Vessel Performance Key to Secondhand Ship Market for Carnival

Oriana

Carnival Corporation has sold 28 ships since 2006, averaging around two ships per year based on demand in the market.

That number was up in 2018, with the company announcing the exit of four ships overall.

The Pacific Eden was sold to Cruise & Maritime Voyages while the Pacific Jewel will head to Indian start-up Jalesh Cruises.

Holland America Line sold the Prinsendam, which will become the Amera next summer for Phoenix Reisen.

P&O Cruises UK also announced the Oriana will leave the fleet in 2019.

“The practical reality for us is if the ship is relevant to our guests and is delivering a double-digit return on invested capital … we have to invest more in that ship over time. We’ll continue with the ship in the fleet if it’s relevant to the guests and his earning is key if it’s not then the ship will be gone,” said Arnold Donald, president and CEO, on the company’s year-end and fourth quarter earnings call.

The secondhand cruise ship market has historically been highlighted by two to three nine- to eight-figure transactions on an annual basis, according to the Secondhand Market Report by Cruise Industry News.

“And so in terms of there being a robust secondary market, there’s no question, the secondary market has an opportunity not only because the IMO regulations but simply because the ageing of ships that are in the secondary market,” Donald added.

Donald said many operators in the secondhand market were sailing ships that are 40 to 45 years old, and those vessels will need to be replaced.

“So there should be a market for a number of the ships. But at the same time, to drive earnings and return on invested capital, if we had a need to scrap for ships, in a nutshell, we would do that. We don’t see that at this point in time. But if it came to that, we have no problems doing that,” Donald continued.

“But we’re not going to hold onto an underperforming asset, because we’re not able to sell it. I mean, if – we would scrap it if we had to. I don’t anticipate that, but if we had to do it, we would do it.”

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Carnival Splendor To Make Drastic Move To P&O In 2019

Image result for carnival splendor
Carnival Splendor will be transferred to P&O Australia

Carnival Cruise Line has just revealed that its vessel, Carnival Splendor, will be transferred to P&O Cruises Australia in late 2019.

The move is to boost guest capacity and maintain the line’s growth in the Australian market. The 113,000gt Carnival ship is 50% larger than P&O’s biggest ship and will accommodate 3,000 guests.

P&O Cruises Australia president, Sture Myrmell, stated: ‘Welcoming a transformed and renamed Carnival Splendor to the P&O Cruises’ fleet in 2019 on the back of the addition of Pacific Explorer in mid 2017 cements our position as Australia’s leading cruise line and the only true home grown Australia brand’.

‘In four years P&O Cruises will have doubled capacity by welcoming four ships- Pacific Aria, Pacific Eden and Pacific Explorer as well as the additional ship in 2019- as part of the remarkable evolution of the brand’.

A newbuild originally designed for P&O Cruises Australia will now join the Carnival fleet as the third in its Vista Class whilst Carnival Splendor will be transformed into P&O Cruises Australia.

Myrmell continues: ‘We benefit from being part of a global organisation with a worldwide fleet of cruise ships that ensure we have the flexibility to make the most of opportunities in our region and to adjust our strategies accordingly. Having reviewed the market, we believe a 3,000 passenger ship is the right sized ship for the P&O fleet to drive further sustained growth in our market.’

P&O Cruises Australia hopes that Carnival Splendor will enable it to maintain its position as the region’s largest and longest-serving cruise operator.

Before joining the fleet, Carnival Splendor will be refurbished ‘to reflect the P&O look-and-feel and build in the experiences core to our offering’, Myrmell said. And while P&O’s desire to grow its position in an increasingly competitive market was the core reason for the change in plans, Myrmell has further stated that other longer term factors could not be ignored in the recent market review.

Carnival Splendor will join P&O at the end of 2019 and more details regarding the ship’s features and itineraries will be revealed in due course.

Holland America’s next ship to be called Nieuw Statendam


Nieuw Koningsdam

Holland America Line said its next ship due in 2018 will be named Nieuw Statendam.

HAL officials made the disclosure at the Rotterdam christening ceremony of its latest ship, Koningsdam. Nieuw Statendam will be a sister ship to the 2,650-passenger Koningsdam.

Last year, the 1,258-passenger Statendam was transferred to the fleet of P&O Cruises Australia and renamed the Pacific Eden.

Five previous ships in HAL history have carried the Statendam name.