Like many people who follow the cruise industry and enjoy the occasional break at sea, I sit here agog at the growing number of older but still useful cruiseships that are heading for scrap.
Carnival Corp’s sale of its 75,200-gt, 2,394-berth Costa Victoria (built 1996) to an Italian shipyard for dismantling in June was one that came completely out of the blue. At 24 years, it was only middle-aged by cruiseship standards.
The sale came as a shock to me. I was a paying passenger on the Costa Victoria several years ago, sailing on a week-long cruise from Singapore to Bali. The ship had just undergone an extensive midlife refit that was supposed to keep it relevant and viable in the cruise trades for at least 15 to 20 more years.
For its passengers, the vessel appeared fresh and modern, and set for a long, happy future. We enjoyed long days at sea cocooned in comfort. We were well fed and entertained, leaving us wanting more when it came to an end.
Last September, I crossed paths with the Costa Victoria again. This time, I was on board a ferry in the Aegean when the ship sailed close past in all its glory, carrying yet another load of happy passengers.
It still seems inconceivable that less than a year later, the Covid-19 pandemic has damaged the cruise industry to the point at which such a ship was deemed to be worth only its weight in scrap.
Widespread rumours
Carnival chief executive Arnold Donald has been quite open about the future facing many older cruiseships. The shutdown of the industry, and the expected slow resumption of business, will lead to the early retirement of many more vessels, he said.
Carnival has earmarked 13 ships for sale. With few potential buyers in the secondhand market, Donald did not mince his words when he said many would end up at shipbreaker yards.
Over at Royal Caribbean Cruises (RCCL), a similar sell-off has begun, with three of the oldest ships that were operated by Pullmantur already heading for recycling.
While some cruise consumers are up in arms about the destruction of their favourite floating homes away from home, in the brutal world of economic reality, it really is the only viable option
RCCL has been less vocal about its fleet disposal plans, but this week its 73,900-gt, 2,733-passenger cruiseship Monarch (built 1991) quietly arrived off the Turkish shipbreaking centre of Aliaga.
Its sistership, the 73,500-gt, 2,773-passenger Sovereign (built 1987), is expected to follow shortly, as is its 47,400-gt, 1,442-berth fleetmate Horizon (built 1990).
Widespread rumours within the sector, as well as among loyal cruise fans on consumer message boards, indicate that many more cruiseships are being prepared for demolition sales. Older, unrefurbished units of Carnival Cruise Line’s Fantasy-class ships are suggested as strong contenders.
While the cruise lines are loath to admit that such deals are being tied up, telltale signs emerge when a ship’s crew begin removing all potentially useful equipment.
The 70,400-gt, 2,056-passenger Carnival Fantasy (built 1990), which has been sitting out the pandemic in Bahamian waters, made a surprise arrival in Curacao this week. Industry sources claimed it was being de-stored and bunkered in readiness for a voyage to Aliaga. Carnival would neither confirm nor deny the reports.
While some cruise consumers are up in arms on social media platforms about the destruction of their favourite floating homes away from home, questioning why the ships can’t be kept in lay-up until the industry recovers, in the brutal world of economic reality, it really is the only viable option.
Keeping a cruiseship in lay-up costs money. In April, Donald estimated it would cost Carnival in the region of $1m per month to keep a cruiseship in cold lay-up.
That is a lot of money at a time when most cruise companies are, in the words of one of my esteemed TradeWinds colleagues, being forced to lift the cushions and search for change.
Columnist Terry Macalister is on holiday and will return next week
