Carnival Corp is among the first shipowners to warn of the financial impact the collapse of the Francis Scott Key Bridge in Baltimore could have on its bottom line this year.
“Given the timing of yesterday’s event in Baltimore and the temporary change in home port, our guidance does not include the current estimated impact of up to $10m on both adjusted Ebitda and adjusted net income for the full year 2024,” the company said in its first-quarter earnings release.
“The city and the Port of Baltimore have been our long-time partners and a home to many loyal guests, as well as business and community colleagues,” Carnival Corp chief executive Josh Weinstein said.
“We proudly sail year-round out of Baltimore through one of our Carnival Cruise Line ships which was scheduled to return this weekend.
“Fortunately, our team has quickly secured a temporary home port in Norfolk for as long as it is needed, which should help to minimise operational changes. So, we look forward to getting back to our home in Baltimore as soon as possible,” Weinstein added.
The 2,124-berth Carnival Legend (built 2001), which is scheduled to return from a voyage on Sunday, will be rerouted, the cruise line confirmed.
The Port of Baltimore could reopen in May, according to one logistics executive who has cargo on board the 10,000-teu containership Dali (built 2015).
“I don’t think this closure is going to last that long, maybe six weeks or something like that is what I’m hearing,” said Jim Monkmeyer, president of transportation at DHL Supply Chain, told Bloomberg.
Carnival also disclosed it took a $130m hit from rerouting itineraries that touch the Red Sea due to ongoing hostilities against US-linked shipping by the Houthis.
At the beginning of 2024, Carnival confirmed it would be diverting a number of its cruise ships around the Cape of Good Hope due to the deteriorating security situation.
The company said it had made the decision to reroute itineraries for 12 ships across seven brands, which were scheduled to transit the Red Sea up to May 2024.
On Wednesday, Carnival said it will probably not be sailing through the Red Sea region for the rest of this year and early next year given the continuation in hostilities.
“We decided that it was time to recognise the fact that we probably won’t be sailing there, and perhaps for the rest of this year and perhaps early in 2025 as well,” chief financial officer David Bernstein told Reuters in an interview.
