Coin ceremony held for MSC Cruises’ first LNG-powered ship

Construction Begins on 205,700 Gross Ton MSC Europa

The traditional coin ceremony has taken place for MSC Cruises’ first liquified natural gas-powered ship, MSC World Europa.

The ceremony, which is a historical sign of blessing at the start of a ship-building process, took place at the Chantiers de l’Atlantique shipyard in Saint-Nazaire on Monday.

The 200,000-plus gross ton MSC World Europa is scheduled to enter service in 2022 and will be “one of most technologically- and environmentally-advanced LNG-powered cruise vessels in its class”, the line said.

Pierfrancesco Vago, executive chairman of MSC Cruises, said: “MSC World Europa is further proof of our commitment to environmental stewardship as she is set to reduce carbon emissions even further than many other existing cruise ships powered by LNG, which is currently the most environmentally-friendly fuel for commercial maritime operations.

“With this vessel, we also reconfirm our belief in investing in advanced environmental technology to meet our long-term goal of zero emissions from operations.”

Laurent Castaing, general manager of Chantiers de l’Atlantique, added: “We are proud to start the building of a ship which will set the standards for the cruise of the future. This is a major milestone in the history of our 20-year cooperation with MSC Cruises, which has already resulted in some of the most innovative cruise ships ever built.”

MSC Europa Itinerary, Current Position, Ship Review | CruiseMapper

MSC World Europa will feature a new 50-kilowatt demonstrator system that incorporates solid oxide fuel cell (SOFC) technology and uses LNG to produce electricity and heat onboard, the first time an LNG-powered fuel cell has been used on a cruise ship.

The line says the system will reduce emissions of greenhouse gases by about 30% compared with a conventional LNG engine, with no emissions of nitrogen oxides, sulphur oxides or fine particles.

MSC World Europa will also feature a new generation wastewater treatment system and other “cutting-edge environmental technology”.

MSC Cruises’ new flagship MSC Virtuosa is currently under construction in Saint-Nazaire and is due for delivery in 2020. The company also has firm orders with Chantiers de l’Atlantique for two additional LNG-powered ships, once each for the MSC World and Meraviglia classes of ships.

MSC Cruises USA Furloughs 128 Staff

Dawn with MSC Poesia in the background.

According to a filing with the state of Florida, MSC Cruises USA has furloughed 128 employees, citing the COVID-19 crisis.

The furloughs include 55 cruise consultants, 10 home-based cruise consultants, five contact centre supervisors, eight group advocates and various other titles.

The company has its U.S. headquarters in Ft. Lauderdale, Florida, and said it hopes the furloughs are temporary.

MSC has four ships based in the United States with aspirations to grow. The Seaside, Armonia, Divina and Meraviglia serve the U.S. market.

It’s not a great time to woo first-time cruisers

Cruise ships in Costa Maya, Mexico.
Cruise ships in Costa Maya, Mexico. Photo Credit: Byvalet/Shutterstock

In January, Jessica Fricchione and 10 of her family members booked what would have been her first cruise, a Bermuda sailing out of Baltimore leaving on May 31.

Due to the coronavirus crisis, the group’s sailing was cancelled — and they have no interest in taking a future cruise credit.

“No one in the family wants to book a cruise again,” she said, adding that they were looking into a stay at an all-inclusive resort instead. “I don’t ever, ever want to be stuck on a cruise ship.”

Justified or not, the cruise industry’s reputation took a hit from the high-profile Covid-19 outbreaks on a handful of ships in March and April.

Industry stakeholders acknowledge that media coverage of those ships being turned away from ports and, in some cases, of passengers being quarantined in their cabins for weeks on end is most likely to have an impact on the potential-cruiser set.

In a media call last month, Carnival Corp. CEO Arnold Donald said there was “no question” that the media attention would have an impact on that market segment.

“There have been people who may have been considering [a cruise] who would be having second thoughts at this point in time,” he said.

The first-time cruiser has always been considered critical to the growth of cruising. Despite CLIA lines’ global passenger growth of about 60% since 2009, to 30 million in 2019, cruising is still vastly underpenetrated compared with other vacations: 11.9 million Americans cruised in 2019, only about 3% of the population.

Travel advisors expect that the crisis will cause a decline in the new-to-cruise market.

“When you’re dealing with first-time cruisers, you typically have to overcome some fear of the unknown with cruising, such as seasickness, boredom, claustrophobia,” said Anthony Hamawy, President of Cruise.com. “The current negative press around cruising will add to those fears.”

Signature Travel Network CEO Alex Sharpe said that those who’ve never been on a cruise can’t draw upon personal experience to put into perspective what they are seeing and hearing from the media.

“If you’ve been watching the news and you’re not a cruiser and you can’t put what [ships with Covid-19 outbreaks] have been through in any context with your own family’s great times on a ship, it’s hard to reconcile that and say, ‘That’s my next vacation,’” Sharpe said. “I think new-to-cruise will take a hit in the short term. That will take some time.”

Some cruise lines have found that booked passengers who were new to cruise have been more likely to cancel cruises they had booked during the current operations pause.

Mark Conroy, Silversea Cruises’ managing director of the Americas, said that new cruisers have been more likely than past passengers to cancel and take a refund versus a future cruise credit because they are “more nervous.”

Loyalty program members “will come back first,” he said. “They’re the people that know us and love us and travel with us every year or every other year. They’re the ones that are eager to go.”

Repeat cruisers will lead the way

Many think that those who were once potential cruisers and are now on the fence can be swayed back once cruise lines are up and running.

Charles Sylvia, CLIA’s vice president of membership and trade relations, said that there will be “more challenges ahead with regard to the first-time cruisers” but that people returning from cruises with positive stories will put them at ease.

“Once they see the resumption of operations and once they see friends and family members and co-workers going on cruises and coming home with that same level of enthusiasm and satisfaction, then they will be back — the first-time cruisers will come to us,” Sylvia said.

Donald also said that returning cruise passengers, as well as travel advisors, will be the most important messengers in overcoming the additional concerns non-cruisers have. He added that this is something the industry is accustomed to dealing with.

“We were busy knocking down myths before, and we’ll have to return to that,” he said, adding that the two “most powerful ways” to do that is through travel advisors, “with their knowledge and experience and personal relations with their clients,” and the passengers, who will “provide the kind of testimonials and credibility with their friends and colleagues and relatives.”

And as has always been true for travel coming out of every crisis, for some people, the right price is a big persuader.

“I think, with time, this will be overcome because the vacation value will ultimately win out,” Hamawy said.