Premarket on Monday, cruise line stocks surged up to the tune of between 20 to 30 per cent based on positive vaccine news.
Carnival Corporation was up 29.16 per cent; Royal Caribbean Group 21.05 per cent; Norwegian Cruise Line Holdings 25.81 per cent and Lindblad Expeditions 17.43 per cent in premarket trading.
The positive momentum was driven by good news from clinical trials evaluating a COVID-19 vaccine from Pfizer and BioNTech. With multiple news outlets reporting vaccine trials were seen as more than 90 per cent effective. Drugmakers may apply for emergency use as soon as later this month.
The trade association representing 95 per cent of the global ocean-going ships says its members will maintain the voluntary suspension of cruise ship operations in the U.S. through the end of the year.
Cruise Lines International Association members include brands of Carnival Corporation, Royal Caribbean and Norwegian Cruise Line, the three largest cruise ship groups. Each made their own separate announcements related to suspending U.S. cruises through the end of the year on Monday.
The voluntary suspension comes less than a week after the U.S. CDC issued framework guidance to resume cruise operations in earnest despite surging cases and recent warnings from government scientists that cruise ship travel exacerbates the spread of COVID-19. The CDC’s No Sail Order, which was first issued in March and later expanded multiple times, expired on October 31.
The framework requires cruise lines to “demonstrate adherence to testing, quarantine and isolation, and social distancing requirements to protect crew members while they build the laboratory capacity needed to test crew and future passengers.”
CLIA said today that extending the sailing suspension through the end of the year will give its members time to implement the extensive measures set out by the CDC and the guidance of outside public health experts.
The suspension has created unprecedented losses for cruise lines and beaten down cruise stocks. According to CLIA, the cruise industry generates over $53 billion in annual economic activity and supports 421,000 jobs in the United States. The cancellation of cruises since for nearly eight months has resulted in estimated losses of more than $25 billion in economic activity and over 164,000 American jobs.
The Association issued the following statement on behalf of its members:
“As we continue to plan for a gradual and highly-controlled return of cruise operations in the U.S., CLIA members are committed to implementing stringent measures to address COVID-19 safety, including 100% testing of passengers and crew, expanded onboard medical capabilities, and trial sailings, among many others. We share a common goal with the U.S. Centers for Disease Control and Prevention (CDC) to protect public health, which has been affirmed and reaffirmed consistently throughout the industry’s response to the global pandemic. As we work to operationalize a path forward, our members have agreed to extend our existing suspension of U.S. operations through December 31. This action will provide additional time to align the industry’s extensive preparation of health protocols with the implementation requirements under the CDC’s Framework for Conditional Sailing and Initial Phase COVID-19 Testing Requirements for Protection of Crew. We recognize the devastating impact that the pandemic continues to have on the 421,000 Americans whose livelihoods are connected directly to cruise operations. We will work with urgency to advance a responsible return to cruising while maintaining a focus on effective, science-based measures to protect public health.”
CLIA’s statement added:
“In the nearly eight months that cruise operations in the U.S. have been suspended, CLIA members have been diligent in the planning and development of rigorous protocols in the interest of the health and safety of passengers, crew and the communities cruise lines serve. The public health protocols that CLIA members have agreed to adopt have been informed by the recommendations of world-class experts in public health and science, as well as the experiences of CLIA member lines who have resumed sailing in Europe and other parts of the world with approval from local and regional governments.”
The two largest US cruise combines will not sail again until the new year at the earliest. The North American brands of Carnival Corporation and those of rival Royal Caribbean Group confirmed an extension of sailings until December 31 – joining Norwegian Cruise Line Holdings, which confirmed an extension of its suspension of cruises across its three brands until the end of 2020. The latest pause affects Carnival Cruise Line, Cunard North America, Holland America Line, Princess Cruises and Seabourn together with RCG lines Royal Caribbean International, Celebrity Cruises, Azamara and Silversea. Global ocean cruising has already been shut down since March due to the Covid-19 pandemic with many lines already cancelling cruises well into 2021. The US last week cleared the way for the cruise ship to resume sailing in American waters from November 1, but have yet to confirm when paying passengers will be allowed on board. The US Centers for Disease Control and Prevention’s ‘Framework for Conditional Sailing Order’ will see cruise lines operate itineraries with no passengers on board to demonstrate the effectiveness of Covid-19 prevention measures and compliance with CDC measures. Carnival Corporation chief executive Arnold Donald, confirming the extension of the pause in operations of its North American brands from December 1 until December 31, said: “Our highest responsibility and top priorities are always compliance, protecting the environment, and the health, safety and well-being of our guests, the people in communities we touch, our crew and shoreside employees. “We continue to work with the U.S. Centers for Disease Control and Prevention, and global government and public health authorities, as well as top medical and scientific experts around the globe, on a comprehensive plan for the eventual restart of cruising in North America. “With their collective guidance, we have developed and continue to update our enhanced health and safety protocols that are in the best interest of our guests, crew and overall public health. “Whenever we restart our cruise operations in the US, we certainly look forward to welcoming our guests onboard.” The date for restarting cruise operations will be communicated by each respective brand and available on their websites, Carnival Corporation said. “The company and its brands are also notifying crew members, travel professionals and other stakeholders,” the group added. RCG said: “Our primary goal continues to be a healthy return to service for our guests, crew and the communities we visit. “As we work with the CDC and others toward this shared goal, Royal Caribbean Group will be extending the suspension of sailings to include those departing on or before December 31, 2020, excluding sailings from Singapore. “Celebrity Cruises has already suspended their full 2020-21 winter programme in Australia and Asia. “Additionally, Azamara has suspended their 2020-21 winter sailings throughout Australia and New Zealand, South Africa and South America. “We will be reaching out to our guests and travel partners to share further details and address any questions or concerns they may have.” Welcoming the CDC’s pathway for return to service announced on Friday, RCG said: “While we are eager to welcome our guests back on board, we have a lot to do between now and then, and we’re committed to taking the time to do things right. “This includes training our crew in new health and safety protocols and conducting a number of trial sailings to stress-test those protocols in real-world conditions.”
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