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Updated March 1st, 2010

 

 Cruise lines to Alaska: Most ships can't meet proposed pollution limits

The cruise industry is balking at new pollution limits for ships that could go in effect in Alaska later this year.

The Juneau Empire today reports an industry representative told a public hearing that more than half of the cruise vessels operating in the state would not be able to meet new limits for the pollutant ammonia that are part of proposed wastewater rules for 2010.

The news outlet says Alaska Cruise Association consultant Mike Tibbles argued the limits are too strict in general and there's not enough time for the industry to comply before the start of the Alaska season in a few months.

Tibbles said upcoming ship deployments in Alaska could be altered and port times in Alaska ports may be reduced if the limits go into effect, the Empire reports.

Princess to pull another cruise ship from Alaska in 2011

And then there were six.

Princess Cruises disclosed in December that it plans to pull another cruise ship from Alaska in 2011, leaving the line with just six vessels in the state.

Princess is the biggest cruise operator in Alaska and has had eight ships in the region in recent years. But the line already had announced plans earlier this year to reduce its Alaska footprint to seven ships for the summer of 2010.

Princess revealed the latest reduction as it announced that one of its smallest vessels, the 710-passenger Royal Princess, will be leaving the fleet in early 2011. Princess' parent company, Carnival Corp., has decided to transfer the eight-year-old ship to Princess' sister line in the U.K., P&O Cruises.

"With the transfer of Royal Princess there will be one less Princess ship in Alaska for the 2011 season, though full details are not yet available," Princess says in a statement. 

The move comes less than three months after the head of Princess' parent company, Carnival Corp. Chairman and CEO Micky Arison, told Wall Street analysts that it was likely to pull more ships out of Alaska over the coming year due to the rising cost of doing business in the state.

The parent company of Carnival, Princess and Holland America already is reducing capacity in Alaska significantly for 2010, as is Royal Caribbean and Norwegian Cruise Line.

Norwegian Cruise Line to base ship in Tampa for first time

Norwegian Cruise Line today announced it would base a ship in Tampa starting in late 2011 -- a first for the line.

Norwegian says the 2,240-passenger Norwegian Star will sail seven-day Western Caribbean voyages out of the city on a seasonal basis starting on Oct. 16, 2011 through April 8, 2012.

The Star will edge out the 2,124-passenger Carnival Legend as the biggest cruise ship sailing out of Tampa.

Norwegian's new Tampa-based voyages will begin on Sundays and include stops in Roatan, Bay Islands, Honduras; Belize City, Belize; Costa Maya and Cozumel, Mexico; along with two days at sea.

Norwegian today also announced the Norwegian Sun will return to Port Canaveral for the winter of 2011/2012, offering alternating seven-day Eastern and Western Caribbean cruises.

Ships stay the course in Chile post-earthquake       

Monday, 01 March 2010

Cruise lines aim to go ahead with scheduled port calls and turn-arounds in Chile as they continue to closely monitor the situation following Saturday’s 8.8-magnitude earthquake that killed more than 700 people.

Star Princess is scheduled to turn around in Valparaíso on Tuesday, and Princess Cruises has advised passengers joining the ship for the next sailing to still plan to arrive for a Tuesday departure.

Santiago’s international airport continued to re-establish service today, though half the usual number of flights are operating.

Holland America Line’s Veendam was in protected waters in Chile when the quake hit and the line has not changed any itineraries since Saturday when its vessels in the Pacific Ocean stayed at sea for safety during the tsunami alert.

Norwegian Sun is on course. ‘We are closely monitoring the situation in Chile and will keep guests updated as to any changes to the current scheduled itinerary,’ a Norwegian Cruise Line spokeswoman said.

STX France, MSC sign loi for 140,000gt newbuild   

Monday, 01 March 2010 

It’s official: STX France and MSC Cruises signed a letter of intent, subject to financing, for the construction of a 140,000gt ship to be delivered in mid-2012.

To be called MSC Favolosa, the newbuild is a slightly larger sister of MSC Fantasia and MSC Splendida, delivered in December 2008 and July 2009, respectively. It will have 1,751 cabins, 100 more than the earlier vessels. Its length is 330mtrs.

Editorial: Battle of the Giants 

Both Carnival Cruise Lines and Royal Caribbean International introduced new ships this past fall. Carnival introduced the newest generation of what started as its Destiny class, built by Fincantieri in 1996, going from 101,000 to 102,000, 110,000 and now 130,000 tons and raising the passenger capacity along the way from 2,600 to 3,650.

Royal Caribbean, meanwhile, has taken a quantum leap out of the box with the 225,000-ton, 5,600-passenger Oasis of the Seas built by STX Finland. While the ship shares many features with the previous Freedom class, which was an evolution of the 1999-introduced Voyager class, the Oasis is much larger and amazing in all its creativity and all it has to offer.  It is closer to being a floating resort than any other ship we have sailed on.

Both Carnival and Royal Caribbean are very successful cruise brands. Yet their strategies are very different.

Carnival, which has been known for its creative and sometimes eclectic interior designs, suddenly seems almost conservative, careful and measured, not taking any chances on what may be new and unknown.

Royal Caribbean is letting creativity rule, and not only in the visible design, but also in the arrangement of the vessel, in the activities and in the services, going far beyond appearances. While we found the Dream comfortable, familiar and almost a little dull, we found the Oasis exciting, but also a little overwhelming, and do not like to plan our vacation as much as the Oasis seems to require for dining and entertainment.

Of course, we also had reservations before sailing on the other big Royal Caribbean ships and on Carnival, but found that we enjoyed them all. So both formulas are likely to work.  Carnival is targeting Middle America, while Royal Caribbean expects half of its passengers to come from foreign markets. Carnival’s investment in hardware is less.  Royal Caribbean has higher capital costs, along with higher operating costs and most likely higher sales and marketing costs as well, as it depends more on foreign markets. So Royal Caribbean has to charge more for its cruises.

Carnival executives tell us that once you are charging more, you are also reducing your market accordingly. Royal Caribbean executives tell us that by offering more, people are willing to pay more.

Clearly there are very smart people at both companies who have figured all this out. Regardless, the proof will come in future earnings calls.

We are also waiting to see how the Norwegian Epic will compare to the Dream and the Oasis.  The Epic, which will enter service in the summer, is intended to take Norwegian Cruise Line’s Freestyle concept to the next level.

We look forward to watching and commenting as the industry continues to evolve, and more new ship concepts and designs will undoubtedly be introduced, taking the industry to the next level, and then to the next level after that – surprising us all.

-- Angela Reale Mathisen & Oivind Mathsien  

 

 

 

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