Page 28: of Maritime Reporter Magazine (December 2000)

Cruise Shipping Prospects increase — up approximately one per- cent from last year.

Despite these positive returns, RCL's yield has dipped slightly with a net decline of one percent in the third quar- ter, and its air/sea mixture lowered to 23 percent from 27 percent this time last year. Lazard has predicted that there is no relief for the yield decline in the near future, with fourth quarter yields expect- ed to be down four to five percent — due to lower pricing in newly introduced short itineraries.

While its yields may be diving, RCL should concentrate its sights on the coming year, as analysts have predicted that it will be an important one for the cruise company. It plans to expand its fleet by 20 percent and will implement a $2.1 billion Capex program.

On a quarterly basis, RCL is expected to grow by 14 percent, 30 percent, 20 percent and 18 percent in the first through fourth, respectively. Despite

Lazard's yield predictions for 2001,

RCL's management noted that it was too premature to comment on yield outlook for the coming year, they did however indicate the persistence of pricing pres- sure during the first quarter 2001. The company expects that yields will be down six percent in that period, specifi- cally due to difficult comps with first quarter 2000, which benefited from Mil- lennium's sailings. Booking levels for 2001 have remained at the same level they were in 1999. Management noted that it was holding back some capacity on the much-in-demand new releases, such as Voyager, Explorer and Millenni- um. Lazard has lowered RCL's EPS esti- mate to $2.30 from $2.47, most likely taking into consideration that higher fuels costs are expected to have a $0.01- $0.02 per quarter impact — assuming that bunker prices remain at current lev- els. Analysts have therefore rated RCL as Hold.

Cruise Lines Agree To Install

Local Smoke Alarms

The 16 members of the International

Council of Cruise Lines (ICCL) have unanimously decided to install audible local smoke alarms on all of their ships.

The installation of the alarms, which comes in response to a recommendation by the National Transportation Safety

Board (NTSB), calls for the new detec- tors and alarms to sound in passenger and crew cabins and adjoining corridors.

They will be implemented in addition to the already present smoke alarms that are required by international SOLAS (Safety Of Life At Sea) regulations.

Michael Crye, ICCL president, com- mented that particular attention must be given to prevent audible alarms form rendering the public address system.

December, 2000

American Hawaii Names

Master Of S.S. Independence

American Hawaii Cruises has named

Captain Evans W. Hoyt master of the

S.S. Independence, which sails to five major ports on four Hawaiian Islands every seven days with room for 860 pas- sengers.

Hoyt's 18 years of maritime experience includes officer posi- tions aboard several ocean-going cruise, cargo, and military ves- sels.

Most recently, he was master of the MV SP5 Eric Gibson for

Osprey Ship Management. From 1992 to 1999, he commanded ships for Crow- ley American Transport, carrying cargo for U.S. and U.N. armed forces. From 1991 to 1992, he was a chief mate for

Star Clipper, Inc., and in 1990, at the age of 29, he performed his first deep- sea command, aboard the S.S. Gulf

Trader during the Gulf War. tiXffii

We're Putting

Hp? Our Cards fi On The Table

And Calling

Their Bluff! jfP Your marine engine is too important to gamble with — so when it comes time to decide on which keel cooler is right for you, consider the facts.

Since our beginning over 50 years ago, Fernstrum has always been ahead of the game.

Fact is, Fernstrum has set the standard for the keel cooling industry since our company's founder, Robert Fernstrum, patented the first rectangular tubed keel cooler with an angled head back in 1945.

While others attempt to cash in on Fernstrum's innovation, we continue to up the ante on our competitors with ongoing research and development and new patented technology.

Why take a risk? Go with the real deal and stack the deck in your favor. Go with a Fernstrum GRIDCOOLER® keel cooler.

R.W. Fernstrum & Company 1716 11th Avenue • P.O. Box 97

Menominee, MI 49858

PHONE: 906-863-5553

FAX: 906-863-5634 http://www.fernstrum.com

Circle 258 on Reader Service Card 25