In this issue: The way forward. Also inside: Refurbishment, Crystal ball, The Asian cruise market
Date: 2011-03-06
Safeguarding your performance
The large number of new cruise ships delivered over the last decade has created a large backlog of vessels in need of refurbishment. To remain competitive, fleet owners are investing to align their brands, improve the passenger experience and extend the productive life of their existing fleets. Cruise companies are also investing in upgrades to improve energy efficiency and comply with new environmental regulations.
Refurbishment adds life cycle value
The Norwegian Sun was 24 hours away from returning to sea from dry-dock at the Grand Bahama Shipyard after 900 workers had swarmed the ship from bow to stern. Sime Utkovic, Norwegian Cruise Line's director of technical operations and ringmaster over 10-days of controlled chaos in dry dock, was overseeing final preparations to float the vessel and steam for the first time cruise after refurbishment to Florida.
Carnival grows in-house competency to oversee rebuilds and refurbishments
The challenge facing Carnival Corporation is crystal clear: to remain competitive, the world's largest cruise line group must embark on a major programme to refurbish or refit dozens of vessels in its 98-ship fleet. This work requires a disciplined approach to managing risk in order to help Carnival's 10 brands avoid unanticipated losses, manage uncertainty and technical challenges – and capitalise on the brand alignment opportunity.
RCCL drives efficiency
Kevin Douglas, Royal Caribbean Cruises Ltd's (RCCL's) vice president of technical projects, leans forward at his desk in a modest, brightly lit office – the nerve center of the cruise line's potential USD 500 million in planned refurbishments. Mr Douglas is searching for the right words to explain innovation in the makeover of old vessels.
Celebrity Cruise Line's Technical & Operational team
DNV's Global Cruise Center is well positioned to help cruise lines with all their operational, training and international classification needs. DNV has experience from working with clients around the globe in every niche of the cruise fleet industry. Our specialists offer a full range of services, from refurbishment to pre-construction design and strategic advisory services.
Norwegian Cruise Line Song and Dance: Broadway-style shows, Big Concerts find fans at sea
Norwegian Cruise Line promotes itself as providing the most extensive lineup of live entertainment at sea. The strategy is driven by the sharp decline in the U.S. of the lucrative concert and theater industries, which has experienced a nearly 20 percent decline in sales. Norwegian Cruise Line has seized the opportunity, offering Las Vegas- and Broadway-style shows, and investing in ship refurbishments to include attention to entertainment space upgrades.
The Grand Bahama Shipyard at Freeport, Bahamas
The Grand Bahama Shipyard had two dozen cruise ship dockings in 2010 and this year has received orders for another 24 cruise ship projects. It expects to equal or surpass two dozen dockings in 2012.
DNV specialises in cruise upgrading services
Any refurbishment project needs a competent partner for class and statutory issues. The Global Cruise Center in Miami provides approvals, surveys and advisory services to DNV customers.
Ultra-Luxury Seabourn doubles up
Richard Meadows, the new president of Seabourn, says the luxury brand is poised to get bigger and better. A division of Carnival Corporation & plc, Seabourn has six ships (once Seabourn Quest is delivered in May 2011) and recently announced the move of its U.S. headquarters to Seattle to share the facilities of Holland America Line.
High rewards, potential high risks
Asia has some of the world’s most congested waters and ports fraught with hazards. Of the world’s 10 busiest ports, no fewer than eight are located in Asia. In Hong Kong waters, there were 157 collisions, 36 groundings and 26 sinkings reported in 2009 alone. Adding to the challenges are the local seasonal weather conditions, with periods of dense fog reducing visibility to zero, torrential rain and typhoons which are increasing in number.
Norwegian Cruise Line has ordered two exciting newbuildings from Meyer Werft
Norwegian Cruise Line is continuing to build capacity within the Freestyle Cruising concept by ordering two large and innovative newbuildings for its next generation of cruise ships to be delivered in 2013 and 2014.
The delivery of Allure of the Seas
“A seamless transfer from a newbuilding into full operation,” says Harri Kulovaara, RCCL Executive Vice President. He replied to the Cruise Update questions as follows:
40 years’ cruise ship experience
The Oasis of the Seas and Allure of the Seas are both in operation and it can be asked how this huge step in novelty and size of cruise ship could be made without serious problems and delays. “To put it briefly, the yard’s strengths are its long cruise ship experience and extensive planning as well as the Finnish subcontracting industry,” says Sisko Hellgren, one of the project managers at STX Europe’s Turku shipyard.
Key challenges for cruise companies
2010 was a fantastic year for cruise ship deliveries. Both the Allure of the Seas and Norwegian Epic were remarkable ships. The same applies to the new Disney ship that was delivered, and Celebrity is continuing to build its series of extremely elegant ships. It is difficult to understand what the next design and novelty step can be in the cruise industry. But the history of cruise tells us that there will further developments that benefit the industry.
The demand for increasingly diverse vessels
“Deltamarin has a long history of working on the most innovative cruise designs of our time. We have been fortunate to be able to participate in these interesting cruise projects with our partners,” says Paivi Haikkola, Deltamarin’s marketing director. The future of the cruise segment will certainly be at least as interesting as its past.
Protecting the environment is a cruise industry challenge that grows more complex
In the near future, everyone involved in the cruise industry -- owners, international organizations, national governments, regional associations of nations, travel agents and cruise vacationers themselves – expect the bar to go higher on protecting Mother Earth.
Cruise tourism helps Haiti
Adam Goldstein, the CEO of Royal Caribbean International, explains the company’s decision to continue bringing cruise vacationers to Labadee, Haiti after the devastating earthquake in January 2010. Royal Caribbean, which has leased the beach resort since 1986, was initially criticised for this decision.
Star Cruises comes full circle in the Asian cruise market
For a shipping sector long dominated by European and American players, Genting-owned Star Cruises has achieved an enviable position as the world’s third largest – and Asia’s leading – cruise operator. Chief operating officer William Ng describes his company’s journey through the crests and troughs of the cruise sector, and how despite a strong hospitality background in Asia, Star Cruises had important lessons to learn on its way to success.
The Cruise Lines International Association, CLIA, the voice of the cruise industry
Christine Duffy, the new Cruise Lines International Association president, says the world’s largest cruise trade group remains dedicated to health, safety and protecting the environment as the cruise industry goes global.
The Maritime Labour Convention may hit the Cruise Industry in 2011
According to the International Labour Organisation (ILO), approximately 50 countries were well on the way towards ratification and the EU had set a target deadline for member states to ratify by the end of 2010. Now we know that most EU countries did not meet the target, but the feedback we have is that they are working on legislation in order to ratify in 2011.
DNV’s Global Cruise Center is well positioned
DNV’s Global Cruise Center is well positioned to help cruise lines with all their operational, training and international classification needs. DNV has experience from working with clients around the globe in every niche of the cruise fleet industry. Our specialists offer a full range of services, from refurbishment to pre-construction design and strategic advisory services.
The Cruise Service Unit – UK
The establishment of Cruise Service Units at strategic locations around the world effectively connects DNV units in a global network to support cruise operators and shipyards.