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Government Shipbuilding
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CRUISE SHIPPING
Royal Caribbean’s
TRACELET?
Besides tracing, its capabilities enable better management of onboard social distancing.
Source: RCCL sale of Azamara to the private equity ? rm Sycamore Partners- Line Industry Association (CLIA) had made unsuccessful ef- with RCL noting: “The transaction will result in a one-time, forts to ward off impending shutdowns of the business, includ- non-cash impairment charge of approximately $170 million.” ing a meeting with then Vice President Mike Pence (head of the Trump administration’s Coronavirus Task Force). Shortly thereafter, two other cruise majors, Royal Caribbean (RCL) and
What might the future hold?
CCL’s Mr. Donald, in the earnings guidance, stressed that: Norwegian Cruise Line Holdings (NCLH), joined forces and as- “The company expects future capacity to be moderated by the sembled a team of medical experts, the Healthy Sail Panel, with phased re-entry of its ships, the removal of capacity from its the mission “…to closely examine every aspect of the cruise ? eet and delays in new ship deliveries.” Executives in the sec- ecosystem, and recommend the most effective, scienti? cally tor were quick to point to “pent up demand”, but the demand sound ways to make the cruise experience healthier and safer.” side of the voyage back to pre-pandemic levels will be a long In September 2020, the panel, which also included repre- one. The consultants Maritime Strategies International (MSI), sentatives from the operational side of RCL and NCL, then wrote, in a January, 2021 report: “This year, we expect cruise submitted a 70 page report, to the CDC, which had issued the passenger levels to increase to 11.9m, an increase of 59% year ? rst “No sail” orders in March (and asked each line for plans on year, but still substantially below the 29.6m cruise passen- to keep crews safe), providing recommendations “…rooted in gers recorded in 2019.” The majors were pushing back start the best scienti? c and public health information available…”.
dates for itineraries originating in the U.S. In a January, 2021 The panel’s guidance dealt with ? ve areas, beginning with report, the Truist analysts mentioned the second half of 2021 screening, testing and exposure reduction for passengers, as a possible start date for “revenue sailings” out of North onboard matters (sanitation, ventilation, responses and con-
American cruise hubs. tingency planning), safety for crews, and matters related to safety at destinations. The Healthy Sail effort underscores the sector’s important efforts to forge real links with the main-
What will Change?
As cruising resumes in a big way, what will be different on stream health establishment; one of its two co-chairs, Michael the vessels and also at ports serving them? The short answer Leavitt, now running a consultancy with a Washington, D.C. is “quite a bit.” Throughout the business, all the shipowners presence, was Secretary of Health and Human Services in the are implementing an array of new protocols informed by the early 2000’s in the George W. Bush administration. medical profession. The classi? catoin societies are also playing a leadership
As the pandemic began to spread, in March 2020, the Cruise role. One important initiative is the Cruise-Safe certi? cation, 30 Maritime Reporter & Engineering News • February 2021
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