Majority of NCL ships are transitioning to cold layup (4/27/20)

[fstuff1]

https://www.seatrade-cruise.com/news/nclh-sees-q1-and-2020-loss-bookings-still-coming-half-canceled-voyages-seek-refunds

 

all 28 ships in the company’s fleet are in safe haven in port or at anchor. The majority of ships are transitioning to cold layup. 

 

Cold layup: https://gcaptain.com/the-unwanted-ships-how-to-lay-up-a-vessel/

In a cold lay-up vessels are only supplied with emergency energy for lights, windlass / mooring winches and fire extinguishing – often by portable generators installed on deck. Depending on the length of lay-up, three weeks or more should be expected for re-commissioning.

 

 

if it takes at least 3weeks to prep ships back to sailing shape, it sounds like NCL is not expecting cruises till at least the 100day no sail order, July 27 2020, and probably longer.

i wouldnt be surprised if some of the ships stay on cold layup for the rest of the year. 😞

 

Edited April 27, 2020 by fstuff1

[Gershep]

Thanks for posting.

[GA Dave]

The airlines did this a lot quicker.  Google for videos or pictures from the Tulsa or Pittsburgh airports and you will see AA aircraft filling the ramps and taxiways.

Tulsa International

Edited April 27, 2020 by GA Dave

[Sand and Seas]

Thanks for links to these articles.  Very informative!

 

It will be interesting to see where they will choose to 'lay-up' the ships.  That might give us a clue as to how long they expect the lay-up to last and which ships might be put back into service earlier than others.  (Avoiding hurricane season?)

[hallux]

I believe @chengkp75 wrote up in another thread exactly what it will mean for putting a ship into cold layup, or maybe I saw it in a video by a cruise vlogger on YouTube?

[Georgia_Peaches]

Thank you for posting...and for summarizing the content in the links.  Cold layup is new vocabulary for me.  Very interesting.  So it makes sense to bring ships to the minimum in order to save on costs.  Three weeks to re-up a ship seems pretty reasonable considering all that must go into this process.  But, I agree that it certainly pushes out the time table.  I just read an article in another thread that discusses talks for opening up Europe to vacationers (within Europe)...not ships, but it's a start.  I think that once countries start to test the waters and get some positive results (no spike) we will see some revival of some of those ships....This year?  Nobody knows.

[chengkp75]

I don't believe that any cruise ship will go into "cold lay up", merely "warm lay up".  First off, most are not in protected enough anchorages to allow the minimal crew a "cold" lay up uses, and still maintain their certificates of class and any form of insurance.  Secondly, it is a far different thing to "cold lay up" a cargo ship than a cruise ship.  The accommodation block on a cargo ship is far smaller and far more spartan than a cruise ship interior, and if not sealed and dehumidified properly, the cruise ship will start to rain humidity inside, and result in massive mold issues.  I believe that the ships will have the minimum statutory manning (somewhat less than normal deck and engine personnel, only a few hotel staff to cook meals for the remaining crew), and will continue to power the ship with one ship's generator.  They may install package generators, like Carnival did as "back ups" after the Triumph fire, and wire these into the ship's systems, but these will be marginal for keeping the entire ship at a reasonable humidity level, especially if they don't seal off all the outside vents, windows and doors.  Actual "cold lay up" is more mothballing, and envisioning years of inactivity.

[graphicguy]

1 hour ago, chengkp75 said:

I don't believe that any cruise ship will go into "cold lay up", merely "warm lay up".  First off, most are not in protected enough anchorages to allow the minimal crew a "cold" lay up uses, and still maintain their certificates of class and any form of insurance.  Secondly, it is a far different thing to "cold lay up" a cargo ship than a cruise ship.  The accommodation block on a cargo ship is far smaller and far more spartan than a cruise ship interior, and if not sealed and dehumidified properly, the cruise ship will start to rain humidity inside, and result in massive mold issues.  I believe that the ships will have the minimum statutory manning (somewhat less than normal deck and engine personnel, only a few hotel staff to cook meals for the remaining crew), and will continue to power the ship with one ship's generator.  They may install package generators, like Carnival did as "back ups" after the Triumph fire, and wire these into the ship's systems, but these will be marginal for keeping the entire ship at a reasonable humidity level, especially if they don't seal off all the outside vents, windows and doors.  Actual "cold lay up" is more mothballing, and envisioning years of inactivity.

Thanks.  

[EscapeFromConnecticut]

The relevant facts for cruise fans: Norwegian and CCL are putting a lot of ships into long-term parking.     

NCL yesterday announced "The majority of ships in the Company's fleet are currently transitioning to cold layup."    (This is found in bullet point 1 of the COVID-19 plan linked below)

 

https://www.globenewswire.com/news-release/2020/04/27/2022503/0/en/Norwegian-Cruise-Line-Holdings-Ltd-Provides-Business-Update.html

In early April, CCL announced “We currently estimate the substantial majority of our fleet will be in prolonged ship layup.”

https://www.carnivalcorp.com/static-files/8912eb63-49dd-4a1e-856a-8c2e316b3316

The cold reality is that cruising simply is NOT coming back in the foreseeable future.

The realists on CC have been saying this for more than a month, while the "optimists" denied or angrily dismissed fact after fact. But none of that changed reality: Cruise lines are cutting staff and work hours, shipping crew members home, and parking ships. Those are not the actions of companies that plan a return to business shortly.

So if some CC members wish to keep building their expectations while putting down $$ for trips that won't happen, well ... enjoy. But the rest of CC members can save themselves disappointment and expense by looking beyond phony "optimism."   

Edited April 28, 2020 by EscapeFromConnecticut

[graphicguy]

Interesting reading regarding NCL's PR.  Have to read the good as well as the bad.  The good...

 

“We believe the disruption to the travel industry, while swift and severe, will eventually subside. Our guests continue to demonstrate their desire for cruise vacations as we continue to experience demand for voyages further in the future across our three brands. When the time comes, we will be ready to safely resume operations and welcome our loyal guests on board.”

 

"As of March 31, 2020, the Company had $1.8 billion of advanced ticket sales. This includes approximately $850 million for previously announced voyage cancellations through June 30, 2020 where guests have the option of either a future cruise credit or a cash refund and approximately $350 million for voyages scheduled for the remainder of 2020. Norwegian also continues to take future bookings for 2020, 2021 and 2022, and receive new customer deposits and final payments on these bookings."

 

"

The Company has identified approximately $515 million of capital expenditure reductions, comprised of:

• $345 million, or a nearly 70% reduction of non-newbuild capital expenditures for the remainder of 2020.
• Approximately $170 million in expected reduced and deferred capital expenditures for newbuild related payments through March 31, 2021 which the Company is currently finalizing. Upon completion, the Company’s next newbuild related payments would not be until April 2021.  "

 

In addition, they outlined that they have effectively negotiated a 12 month debt "holiday" and essentially stopped all new build expenditures for at least a year.

 

Again, I see them sailing again this year.  It may be as soon as July, or as late as November.  Maybe not all of their ships, but I see them sailing.

[LHP]

5 hours ago, EscapeFromConnecticut said:

The relevant facts for cruise fans: Norwegian and CCL are putting a lot of ships into long-term parking.     

NCL yesterday announced "The majority of ships in the Company's fleet are currently transitioning to cold layup."    (This is found in bullet point 1 of the COVID-19 plan linked below)

 

https://www.globenewswire.com/news-release/2020/04/27/2022503/0/en/Norwegian-Cruise-Line-Holdings-Ltd-Provides-Business-Update.html

In early April, CCL announced “We currently estimate the substantial majority of our fleet will be in prolonged ship layup.”

https://www.carnivalcorp.com/static-files/8912eb63-49dd-4a1e-856a-8c2e316b3316

The cold reality is that cruising simply is NOT coming back in the foreseeable future.

The realists on CC have been saying this for more than a month, while the "optimists" denied or angrily dismissed fact after fact. But none of that changed reality: Cruise lines are cutting staff and work hours, shipping crew members home, and parking ships. Those are not the actions of companies that plan a return to business shortly.

So if some CC members wish to keep building their expectations while putting down $$ for trips that won't happen, well ... enjoy. But the rest of CC members can save themselves disappointment and expense by looking beyond phony "optimism."   

excellent information 
 

May I please ask for some guidance .

 

The CCL filing is 113 pages of tiny print my old eyes can not see.

 

Can you please direct me to the section you quoted ?

 

I totally believe you but I have cruise friends that demand documentation.

 

Thanks 

[EscapeFromConnecticut]

1 hour ago, LHP said:

excellent information 
 

May I please ask for some guidance .

 

The CCL filing is 113 pages of tiny print my old eyes can not see.

 

Can you please direct me to the section you quoted ?

 

I totally believe you but I have cruise friends that demand documentation.

 

Thanks 

  
Surely, thanks for asking.  Page 24, the final paragraph.  (heading: Ongoing ship and administrative operating costs).
 

  

[LHP]

22 minutes ago, EscapeFromConnecticut said:

  
Surely, thanks for asking.  Page 24, the final paragraph.  (heading: Ongoing ship and administrative operating costs).
 

  

 

found it !! 
 

THANK YOU !!

[OceanBlueWaters]

5 hours ago, graphicguy said:

Interesting reading regarding NCL's PR.  Have to read the good as well as the bad.  The good...

 

“We believe the disruption to the travel industry, while swift and severe, will eventually subside. Our guests continue to demonstrate their desire for cruise vacations as we continue to experience demand for voyages further in the future across our three brands. When the time comes, we will be ready to safely resume operations and welcome our loyal guests on board.”

 

"As of March 31, 2020, the Company had $1.8 billion of advanced ticket sales. This includes approximately $850 million for previously announced voyage cancellations through June 30, 2020 where guests have the option of either a future cruise credit or a cash refund and approximately $350 million for voyages scheduled for the remainder of 2020. Norwegian also continues to take future bookings for 2020, 2021 and 2022, and receive new customer deposits and final payments on these bookings."

 

"

The Company has identified approximately $515 million of capital expenditure reductions, comprised of:

• $345 million, or a nearly 70% reduction of non-newbuild capital expenditures for the remainder of 2020.
• Approximately $170 million in expected reduced and deferred capital expenditures for newbuild related payments through March 31, 2021 which the Company is currently finalizing. Upon completion, the Company’s next newbuild related payments would not be until April 2021.  "

 

In addition, they outlined that they have effectively negotiated a 12 month debt "holiday" and essentially stopped all new build expenditures for at least a year.

 

Again, I see them sailing again this year.  It may be as soon as July, or as late as November.  Maybe not all of their ships, but I see them sailing.

Do you have a cruise booked for that time frame (July thru November)?  Are you a "Guinea Pig" who will venture on Cruise Ship with unknown restrictions?  Do you have inside info about guidelines? Crystal Ball?  Just wondering.. 

 

It's so easy for people to predict and it continuously hurts my ribs from laughing so much. LOL!

 

JMO

[luv2kroooz]

8 hours ago, EscapeFromConnecticut said:

So if some CC members wish to keep building their expectations while putting down $$ for trips that won't happen, well ... enjoy.

Well said. It is fly and cruise at your own risk until a vaccine is found.....and it pains me to write that...☹️

[graphicguy]

35 minutes ago, OceanBlueWaters said:

Do you have a cruise booked for that time frame (July thru November)?  Are you a "Guinea Pig" who will venture on Cruise Ship with unknown restrictions?  Do you have inside info about guidelines? Crystal Ball?  Just wondering.. 

 

It's so easy for people to predict and it continuously hurts my ribs from laughing so much. LOL!

 

JMO

Nothing booked yet.  But, pricing some out.  Guinea Pig?  No.  I'm just not nearly as fearful as some here seem to be.  Some here see the glass nearly empty.  I see it nearly full, with an opportunity to fill it to the brim being early to the party.

 

I believe that all the "lockdowns" eventually have to show some good results.  And, that they'll present themselves sooner rather than later.  I don't think it will magically go away.  But, I do think with all the precautions the industry is taking, traveling on a plane and/or ship are probably the safest moving forward.

[krisdamom]

Thank you to fstuff1 and EscapeFromConneticut for the helpful information & associated links you have posted re NCL & "cold layup".  After investigating these links and the term  "cold layup" itself, I found myself at the site for 'Cruise Industry News' with many helpful articles. As I scrolled down the list of articles, I saw this from a posting from yesterday, April 27, 2020, entitled 'When Norwegian Cruise Lines May return to Service'  : "A look at the expected first sailing of each Norwegian Cruise Line ship as the cruise industry gets back into service (all information is subject to change due to the COVID-19 crisis)" 

https://www.cruiseindustrynews.com/cruise-news/22834-when-norwegian-cruise-line-ships-may-return-to-service.html?fbclid=IwAR2skXVUrgTc_I68a1hp_1P0nveUauuUjaG3rRHx6Ax3UWGWZUAKdzqRIeY

 

[hallux]

This video tries to describe cold layup, warm layup and one other state of readiness for cruise ships.  I'm not sure of the accuracy but it seems like a comprehensive description.  If they're staying at an anchorage in the Bahamas, cold layup is probably not likely.

 

 

[OceanBlueWaters]

9 minutes ago, graphicguy said:

Nothing booked yet.  But, pricing some out.  Guinea Pig?  No.  I'm just not nearly as fearful as some here seem to be.  Some here see the glass nearly empty.  I see it nearly full, with an opportunity to fill it to the brim being early to the party.

 

I believe that all the "lockdowns" eventually have to show some good results.  And, that they'll present themselves sooner rather than later.  I don't think it will magically go away.  But, I do think with all the precautions the industry is taking, traveling on a plane and/or ship are probably the safest moving forward.

Kudos to all who have overcome COVID-19 in their states. 

Some states are still foraging for food including my State of NJ. Insane?!

Nope. Not travelling via Air/ship anytime time soon.

Can you give specifics about precautions how the Cruise Industry/Airlines will ease my pain about traveling?  Safe?  Are you an expert? What are their guidelines? What are your qualifications to assume ships/planes are the safest places to be?

Thanks 🙂

JMO 🙂

[zqvol]

23 hours ago, GA Dave said:

The airlines did this a lot quicker.  Google for videos or pictures from the Tulsa or Pittsburgh airports and you will see AA aircraft filling the ramps and taxiways.

Tulsa International

 

Alaska and AA are all over the ramp at GSO

[OceanBlueWaters]

12 minutes ago, hallux said:

This video tries to describe cold layup, warm layup and one other state of readiness for cruise ships.  I'm not sure of the accuracy but it seems like a comprehensive description.  If they're staying at an anchorage in the Bahamas, cold layup is probably not likely.

 

 

Sure.  Support another YouTuber who makes RIDICULOUS PROFIT reporting ridiculous stuff.  I can do that!  You can too!

 

JMO 🙂

[graphicguy]

33 minutes ago, OceanBlueWaters said:

Kudos to all who have overcome COVID-19 in their states. 

Some states are still foraging for food including my State of NJ. Insane?!

Nope. Not travelling via Air/ship anytime time soon.

Can you give specifics about precautions how the Cruise Industry/Airlines will ease my pain about traveling?  Safe?  Are you an expert? What are their guidelines? What are your qualifications to assume ships/planes are the safest places to be?

Thanks 🙂

JMO 🙂

Yeah....NJ/NY are in a whole different league as far as COVID 19.  NCL in particular is looking to cruise to Caribbean and Alaska in July.

 

Pretty well published that the cruise ships, at least initially, will sail at 50%-60% capacity.  Buffets are only going to be served by crew.  Boarding will take longer as there will be more stringent passenger health scrutiny, every time passenger and crew disembark and then re-embark.

 

Anyone 70 and over will require a Dr’s note to sail.  There’s even talk that EVERYONE will have to have a Dr’s note stating they are in good health to board.  

 

Having done Behind the Scenes tours, I can say that cruise ships are some of the cleanest areas of anywhere I’ve ever been (including my own home, which I’m fastidious about).  Now, it’s going to be even more stringent.

 

There might be some ports that the ships won’t go, just because they might pose a risk.

 

Many more processes going on that you can find.  But, the ones above are a start.  

 

Hope that answers your question! 

[oteixeira]

1 hour ago, OceanBlueWaters said:

Sure.  Support another YouTuber who makes RIDICULOUS PROFIT reporting ridiculous stuff.  I can do that!  You can too!

 

JMO 🙂

Totally agree, this guy is nothing more then some random guy who likes to take cruises, he doesn't work in the industry, and honestly he leans very heavy to one side of politics, which is a no go for me.  Report the facts, don't tell me why you like or don't like them...

[kwokpot]

3 hours ago, krisdamom said:

Thank you to fstuff1 and EscapeFromConneticut for the helpful information & associated links you have posted re NCL & "cold layup".  After investigating these links and the term  "cold layup" itself, I found myself at the site for 'Cruise Industry News' with many helpful articles. As I scrolled down the list of articles, I saw this from a posting from yesterday, April 27, 2020, entitled 'When Norwegian Cruise Lines May return to Service'  : "A look at the expected first sailing of each Norwegian Cruise Line ship as the cruise industry gets back into service (all information is subject to change due to the COVID-19 crisis)" 

https://www.cruiseindustrynews.com/cruise-news/22834-when-norwegian-cruise-line-ships-may-return-to-service.html?fbclid=IwAR2skXVUrgTc_I68a1hp_1P0nveUauuUjaG3rRHx6Ax3UWGWZUAKdzqRIeY

 

That cruise industry news article is literally nothing and can be written by you and me. All they did was go onto NCL's website, look at the closest dates you can book a cruise, and put that into an article. It's nothing more and nothing less than that.

[hallux]

2 hours ago, OceanBlueWaters said:

Sure.  Support another YouTuber who makes RIDICULOUS PROFIT reporting ridiculous stuff.  I can do that!  You can too!

 

JMO 🙂

 

58 minutes ago, oteixeira said:

Totally agree, this guy is nothing more then some random guy who likes to take cruises, he doesn't work in the industry, and honestly he leans very heavy to one side of politics, which is a no go for me.  Report the facts, don't tell me why you like or don't like them...

Geez, all I was doing was providing a video where I saw a comparison of warm and cold layup of ships.  Did the video provide any info on that?  Some people still didn't seem to understand the terminology, I was trying to provide them some info on that, I don't feel the hostility is warranted.