Brittany Ferries launches first LNG-powered ferry to serve the UK

Salamanca, the newest LNG-powered addition to Brittany Ferries’ fleet took to the water for the first time on 6 January 2021 at China Merchants Jinling shipyard in Weihai, China, where it is under construction.

Thesecond of three E-Flexer-class ships ordered by Brittany Ferries, 42,000-gt Salamanca will join sister ship Galicia which entered service in December 2020. The 215-m vessel will serve a long-distance route connecting the UK with Spain and will carry 1,015 passengers, with over 2.7 km of lane-space to house passenger and freight vehicles.

Salamanca features two Wärtsilä 12V46DF engines generating 13,740 kW each. Electricity production onboard comes with low CO2 emissions and alternators installed on shaft lines produce energy even at low speeds.

All the E-Flexer vessels have been designed with a view to improving the environmental impact and improving efficiency with particular attention given to fuel-efficient propulsion plants and a long, slender hull and bow design. The underwater hull features a friction-reducing silicon paint coating which further reduces fuel consumption while the propeller and rudder design bring improved manoeuvrability.

Bow thrusters work in harmony with articulated rudders, making it possible to facilitate tight turns in the harbour and the system dispenses with the need for stern thrusters. Fin stabilisers minimise roll and reduce vibration.

The newbuild is part of the ferry operator’s fleet renewal strategy as part of a larger five-year recovery plan. While Brittany Ferries said the investment in new ships was made well before the Covid-19 pandemic began, the strategy is expected to help future-proof services by ensuring the continuity of passenger and freight services with a trio of cleaner, more efficient and comfortable vessels.

President Jean-Marc Roué said “In spite of Brexit and Covid which have cost our company several hundred million euros already, I am resolved to remain on our path towards eco-responsibility and energy transition. It is a formal commitment I’ve made: we will continue, despite these crises, to reduce our carbon footprint, to keep on improving our fleet and to contribute to the development of the regions we serve. Salamanca is a good illustration of this. By renewing our fleet today, we are ensuring a return to growth tomorrow and Brittany Ferries and our partners remain confident in the future.”

The facilities for storing LNG will be supplied by Repsol in Spain. Under the terms of the agreement, the fuel company will build two quayside LNG bunkering terminals in the ports of Santander and Bilbao, including a 1,000-m3 storage tank to ensure uninterrupted supply for Salamanca and a future vessel Santoña.

“Passengers expect more comfortable, cleaner, greener vessels and society rightly demands sustainability as a standard. Shipping companies that fail to improve are therefore destined to fail,” said Brittany Ferries chief executive Christophe Mathieu.

“It’s why these E-Flexer ships are so important as we look to emerge from the current crisis. GaliciaSalamanca and Santoña are clear evidence that we are determined to sail towards a sustainable and a successful future.”

Salamanca will join the above mentioned Galicia in 2022 and the third LNG ferry Santoña will follow in 2023.

Carnival Corp. 2020 Outlook

Carnival Corporation provided adjusted earnings guidance for 2020 on today’s Q4 and year-end earnings call from $4.30 to $4.60 per share, compared to 2019 adjusted earnings of $4.40 per share.

Carnival President and CEO Arnold Donald said that he expects cruise revenues to be up approximately 5 per cent on capacity growth year-over-year of 6.6 per cent.

At this point, he said, the company is entering 2020 with a record booked occupancy position but at slightly lower prices.

Donald noted the headwinds Carnival has faced this year, some of which will continue into 2020, including the impact of Cuba being off-limits to cruise calls, events in the Arabian Gulf, Hurricane Dorian, unscheduled drydocks and ship delays, compounded by a decline in market demand in Continental Europe, particularly Germany, while Southern Europe is also challenging.

Noting these as “unusual events,” Donald said they had had a $0.23 negative impact on 2019 earnings.

In order to improve the market situation and accelerate demand growth in Southern Europe, Donald said that two older ships are being removed from the Costa fleet in 2020, following the recent introduction of the new Costa Smeralda. He said the new ship is much more efficient than the ships being removed.

In the UK, Carnival has been able to grow revenue yield despite Brexit, and Donald noted that P&O Cruises’ New Iona is looking at a significant premium over other ships on comparable itineraries.

In North America, the Caribbean is strong and so is Alaska. However, Alaska is seeing what he called an over-concentration of capacity and will need to absorb another industrywide capacity increase of 10 per cent in 2020, on top of a 15 per cent capacity increase in 2019.

As for China, Donald said Carnival will focus on its new joint venture cruise line. Meanwhile, he said, Costa had a good year in China in 2019 and looks forward to another good year in 2020, with more direct business, but is also happy with its charter model.

Carnival will essentially have six new ships in six different markets for the full year in 2020, starting with the Carnival Panorama, which just entered service on the West Coast, the Costa Smeralda in Southern Europe; P&O’s Iona in the UK; the Enchanted Princess in Europe and North America; the Mardi Gras in Florida; and the Costa Firenze in China.

According to Donald, Carnival is also accelerating marketing and media spend in all of its key markets to drive demand in 2020.

Royal Caribbean boss moves to dispel UK cruise concerns

Independence of the Seas in Southampton photo by Dave Jones.

Royal Caribbean Cruises’ boss has moved to dispel concerns that the UK cruise industry faces a bleak future amid ongoing Brexit uncertainty.

Royal Caribbean International last week cancelled Independence of the Seas’ 2020 UK season and announced the ship would operate out of Florida instead to meet the demand for Perfect Day in CocoCay, the line’s new private island in the Bahamas.

The decision left some agents to question whether a soft UK market due to Brexit had prompted the decision – rather than a soaring interest in the $250 million private island which will be served by 11 Royal ships this year.

Speaking on Celebrity Edge’s maiden ex-UK sailing from Southampton on Monday, Richard Fain, Royal Caribbean Cruises’ chairman and chief executive, said: “We are here for the long term, we are not here for the current climate.

“There is no doubt that the UK market will do very well in the long-term and it continues to be our second largest market. We have been here when it has gone through cycles. The cruise industry is not fickle – it is solid and consistent.”

Fain admitted there was “a modicum of uncertainty” in the UK market as confusion continued over when Britain would leave the EU.

But he added that Royal Caribbean International had to move more capacity to North America due to “an extraordinary surge in interest” in Perfect Day, which launched just over a week ago.

“This is a wonderful problem to have,” he said, adding: “That we don’t have enough ships to satisfy the [customer] demand.”

Plans to expand the existing Perfect Day site were being looked at, said Fain. Only a third of the island is currently being used by Royal Caribbean to accommodate passengers.

Fain also added: “We look at the UK market as more than just ships sailing out of the UK. One of the reasons why the UK market has been so attractive to us is Brits are amazing travellers.”

Sailings in the eastern Mediterranean represented “a great opportunity” for Britons looking for fly-cruise options away from the UK, Fain said.