Silversea Cruises’ choice of Germany’s Meyer Werft for a pair of cruiseships breaks a long-standing relationship with Italian shipbuilder Fincantieri, where it has two newbuildings on order.
Silversea, in which Royal Caribbean Cruises took a 66.7% stake costing $1bn four months ago, has signed a memorandum of understanding for the Evolution class ships, as well as a contract with Dutch shipbuilder De Hoop for a new expedition cruiseship to be named Silver Origin.
Silversea’s switch of allegiance is unlikely to mark a severing of future ties with Fincantieri, although it was no doubt influenced by its incorporation into the stable of Royal Caribbean, which has newbuildings on order at Meyer Werft and its sister yard in Finland, Meyer Turku.
Order backlog
But sources in Italy point to the fact that Fincantieri’s backlog of orders for cruiseships and other vessel types is already bulging, raising questions over whether it could meet Silversea’s delivery requirements. For some time, it has broadcast the fact that it is fully occupied for the next 10 years.
Fincantieri declined to comment when asked by TradeWinds why it did not secure the Silversea order.
Other cruiseship sources suspect it could be a combination of reasons, including not only delivery time but price as well. There is also speculation that Royal Caribbean found Silversea’s existing design too “traditional” and pushed for something more modern and innovative architecturally.
For Meyer Werft, it is also an opportunity to utilise its small dry dock once it has delivered the 55,900-gt Spirit of Discovery to Saga Cruises in June 2019, sources say.
Another factor may have been financing of the deal, with Italian schemes such as the Ministry of Economy and Finance’s SACE export credit guarantee programme possibly already full.
Trusted relationship
Fincantieri chief executive Giuseppe Bono has spoken in the past about his company's “trusted relationship” with Silversea stretching back several years.
As recently as May, Silversea ordered a €320m ($369m), 596-passenger newbuilding, Silver Dawn, at Fincantieri for delivery in the autumn of 2021.
It is a sistership to the 40,700-gt Silver Moon, which is scheduled for delivery by Fincantieri a year earlier. The builder delivered the similar-sized Silver Muse (built 2017) in spring last year.
Fincantieri, with around 20 shipyards on four continents and more than 19,000 employees, saw its cruiseship orderbook swell rapidly in July with two LNG-powered vessels for TUI Cruises and an MoU with Princess Cruises for two LNG-fuelled newbuildings, which at 175,000 gt will be the largest ships ever built in Italy.
Norwegian Cruise Line firmed up an option the same month for a fifth and sixth vessel in its new-generation Leonardo class for delivery in 2026 and 2027. Fincantieri subsidiary Vard also tied up an order for a Hapag-Lloyd Cruises expedition ship and a contract to design and build two expedition vessels for Viking Cruises.
Fincantieri’s backlog at the end of July totalled a record €32bn.
Royal Caribbean Cruises has moved fast to grow the Silversea fleet, which, with the latest trio of newbuildings, will number 14 ships. The Silver Origin will serve the Galapagos Islands, currently covered by the 100-passenger Silver Galapagos (built 1990).
Sources said the Silver Origin is likely to be the option vessel to the 100-passenger, 5,700-gt Celebrity Flora ordered by Royal Caribbean for its Celebrity brand for delivery by De Hoop in the spring of 2019.
That option was meant to be declared in the second quarter of this year, but it appears Royal Caribbean’s acquisition of Silversea led to a rethink. The Celebrity option was pencilled in to be named Celebrity Origin but will now be called Silver Origin.
Tremendous potential
Royal Caribbean Cruises chief executive Richard Fain has said the world’s second-largest cruiseship operator is “helping Silversea grow and realise its ambitions”, adding: “There is tremendous potential in the ultra-luxury and expedition markets”.
Royal Caribbean’s only current link with Fincantieri is its 50% ownership of joint venture TUI Cruises, whose two 161,000-gt newbuildings at the yard are due for delivery in 2024 and 2026.
