will reap dividends for the cruise industry when the recession ends.

Cruising has bucked the trend in the UK during the recession, with the number of UK cruise passengers set to reach 1.55m this year.  The panel argued that the extra 47,000 beds coming onto the cruise market in 2010 and 2011 will not be a problem. Yachts of Seabourn director, Europe, Middle East and Africa, Andrew Magowan said the cruise line would raise its 2010 capacity by 60%, but said it was not a concern, despite a need for discounting.

He said: ‘There will be some great opportunities for people to cruise on Seabourn. We are prepared to invest in the product because 50% of our clients repeat within 18 months.  I don’t buy the argument that if you discount in a difficult market you will never get it back.’

NCL’s UK and Ireland general manager Stephen Park said consumers ‘had never had it so good,’ and more people had been brought into the market. ‘At some stage the recession will finish and we will have more people coming into cruising,’ he said.

MSC Cruises’ UK and Ireland chairman Peter Pate said cheap headline prices where not necessarily what the consumer paid, adding: ‘Most clients’ trade up. Our per diem rates in the UK are up.’

RCCL associate vice president and general manager UK and Ireland, Jo Rzymowska, praised trade support for cruising and said: ‘We don’t have a capacity problem. Seven million people go to Spain and only 3% of the overseas holiday market is cruising.  The question people will ask is ‘do I go to Florida, do I climb the Himalayas, or do I go on a cruise?’  

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Star Cruises changes name to Genting Hong Kong Ltd

Star Cruises has changed its name from Star Cruises Ltd to Genting Hong Kong Ltd, with affect from 10 November.  The change in the company name is to align with the corporate strategy of the company in diversifying into land-based integrated resorts and entertainment business, in addition to it existing principal business of cruise and cruise related operations. The corporate website has now changed from www.starbruises.com to www.gentinghongkong.com  Sphere: Related Content

New TEAM bridge for Alabama Cruise Terminal

The latest dedicated passenger boarding bridge (PBB) designed by Spain’s TEAM has entered service in the US at the Alabama Cruise Terminal in Mobile.  The first vessel to use the new Hydra PBB design was Carnival Fantasy.

The Alabama Cruise Terminal, since its inauguration in 2004, has been homeport to the Carnival Holiday. This vessel has now been replaced by the larger, 2,056 passenger capacity, Carnival Fantasy, which in turn will be replaced in May 2010 by the Carnival Elation.

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China acts to boost cruise sector

The Chinese government has launched as number of concessionary measures to boost the country’s cruise business. At a summit held recently in Hainan province the Government announced the streamlining of customs procedures for cruise passengers and legitimising local cruises business, in an effort to promote the industry.

The Ministry of Transport and Communications said that the department would strictly control the safety and technical standards of local cruise operators.  It would also open up the local market to foreign cruise lines, as well as regulating their agencies. Meanwhile, the Ministry of Public Security said it would give a customs waiver procedure for foreign cruise passengers, if they did not make a landing. Chinese customs said that arrival and departure procedures would be simplified with the introduction of electronic documents for those passengers who enter the country.

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Swansea refit for Saga Pearl II confirmed

UK cruise line Saga has confirmed that its latest addition to its fleet, the former Club Cruise owned Astoria will undergo a five month, £20m refit, at Swansea Dry Dock in the UK, with the work being undertaken by the Harris Pye Group.  Following the refit the vessel will be renamed Saga Pearl II and enter service for Saga in March 2010, with her inaugural cruise to Norway from Southampton.

This is the first time in 10 years that significant refit work has been undertaken at Swansea Dry Dock.  The facility will now be reopened and renovated, providing some 300 jobs over the period of the refit.

Barry-based Harris Pye beat of strong competition from other UK repairers, as well as German yards to win two major contracts for work on Saga Pearl II.  As well as the addition of new balcony cabins, the existing show lounge, restaurants, spa and swimming pool will be upgraded. One of the best libraries afloat will be created and a new cinema installed. New galleys are also planned to support the gourmet dining experience in the vessel’s elegant dining rooms.

A sports deck will be created, including the addition of a short tennis court. On the technical side, the vessel will receive a new foul release coating system.

Harris Pye is being used for the main engineering work and Saga is planning to place a number of other major contracts with UK-based contractors. 

Commenting on the refit contract, Andrew Goodsell, Executive Chairman, Saga Group said: ‘The multi-million £ refit will ensure that Saga Pearl II is splendid throughout and with 446 passengers she will have an intimate atmosphere and the quality of service our passengers have come to expect. I am delighted that we are able to support a British yard and that in doing so we will help with the regeneration of the Swansea docks.’

 

The first contract won by Harris Pye for a cruise vessel is for the provision of the drydock and drydock services, which include the complete overhaul of the vessel’s four Wärtsilä-Sulzer 6L46 main engines, auxiliary engines, boilers HVAC systems, electrical and automation, as well as a large quantity of steel and pipework renewal, plus hull treatment and tank coatings and all related engineering work throughout the ship.

 

The second contract for Harris Pye involves Harris Pye’s Outfitting and BEK divisions, which will be fully equipping both the Veranda Restaurant and the Discovery Lounge and supply all necessary galley equipment for both.  They will also be used in the refurbishment of the crew’s cabins.

 

The Harris Pye Group is already familiar with working with Saga, undertaking both technical and hotel work onboard their Spirit of Adventure while she underwent a three month refit in Malta in 2008. The work package on this vessel included steel and pipe renewal, main engine overhaul, as well as refitting the galley areas, refrigeration areas and cabins.  The company has also recently been involved in the refits of two P&O Cruises’ vessels at Germany’s Lloyd Werft.  The £1m + jobs involved Artemis and Oceana.    

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RCI gets rid of older, smaller vessels

The past few weeks or so have seen Royal Caribbean International (RCI) prune its fleet of some of the older, smaller vessels. A deal has already been done to sell the 1984-built, steam turbine powered Atlantic Star (ex Fairsky, Sky Wonder), to undisclosed owners, with the sale expected to close by the end of this year. The vessel is currently in the fleet of Spain’s Pullmantur and at one point was being earmarked for a new cruise product for Mexicans, homeported in Acapulco.  Instead the vessel was redeployed on cruises from Lisbon in April this year

on cruises aimed at the Portuguese market, but was replaced by a new vessel at the end of May.  The vessel was then scheduled to start a new programme of cruises in South America, but was laid-up instead.

Meanwhile, RCI is believed to be close to selling its 1982-built Bleu de France (ex Holiday Dream, SuperStar Aries, SuperStar Europe and Europa).  The 752 passenger capacity vessel is currently operating for RCI’s French brand CDF Croisieres de France. Some reports suggest that the UK’s saga is the interested party. Sphere: Related Content

Cruise ships face emissions anomaly

Cruise lines operating European itineraries in 2010 could face major challenges from July next year when new regulations on the sulphur content of marine fuels come into force.

The International Bunker Industry Association (IBIA) is warning that passenger vessels could be subject to three different sulphur limits on a single voyage! In designated Emission Control Areas (ECAs) covering the Baltic Sea, North Sea and English Channel, the maximum sulphur content of marine fuels will be cut from 1.5% to 1.0%. However, in other European Union ports the limit will remain at 1.5%, while outside the EU it will be 4.5%.

Therefore a passenger vessel leaving Northern Europe for a Mediterranean cruise will be required, as from 1 July 2010, to burn a maximum 1% sulphur fuel in the Baltic and North Sea and a maximum of 1.5% in the Mediterranean, while potentially being able to burn 4.5% outside EU territorial waters.

IBIA chief executive Ian Adams said a change in the IMO standard for ECAs would not affect existing EU rules on passenger ship emissions, resulting in this anomaly. ‘The only way this apparent anomaly can be addressed is by a revision of the EU Directive 1999/32/EC, which covers the sulphur content of liquid fuels derived from petroleum.’

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Louis Majesty on her way to Europe

Louis cruise Line’s newest vessel, Louis Majesty, is on her way to Europe from the US to start her new life with the Cypriot cruise line.  Bought from Malaysia’s Star Cruises, Louis Majesty is the former NCL operated Norwegian Majesty and following a brief period of routine maintenance and re-painting, will enter service for Louis on 4 December.  The inaugural cruise is a 16-day Canary Islands voyage from Genoa, with calls at Marseille, Gibraltar, Funchal, La Palma, Tenerife, La Gomera, El Hierro, Las Palmas, Lanzarote, Casablanca, Malaga, Almeria, Alicante and Barcelona.

Following her maiden cruise for Louis, Louis Majesty will then undertake a six-day Christmas cruise to ports in France, Spain, Tunisia, Malta and Italy, followed by an eight-day New Year’s. Early 2010 will see the 1,790 passenger capacity vessel undertake a series of eight-day cruises to Morocco & Spain, Tunis, Libya and Malta and the Iberian Coasts, as well as 12-day voyages to the Canaries, Morocco and Spain, as well as 12-day cruises to the Eastern Mediterranean.

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Crystal Symphony re-appears with enhanced facilities from Boston refit

Crystal Cruises’ 1995-built, 960 passenger capacity Crystal Symphony has re-appeared from her US $25m refit at US repairer Atlantic Marine’s Boston facility boasting a number of enhanced passenger facilities.

The vessel now offers completely transformed Crystal Penthouses, Lido Café and pool areas, redesigned Penthouses and Prego Italian Restaurant, among numerous other improvements.

The 982sq ft Crystal Penthouses have been remodelled top to bottom, with expanded living space, new audiovisual systems and floor-to-ceiling dining room windows.  Ocean-view bathrooms offer large Philippe Starck bathtubs, glass mosaic tiles and recessed TVs.  The ship’s Penthouses have also been redesigned in two new colour schemes, with new custom cabinetry, plush bedding, flat-screen TVs and lavish bathroom accoutrements.

The Lido Café has gained a refined motif with abundant natural light and colours and details inspired by the Hampton seashore. New food and drink service islands improve passenger flow.

The Seahorse and Neptune Pool Decks now feature sport white deck furniture and cushions and throw pillows for added alfresco dining and conversational seating. With its retractable roof and new teak decking, the mid-ship Neptune Pool was replaced with additional plush seating and a large Jacuzzi hot tub.

Prego, the Italian restaurant showcasing cuisine by Piero Selvaggio, gained chocolate suede walls and red-wine coloured upholstery, as well as new lighting.

All cabins were refurbished with leather sofas replacing armchairs.

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Adriatic Lines launches new freight-only ferry service between Italy and Greece

What is claimed to be the first dedicated freight-only ferry service linking Italy and Greece has been launched by newly established Adriatic Lines between the ports of Ravenna and Corinth.

The new service, providing up to six sailings a week, is being maintained by the two recently refurbished ro-ros Ropax 1 and Ropax 2, each of which can carry 165 freight units and 200 drivers in 120 cabins

The innovative route allows hauliers to save many kms and consequently time, avoiding high density traffic routes and congested ports. The crossing time is approximately one and a half days, with departure and arrival times designed around the needs of freight transportation.

Commenting on the new ferry line and service, Simon Taylor, managing director of Adriatic Lines said: ‘This is not only a new line but a new way of thinking about freight on the Adriatic Sea. It ensures significant cost savings for transport companies and a better onboard accommodation for drivers. We are in partnership with shipowners and have been working on this for more than one year; deciding to start in these difficult times is a further evidence that we are here to stay.’

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Euroferries delays start-up of Ramsgate-Boulogne service again!

The ‘will they won’t they’ saga of the start-up of new UK fast ferry operator Euroferries Ramsgate (UK)-Boulogne (France) continues with the operator delaying once again.  Euroferries was to have begun operations with Fred Olsen’s wave-piercing catamaran Bonanza Express on 14 November, but for the third time this year has had to cancel the service. 

In another of the company’s bland statements it says: ‘Euroferries has regrettably had to delay its high speed cross-channel service launch scheduled for 14^th November due to hampered final stage operations. Euroferries apologies for any inconvenience caused to its customers and assures them that it is their foremost intention to resolve this matter swiftly allowing the service to commence.

‘All Euroferries bookings affected by this matter have the option of either receiving a full refund or alternatively receiving first class upgrades for an alternative date of travel.’

‘Off Radar’ understands that the vessel to be used on the new service, Bonanza Express, remains in the Canary Islands.    

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Gunmen Kill Somali Judge Who Jailed Pirates and Militants

A Somali judge known for jailing pirates and militants was shot and killed by masked gunmen Wednesday night (11/11) in Somalia's semi-autonomous Puntland region.
Sheikh Mohamed Abdi Aware, who was gunned down after leaving his mosque in Bosasso, had most recently sentenced four al-Shabaab militants to prison.

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Russia Detains Five Georgian Fishermen

Russian forces detained five Georgian fishermen near the disputed Georgia/Abkhazia Black Sea border on Tuesday (11/10). The fishermen were then transferred to Abkhazian authorities in Sukhumi.

 

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Pirates Seize Greek Cargo Ship

Suspected Somali pirates hijacked the Greek-owned cargo ship, the MV Filitsa, Wednesday in the Indian Ocean, about 470 miles northeast of the Seychelles. The MV Filitsa has a crew of 22.

 

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Spain Considers Releasing 2 Pirates to Save Fishermen

The Spanish government apparently is considering giving in to the threats of Somali pirates by releasing two of their compatriots detained in Madrid.
The two pirates were part of a group that seized the Spanish fishing trawler Alakrana at the beginning of October. They were arrested by the Spanish navy two days after the hijacking. The criminals holding the Alakrana have threatened to kill her crew unless the demand is met. The pirates also want $4 million in ransom for the release of the ship and crew.

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India Wants Warships Back from Sri Lanka

It seems that as part of its final military offensive against the Tamil Tiger (LTTE), the government of Sri Lanka leased two coast guard ships from India. Now with the LTTE defeated, the Indian Coast Guard wants its vessels back and Sri Lanka's navy seems to be "clueless" about the demand, reports the Hindustan Times.

 

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Saudi Navy Blockades Yemen's Northern Red Sea Coast

It's being reported that Saudi Arabia's navy has imposed a maritime blockade on Yemen's northern Red Sea coast near the Saudi border in order to prevent weapons being smuggled to Shiite rebels in the area.
Saudi Arabia began taking military action against the rebels last week after they supposedly launched a cross border raid into Saudi territory.

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Hurricane Ida Moving North Through Gulf of Mexico

Hurricane Ida strengthened overnight as it neared Mexico's Yucatan Peninsula. The storm is currently a category 1 hurricane, but is predicted to strengthen as it moves north through the Gulf of Mexico.
As of the 9:00 AM Sunday advisory from the National Hurricane Center, the storm is expected to near the northern U.S. Gulf Coast by early Tuesday morning. However, by then it may have weakened into a tropical cyclone.

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Navy Commissioning Newest Battleship Today

Today (11/7) in New York City, the U.S. Navy is commissioning its newest battleship, the USS New York. The bow of the ship is forged from steel from the World Trade Center.
New York is the fifth ship in the LPD 17 San Antonio class of amphibious transport dock ships.

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Somali Pirates Threaten to Kill Hostages

Somali pirates have threatened to kill three captive Spanish fishermen unless Spain releases 2 pirates captured early in October. The sailors are part of the 36 person crew from the Spanish tuna boat the Alakrana that was hijacked on October 2.
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Israel Wanted to Bomb Ship Smuggling Arms to Hezbollah

U.S. officials were able to dissuade Israel from bombing the weapons smuggling cargo ship that Israeli commandos intercepted earlier this week. A-Sharq Al-Awsat newspaper was first to report this news, which was based on unnamed Israeli sources.
If it is true that Israel was going to blow the Francop out of the water, then it's good that the U.S. was able to stop the attack because the crew and owners of the ship apparently had no idea what type of cargo they were carrying in the sealed containers.
In other relevant news, Hezbollah, and the governments of Syria and Iran deny any involvement in the 500 tons of weapons and ammunition seized by Israel.

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Hurricane Ida Threatens Nicaragua

A tropical storm was upgraded to a category one hurricane this morning as it approached the Nicaraguan coast. According to the U.S. National Hurricane Center, as of 7:00 am EST this morning the government of Nicaragua has issued a hurricane warning for Hurricane Ida from the east coast from Bluefields northward to Puerto Cabezas.
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Magnitude 5.3 Earthquake Off Oregon Coast

Wednesday morning about 4:38 AM local time the U.S. Geological Survey recorded an earthquake with a magnitude of 5.3 off the coast of Oregon. The epicenter was located 124 miles due West of Barview.

The U.S. West Coast Tsunami Warning Center issued a statement that the magnitude was not great enough to generate a tsunami.

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