Tag Archives: Covid-19

Potential Impact of Indian Crew Suspension

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The industry impact on crewing following Royal Caribbean Group’s temporary suspension of hiring Indian crew due to the COVID-19 situation in the country depends on whether other cruise lines follow suit and when India is deemed “safe.”

India is an important source country for crew recruitment, and many Indians hold key positions in food and beverage and housekeeping, according to the Norwegian Seafarers Union (NSU).

The NSU said that the latest estimates (2018)) showed that approximately 15 per cent of crew and staff came from India, compared to 30 per cent from the Philippines and 11 per cent from Indonesia.

Recruiting and crewing companies surveyed by Cruise Industry News said they are continuing to recruit globally, including the Philippines, Indonesia and China, while following protocols of testing prior to travel, protective measures while travelling and testing and quarantine upon arrival onboard vessels.

Meanwhile, the companies are taking a “wait and see” position in India, where travel restrictions have been put in place and flights are cancelled for the time being.

If the situation in India does not improve in the near term and the crewing and travel restrictions continue, it could lead to a shortage of seafarers holding key positions as the industry ramps up for its return to service, according to the NSU.

There is also concern that the spike in India may spread to other countries in Asia, and if that were to be the case it would pose a bigger challenge for the restart of the industry.

While American ports have recently announced programs to vaccinate seafarers, including foreign seafarers aboard cruise ships, the home countries of many seafarers have so far not prioritized their vaccination.

Reports from the April 19-23, 2021 meeting of the Special Tripartite Committee of the Maritime Labor Convention 2006 made available to Cruise Industry News, show the IMO, the ILO and other international organizations calling on governments to prioritize seafarers and aircrew in their national vaccination programs together with other essential workers.

While the countries that ratified the MLC 2006 are obligated to ensure the health and safety of seafarers, COVID-19 testing and quarantine measures have also been applied disproportionately to seafarers, according to the reports.

Amond the demands of the Special Tripartite Committee are that member countries shall in cooperation with shipowners and seafarers organizations procure vaccines for inoculation of seafarers in their country of residence or other appropriate locations, including ports of call.

Governments are also called upon to establish vaccination hubs for seafarers in ports where there is sufficient capacity.

Royal Caribbean to Temporarily Stop Hiring Indian Crew

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Royal Caribbean International has made the decision to immediately suspend incoming crew movement from India, according to a letter sent from the company and report by Crew Center. The letter was later obtained by Cruise Industry News.

The company said it was “based on various reasons and related to recently announced travel restrictions and complexities with crew movement to and from India,” where COVID-19 cases continue to rise.

Those crew members who are currently at hotels pending joining a ship, or are currently en route (already flying) will also be notified and accommodation will be provided to them under quarantine guidelines untll further notice, according to the cruise line.

Indian crew have confirmed that their assignments have been cancelled due to developing travel restrictions.

“It’s not the way we want to operate but it is the reality of quick changes we need to make based on different reasons that are often unplanned or beyond our direct control,” Royal told crew members that saw their assignments cancelled.

Cruise Shares Rise as CDC Outlines Quicker Path to Sailing’s Return

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Port of Miami.

Cruise shares advanced after the U.S. Centers for Disease Control and Prevention outlined a new path to the resumption of voyages.

According to the new guidance in a letter to companies on Wednesday, ships can return to U.S. waters with paying customers if 95% of guests and 98% of the crew are vaccinated, bypassing a previous requirement for starting with trial voyages, according to a summary provided by a person with knowledge of the matter, who asked not to be named discussing private communications. The letter was previously reported by USA Today.

Royal Caribbean Cruises Ltd. rose as much as 5.7% to $92.45 in New York trading. Carnival Corp., the industry market-share leader, rose as much as 4.8%, and Norwegian Cruise Line Holdings Ltd. advanced as much as 7.1%.

On Thursday, Royal Caribbean alluded to the letter in its quarterly business update, saying the message had addressed some of the company’s “uncertainties and concerns.” Royal Caribbean said it now sees a pathway to sailing from the U.S. again during the Alaska cruise season, which runs from roughly May to September.

The CDC didn’t immediately respond to a request for comment.

The U.S. cruise industry has been essentially banned from operating via U.S. ports since the beginning of the Covid-19 pandemic in March 2020. The companies have recently ramped up lobbying efforts to win approval for a return, arguing in part that the industry was unfairly singled out for the strictest treatment even as other tourism businesses have returned in some fashion.

CDC Checklist

Technically, the CDC lifted its hard ban on cruising in October, but it replaced it with a checklist for restarting cruises that no operator has yet managed to complete. The industry had previously criticized the conditional sailing order as overly burdensome and out of touch with the new reality since the arrival of Covid inoculations. Florida, where the major cruise companies are headquartered, even sued the federal government to hasten the return of the industry.

But Royal Caribbean said the recent discussions with the CDC have turned more productive.

“They have dealt with many of these items in a constructive manner that takes into account recent advances in vaccines and medical science,” Royal Caribbean said Thursday in its first-quarter business update.

The company reported revenue totalling $42 million, which was slightly better than expected by analysts tracked by Bloomberg.

It said it has started to spend slightly more cash to cover expenses related to restarting the fleet. Royal Caribbean also noted that cumulative advanced bookings for the first half of 2022 are “within historical ranges and at higher prices” to its 2019 pre-pandemic baseline.