For those of us who wondered over recent years if there would ever be a limit to the expanding fleets of the cruise lines, the current crisis has given a resounding ‘yes’ as lines struggle to stay afloat financially while their ships lie idle.
Carnival, the largest company in the business, whose nine brands account for about 45% of the industry world wide, has announced that thirteen of its current 104 ships will be leaving the company, some sold on to other operators, and some set to be scrapped—although the company vigorously rejects the word, preferring ‘recycled.’
The company has named only six of the ships that will be leaving from its various brands, but says that all will be gone within 90 days. Those that have been announced are two Costa ships, Atlantica and Mediterranea, that are going to a new joint venture between Carnival and China’s state shipbuilding company; two from P&O Australia, Pacific Aria and Pacific Dawn, going to smaller competitor Cruise & Maritime; and Costa Victoria and P&O’s Oceana, both of which will be scrap… er… recycled.
There are also sixteen new ships under construction or on order; Carnival says most will be delayed for up to a year, but will not be canceled. According to CEO Arnold Donald “We’re in discussions about timing, about deliveries. The new ships are far more efficient. We would rather regulate demand by disposing of less efficient ships rather than trying to avoid bringing on the new ships. The timing of that is important, but we would like to have the new ships.”
Carnival’s restart for operations from North America and the Caribbean, the largest markets, are on hold at least through the end of September, but its Aida line, which serves a German market will restart soon, with Italy’s Costa to follow in a few more weeks. As schedules are rearranged, the lines will be contacting passengers whose ships will be removed of alternate offers or refunds.
