Tag Archives: Carnival Cruise Line

The Big Three Cruise Corporations Continue to Burn Cash. Here’s How Much.

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Carnival Corporation, Royal Caribbean Group and Norwegian Cruise Line Holdings are still burning through cash as some ships emerge from lay-up back into operations. 

Cash burn numbers may be up in the third quarter with added costs to reactivate ships, needed maintenance, potential drydocks, procurement, getting crew back and more.

Only one out of the three big cruise companies provided estimates on third-quarter cash burn, indicating it would be up close to 45 per cent. 

Carnival Corporation

For Carnival Corporation, the company’s cash burn for the first half of 2021 was $500 million per month, which was better than a previous forecast of $550. The improvement was mainly due to the timing of cash received from ship sales just before the end of the second quarter and some other small working capital changes.

With ships quickly relaunching, and a short booking window for cruises announced close to departure, the company said it will not provide a forecast for its third-quarter cash burn rate.

Independence of the Seas in Southampton Photo credit Dave Jones

Royal Caribbean Group

Royal Caribbean reported its average monthly cash burn rate for the second quarter of 2021 at approximately $330 million, slightly higher than the prior quarter as the company returned additional ships into operation. 

Similar to Carnival, Royal Caribbean would be not providing a forecast for the third quarter.

“The environment remains fluid, and for this reason, we are not providing a cash burn estimate or the related offsets generated by revenue and new customer deposits. I will highlight that the burn rate for the ships that are kept at layoff is expected to be consistent with our previous expectations,” said Jason Liberty, executive vice president and CFO, on the company’s second-quarter earnings call.

Norwegian Star in Mexico Photo Credit Dave Jones

Norwegian Cruise Line Holdings

Norwegian Cruise Line Holdings said its average cash burn in the second quarter was $200 million per month, higher than its guidance of $190 million driven by the announcement of additional ship relaunches in the company’s voyage resumption plan and the associated restart expenses.

“As for the third quarter, we expect our average monthly cash burn rate to increase to approximately $285 million as restart expenses accelerate with additional vessels entering service,” said Mark Kempa, executive vice president and CFO. “Restart expenses are primarily related to repositioning, provisioning and stopping of vessels, implementing new health and safety protocols and a measured ramp-up of demand-generating marketing investments.”

PortMiami Will Be Shore Power Ready by Fall 2023

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Miami-Dade County, in partnership with Florida Power and Light Company (FPL), Carnival Cruise Line, and Royal Caribbean Group, will be shore power ready at PortMiami by Fall 2023, according to a press release.

Cruise Terminal F, currently undergoing a significant expansion for Carnival and Cruise Terminal A, Royal Caribbean’s signature Miami terminal will be the first facility with shore power capability at the port.

In February 2021, Mayor Daniella Levine Cava launched an initiative to bring shore power to PortMiami in collaboration with Miami-Dade County’s major cruise line partners. The goal is to make Miami the first seaport in Florida and the southeastern U.S. shore power ready.

Since then, Carnival Cruise Line and Royal Caribbean Group have agreed to launch Phase 1 of this program for connections at Cruise Terminals A and F. Additionally, the U.S. Environmental Protection Agency’s Diesel Emissions Reduction Act announced a $2 million grant allocation for Phase 1 of the program.

Plans have already begun implementing the program in phases. Phase 1 at Cruise Terminals A and F will transform the power levels at the Port from the electrical grid to cable management systems for the heavy plugs and outlets on the vessels. This system requires each party to implement improvements on the electrical grid and supply lines, shore-side equipment on the pier, and shore-to-ship connection on the cruise ship. Additionally, PortMiami is working with other cruise line partners to ensure that their designated berths also have shore power connectivity as part of Phase 2.

“Our efforts to make PortMiami ‘shore power ready’ are moving full steam ahead thanks to the incredible work of the PortMiami team, FPL, and the commitment of Carnival Cruise Line and Royal Caribbean Group,” said Mayor Daniella Levine Cava. “Our goal is to continue ensuring PortMiami is a leader in sustainability and to shape a more resilient cruise industry that prioritizes the protection of our environment. We are proud of this big step and look forward to working with other cruise companies for the second phase of this project to make the Cruise Capital of the World more sustainable.”

“As a world leader in renewable energy and sustainability, FPL is pleased to be partnering with Miami-Dade County, PortMiami and our renowned cruise line partners to develop an innovative shore power solution that will both lower emissions by shifting to clean power from FPL and drive modernization,” said Eric Silagy, president and CEO of FPL. “Every day, we deliver America’s best energy value to our customers, energy that’s not just clean and reliable, but also affordable. Now, we are pleased to bring these core values to the cruise industry, as we stand ready to make shore power a reality for PortMiami.”

“In line with our top priorities of compliance, environmental protection and the health, safety, and well-being of our guests, employees, and the people in the communities we touch and serve, we are thrilled to have been one of the first cruise lines to partner with Mayor Daniella Levine Cava and Miami-Dade County in the shore power program at PortMiami,” said Christine Duffy, President, Carnival Cruise Line. “With PortMiami being our busiest homeport and our longstanding relationship with both Miami-Dade and PortMiami, it’s a natural fit to work together to bring this power source to the Cruise Capital of the World.”

“Shore power connectivity allows us to reduce our emissions to near zero while connected in port,” said Richard Fain, Chairman and CEO, Royal Caribbean Group. “In partnership with Mayor Daniella Levine Cava and Miami-Dade County, we’re happy to help bring this technology to our hometown, the Cruise Capital of the World, as part of our sustainability journey and our single-minded focus to be partners to the communities we visit and call home.”

Carnival Cruise Line Changes Face Mask and Testing Rules Fleetwide

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Carnival Cruise Line has changed its face covering and testing policies, according to Brand Ambassador and Senior Cruise Director of Carnival Cruise Line, John Heald.

From Aug. 7, all guests will be required to wear face masks indoors. This includes elevators, shops, casinos, restaurant halls and queuing areas.

“In any (indoor) area where many people are gathered and when you’re not eating or drinking, we are going to require you to wear a face mask, and this is for all guests, not just those who are unvaccinated,” said Heald in a Facebook video.

Additionally, from Aug. 14, all cruises will require all guests to test negative for coronavirus within three days before the sailing.

“That is for all guests, (including) fully vaccinated,” Heald said. “You are going to need a negative antigen test taken within three days of your cruise, and you’ll need to show proof of this.”

Heald explained that Carnival had to introduce these rules in order to “keep cruising going.”

“This is what we have to do, and we ask for your understanding … We have to be careful, and we have to get this right, and we will continue to make whatever changes we need to in order for the fun to continue,“ Heald explained.

According to him, guests cruising with Carnival Cruise Line in the next few months will be notified about the change soon.

The Carnival Pride Oct. 31 sailing will have different rules, Heald noted.