Miami Hoping to Ease Up Cruise Line Guarantees in Support Push

PortMiami is continuing to step up to help the cruise industry, as the officials hope to push through regulations to alleviate cruise lines of minimum passenger guarantees during their recovery phase.

Already waving fees for ships docking for technical and crew repatriation reasons, the port hopes to relieve cruise lines of their minimum annual passenger guarantees, according to a document submitted Miami’s Ports and Tourism Committee. 

This would come in exchange for the cruise lines to “maintain or increase their PortMiami market share relative to other U.S. ports in terms of passenger volumes and/or (2) to guarantee vessel calls; and (3) on a cruise line by cruise line basis, to meet any other additional conditions required by the County Mayor or County Mayor’s designee, if any, in his/her discretion (i.e., return of available weekend berthing rights, modifications to the scope of the County-funded components of construction projects or other County borne construction-related obligations, etc.).”

Cruise lines will be required to pay dockage and wharfage at their minimum contractual rates or those published in Port Tariff No. 010 (tariff rates for the Fiscal Year 2020-21 are $13.12 for wharfage and $0.405 per gross registered ton for dockage), in both cases subject to a 3% annual rate of escalation, according to the documents submitted.

“The passenger shortfall and surplus accounts shall not apply during the Recovery Period, nor shall any additional credits accrue during any portion of the Recovery Period; and Any parking-based incentives granted under their respective preferential berthing rights or terminal usage agreements will be waived throughout the Recovery Period.”

The port said it expects the Recovery Period to last up to 24 months.

Of note, the port explained the fiscal impact through the end of the Fiscal Year 2019-20 of the first phase of the Recovery Period is $55 million, consisting of forgone net revenues derived from cruise wharfage and dockage fees. This has been offset by $35 million in expense reductions resulting from the port.

MSC pushes summer 2021 ex-UK sailings with an all-inclusive offer

 MSC Magnifica

MSC Magnifica photo credit to Dave Jones

Summer 2021 ex-UK sailings are included in a new all-inclusive promotion launched by MSC Cruises.

The early booking promotion sees a premium drinks package included as part of the price on more than 1,000 departures between April and November 2021 from multiple embarkation ports across the world.

The initiative, which covers bookings made until December 2, includes all 22 MSC Magnifica sailings from Southampton on the ship’s second full ex-UK season as well as the Caribbean and Mediterranean fly-cruises.

UK and Ireland managing director Antonio Paradiso said: “After receiving feedback from our agents, as well as loyal customers, and taking into consideration the market landscape we’ve decided now is the right time to launch our latest promotion.

“We are seeing a definite appetite for booking holidays for 2021, however the feedback from the market has been that it has to be the right product at the right price.

“Our all-inclusive promotion is always incredibly popular, however now more than ever it’s important for guests to know that everything is taken care of.

“The all-inclusive price includes service charge and a premium drinks package so there really is nothing additional guests need to worry about.

“We understand the need from consumers to have a product that is great value, easy to understand and flexible which is why we think this promotion, combined with our stress-free cruising programme allowing flexible booking terms is the right promotion to stimulate bookings.”

He added: “We think this promotion provides a great opportunity for agents who we know are receiving enquiries from guests interested in a cruise to convert that initial interest into bookings, and ultimately to get their customers a great deal.”

Sailings from Southampton lead-in at £319 per person for a two-night mini-cruise.

A seven-night cruise on one of the flagship MSC Grandiosa starts at  £644pp.

MSC Cruises to Operate Palumbo Malta Shipyard in New Joint Venture

Antonio Palumbo and Pierfrancesco Vago

MSC Cruises and Palumbo Group today officially announced they have formed a joint venture to operate the Palumbo Malta Shipyard. The news was previously reported by Cruise Industry News earlier this year.

The new joint venture sees MSC Cruises take a 50 per cent stake in the shipyard and become an equal partner alongside the current owner Palumbo Shipyards. The yard has four drydocks of various sizes and will be available to other cruise operators, according to MSC.

The companies said they are planning a major update to the yard, which will become the yard of choice for MSC Cruises’ vessels as well as from MSC Group cargo ships and ferries while continuing to serve the shipyard’s existing clients.

Palumbo Malta Shipyard

Of note will be the potential introduction of cutting-edge technology to allow servicing and repair of the next generation of LNG powered cruise ships being built for the MSC Cruises’ fleet, according to a statement.

Pierfrancesco Vago, Executive Chairman, MSC Cruises said: “I am proud to be forming this joint venture with Mr Palumbo and his group today. This is a natural culmination of our already warm and close relationship that has developed from the professionality he has shown over the years. We look forward to the professional service and repairs our vessels will receive.”

Antonio Palumbo, the founder and Chairman of Palumbo Group, added: “I am happy with this joint venture with the Aponte family because, in addition to having a personal and consolidated friendship over the years, it unites us with common business philosophy. This agreement is not just a financial transaction but is aimed at strengthening our network and is part of a group corporate strategy.

“Today I am proud to expand our services, consolidated over the years thanks to far-reaching experiences, through this partnership with a world-class player. I am sure that the future will prove us right, leading this shipyard to consolidate itself as one of the most important multi-purpose structures in the markets of cruise, merchant and advanced-technology ships, providing refitting services, general maintenance and installation of Eco-Friendly systems where Palumbo Shipyards already holds a leading position. Not least, the whole Maltese community will benefit from a new economic boost.”