Carnival UK chief warns over tighter sulphur emissions rules

Carnival UK chief warns over tighter sulphur emissions rulesThe boss of Carnival UK has warned that cruising in northern Europe “is not sacrosanct” as the shipping industry cranks up pressure against tighter planned international rules on sulphur emissions.

Chief executive David Dingle told Travel Weekly that company brands P&O Cruises and Cunard Line have already planned a 28% cut in Baltic and Norway cruises between 2013 and 2015.

Despite a large increase in new ex-UK capacity targeting newcomers to cruise holidays next year, the Baltic region is not a strong draw for new to cruise passengers, suggesting further reductions could be possible.

Dingle spoke after a cross-party group of MPs last week lobbied the government to amend the rules to give the cruise and ferry sectors time to adapt their ships.

The sulphur content of fuel must fall to 0.1% in January 2015 in the North Sea and English Channel to cut pollution.

But Dingle calculated that there was only a “50-50” chance of getting the required breathing space to allow ships to be fitted with the scrubber technology required to clean existing fuel.

The UK Chamber of Shipping wants prime minister David Cameron to lobby Brussels to buy time to allow shipping companies to install the technology.

It estimates that it could take up to two years for every ship to be fitted with the new technology – so the January 1 deadline is seen by the industry as being “entirely unrealistic”.

Dingle said lobbying would be stepped up in the second half of the year ahead of the deadline and warned of the detrimental social and economic impact that would be incurred if ferry companies had to abandon routes and cruise lines were forced to alter itineraries away from regions such as the Baltics and Norway.

DFDS has already announced the closure of the Harwich to Esbjerg route and there are fears that 2,000 jobs could be lost across the country if other routes are forced to closed.

“Northern Europe is not sacrosanct even at a time when cruise lines are starting to grow capacity,” said Dingle.

UK Chamber of Shipping CEO Guy Platten said: “We support the move to reduce sulphur emissions and the introduction of tough new limits.

“But the sharp increase in demand for low sulphur fuel will see a massive spike in costs both for ship owners and potentially for ordinary diesel car users – so we need to use the new technology instead. But that technology is only now beginning to work, and could take up to two years to fit properly to all of our ships.

“Reducing sulphur is a job we agree needs doing, but it needs to be done in a pragmatic way that protects jobs as well as the environment. All we’re asking for is the EU to understand the practical realities we face and give us the time we need to comply.

“A report by [consultants] AMEC recently said if we implement new regulations before the technology is ready, then 2,000 UK jobs could be lost, thousands more lorries will clog up our roads and 12 million tonnes of additional Co2 will be emitted into our atmosphere unnecessarily every year (Travel Weekly June 12).

“We know other countries within the EU share our concerns – but they are waiting for leadership from the UK.

“So this is an issue in Europe where the prime minister can make a real difference, it is a real opportunity for him to stand up for British business in Europe and succeed. We are simply asking that he takes it.”

Carnival promotion rewards Galveston cruise bookings

By Tom Stieghorst
Carnival Cruise Lines said travel agents can earn triple the normal amount of points in its rewards program by booking cruises from Galveston during July.

The line said the promotion, running through July 31, will give agents 450 points for new online bookings from Texas ports, up from the standard 150 points.

Beginning at the 2,500-point level, the points can be redeemed for Carnival logo items, $50 and $100 gift cards, iPads and other items.

Carnival will transfer a third ship, Carnival Freedom, to Galveston beginning in February.

Joni Rein, executive vice president of worldwide sales at Carnival, said the points boost was a thank you to agents that have helped Carnival build business from Galveston.

Carnival Corporation sees Q2 profits treble

Carnival Corporation delivered an improved set of second quarter year on year financial figures and revealed that bookings for the remainder of 2014 are ahead of last year.

The world’s largest cruise conglomerate admitted yields in the current quarter – covering the main summer months – would be affected by a “significant” industry capacity increases in the Caribbean but raised its forecast for full year trading amid falling costs and an improved economic picture.

The group saw profits almost treble in the three months to May 31 to $106 million from $4 million in the second quarter of 2013, based on revenue up to $3.6 billion from $3.5 billion.

Carnival Corporation president and chief executive Arnold Donald said the company had been helped by better than expected revenue and lower cruise costs.

“We benefited from effective marketing initiatives, which combined with a gradually improving economic environment, led to revenue yield improvement for our continental European brands in the quarter compared to the prior year and is expected to continue through the remainder of the year,” he said.

“In addition, we achieved a six percent improvement in fuel consumption.”

Donald said Carnival expects revenue for 2014 to surpass last year’s level.

Advance bookings for the rest of 2014 are slightly ahead of last year and at higher prices, even though bookings for the next three quarters are slightly behind last year.

Donald said: “Collectively our brands are gaining momentum in our efforts to drive higher ticket prices and we continue to expect sequential improvement in revenue yields, despite a more competitive environment in the Caribbean this summer.

“We remain focused on further understanding our guests and refining the exceptional customer experience we provide.

“We have also made significant strides in our efforts to identify opportunities for cross-brand operational efficiencies. This work is still in the early stages, but we are making progress and beginning to see encouraging signs.”

The company hopes to have recovered from multiple cruise ship incidents last year involving Carnival Cruise Lines.

Several ships had power problems, including Carnival Triumph, which stranded passengers for days at sea in squalid conditions in February 2013.

“We believe we have reached a positive inflection point for our company as we return to earnings growth in 2014 and work hard to ensure that growth accelerates in the years to come,” Donald said.

The third quarter saw the introduction of Princess Cruises’ Regal Princess in the Mediterranean and the brand’s first programme of sailings from China on Sapphire Princess.

Costa Cruises announced that it will position Costa Serena in China next year, bringing the company’s total to four ships based in the world’s fastest growing cruise market.

The corporation said it believes it is the largest provider of cruise holidays home-ported in China.