The Silversea incident and Russia relations

By Tom Stieghorst
*InsightIt’s getting chancier to plan a cruise that includes a stop in Russia.

Relations between Russia and the West are turning frosty following the downing of a Malaysian Air passenger jet near the Russian border with Ukraine.

The U.S. and European Union countries have escalated sanctions on top individuals in Russia and added sanctions affecting the financial, oil and military sectors.

Now comes the news that passengers aboard a Silversea Cruises ship were denied entry at a small port in the Russian Pacific. Why they stayed on the ship remains murky.

A preponderance of the passengers on the Silver Discoverer, a small expedition ship, are from the U.S., Great Britain, Germany and Australia, and the local Siberia Times quotes a Russian tour organizer in the port of Provideniya saying that orders denying them entry “allegedly” came from Moscow.*TomStieghorst

A spokesman for the Russian security service told a Russian news website that the passengers lacked the necessary paperwork.

In a statement, Silversea said its ship had received all the necessary clearances for passage into the Chukotka area of Russia and guests and crew had been cleared by immigration, but on arrival July 28, they were denied landing by the Russian authorities.

Spokesman Brad Ball said the line was given no explanation at all.

The ship was sailing a 12-day itinerary from Seward to Nome and was scheduled to call in the Chukotka region on the final few days of the voyage. A new itinerary has been established in Alaska for the rest of the trip.

Port calls in the nearby region of Kamchatka are still being permitted.

If this is merely a regional matter, the impact is limited because relatively few cruise ships visit Pacific Russia. But other regions are more important. Royal Caribbean Cruises Ltd. has said demand for cruises in the Black Sea the rest of this year has been “strained” by Russian’s annexation of Crimea.

Travelers considering a Baltic cruise should keep a close eye on things lest sanctions affect debarkations in St. Petersburg, the crown jewel of the cruise industry’s Baltic trade.

Meyer Werft combines forces with STX Finland – and confirms my ship 5 and 6

The Meyer Werft is combining forces with STX Finland: After numerous talks on closer cooperation with the cruise shipyard STX Finland in Turku now a stake in Papenburg shipbuilders agreed.
With its 70% share the Meyer Werft takes over the operational management of the Finnish shipyard. In Finland, currently about 1300 directly employed people work at the cruise ship Mein Schiff 4 for the German shipping company TUI Cruises.
The Hamburg shipping company TUI Cruises, a joint venture between TUI and Royal Caribbean Cruises Ltd.. (RCCL), now announced two more ships of this class also has to be ordered (My ship 5 & 6) in Turku. STX Finland is a proven specialist for cruise ships and a shipyard with very high technological know-how.
Positive effects are given by a higher flexibility to the customers.
Even with a future even stronger, common approach in the area of ​​research and development in the cruise market, and mutual learning among the workflows positive synergies are possible. “We are strengthening all sites equally.Positive effects are given by a higher flexibility to the customers.
Even with a future even stronger common approach in the area of ​​research and development in the cruise market, and mutual learning among the workflows positive synergies are possible. A staff reduction in Lower Saxony, Mecklenburg-Western Pomerania or in Finland are not an issue, “says CEO Dr. Jan Meyer.
With the Land a contract to secure sites in Papenburg is even being discussed. This makes it very clear that it is not about a shift from capacity, but to a significant strengthening of the bundled competence in the European cruise industry. The acquisition is currently subject to confirmation by the participating financial institutions as well as the approval of the Federal Cartel Office.

RCCL aims to double earnings per share over next three years

By Tom Stieghorst
Royal Caribbean Cruises Ltd. (RCCL) set a dual goal of boosting its return on invested capital to double digits and doubling its 2014 earnings per share over the next three years.

The “Double-Double” program was announced in its second-quarter earnings report, which showed net profit soared to $137.7 million, up from $24.7 million a year earlier.

In publicly announcing its financial targets, RCCL said “articulating clear and specific goals helps guide internal decision-making as well as better informing investors of the path of the business.”

Net yields for the quarter were up 2.6%, at the top of RCCL’s guidance, driven by strong booking trends for Europe and China sailings. There was continued softness in the Caribbean.

RCCL said that because of the strong quarter, it was boosting 2014 projected profit by $22 million to a range of $755 million to $777 million.

Second-quarter revenue rose to $1.98 billion from $1.88 billion a year earlier.