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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Three Inaugural Calls for Dover in May

Three Inaugural Calls for Dover in May

Viking Sun

The Port of Dover saw three first-time cruise calls in May, highlighted by the Viking Sun and also including the Deutschland and Zenith.

The ships were greeted in true Dover Cruise style with a water salute from Dover Tugs Doughty and Dauntless, the port said.

In addition, the first bank holiday weekend saw the historic Western Docks at full capacity for the first time since 2016 with three cruise ships berthed together.

There was also a call from the expedition vessel, the Silver Cloud. The ship’s guests enjoyed a unique kayaking experience to view the iconic White Cliffs up close.

Holland America Line’s Prinsendam arrived in port on the Royal Wedding day on Saturday, May 19 to a celebratory great British Street Party in Cruise Terminal Two.

“Complimentary tempting food and drink were provided along with musical entertainment from the talented Nick Bosworth on piano and keyboard. Life-size cardboard figures of the Royal Family were positioned in the terminal where guests enjoyed taking selfies with them creating unique holiday memories. It was marvellous to see the affection passengers from all over the world have for our Royal Family,” the port said.