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CCL announces additional ships being disposed of

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The way I read the news release, it appears that 5 more ships under the CCL banners will be disposed of.  Have not heard any details as of yet.

 

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WOW, I will be curious to see which ships will be affected.

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12 minutes ago, crusinbanjo said:

Can you post a link?  Please.  Thanks

Shares of Carnival Corp. CCL, +0.90% CCL, -2.36% slumped 2.5% in premarket trading Tuesday, after the cruise ship operator said it will accelerate actions to become leaner, including an increased reduction in capacity. The company said it was accelerating the exit of 18 ships from its fleet, representing a reduction in capacity of 12%; in July, the company said it expected to dispose of 13 ships, representing a reduction in capacity of 9%. Carnival said it expects only two of the four ships originally scheduled to be delivered in 2020 will be delivered by the end of the year, and only expects five of nine ships originally scheduled for delivery in fiscal 2020 and 2021 are expected to be delivered by the end of 2021. 

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From CCL 8-K 9/15/20

Optimizing the Future Fleet
 
The company expects future capacity to be moderated by the phased re-entry of its ships, the removal of capacity from its fleet and delays in new ship deliveries. Since the pause in guest operations, the company has accelerated the removal of ships in fiscal 2020 which were previously expected to be sold over the ensuing years. The company now expects to dispose of 18 ships, eight of which have already left the fleet. In total, the 18 ships represent approximately 12 percent of pre-pause capacity and only three percent of operating income in 2019. The sale of less efficient ships will result in future operating expense efficiencies of approximately two percent per available lower berth day ("ALBD") and a reduction in fuel consumption of approximately one percent per ALBD. The company expects only two of the four ships originally scheduled for delivery in 2020, following the start of the pause, to be delivered prior to the end of fiscal 2020. The company currently expects only five of the nine ships originally scheduled for delivery in fiscal 2020 and 2021 to be delivered prior to the end of fiscal year 2021. The company currently expects 9 cruise ships and 2 smaller expedition ships of the 13 ships originally scheduled for delivery prior to the end of fiscal year 2022 to be delivered by then.
 
Based on the actions taken to date and the scheduled newbuild deliveries through 2022, the company's fleet will be more efficient with a roughly 13 percent larger average berth size and an average age of 12 years in 2022 versus 13 years, in each case as compared to 2019.

 

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I would have been surprised if Carnival Corp did not announce a further reduction to their current fleet.

 

It is  their Q4 with 75 days left to impact their year end financials and 2021 f'cast.

 

I would expect the older, less profitable, ships to be candidates.  Especially  those that require significant capital improvements/investment.    I would think that each cruise line in the Carnival group has a priority list of ships for potential downsizing action.  This is not different from any other large corporation that is faced with financial challenges in an industry downturn.

Edited by iancal

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I just saw this as well.  Have to see if HAL takes an additional hit.  Are the Volendam and Zaandam next?

Edited by KirkNC

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If "The sale of less efficient ships ... " included Amsterdam and Rotterdam, it is only logical that R-class sisters Zaandam and Volendam would "qualify" as well. 

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If the sold Zaandam and Volendam - which are now doing the more "exotic" itineraries including world cruises - what ship(s) would they replace them with?  We're booked on the Volendam in October next year for the 45 day South Pacific cruise.

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The foresight outshines the competition, IMO.  A new supply and demand are coming, the sooner they prepare for it the better.  A cruise line does not want to get caught in 2023, sailing 2/3 full ships, trying to figure out which ships to drop during active sailings.

 

Still, I hope the Zaandam and Volendam are spared as well.  

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Hopefully the additional disposals are coming from other Carnival brands.They’ve already cut the HAL fleet by roughly 30%. Between the four that sold and the Princendam, all but two of the ships able to do the more ‘exotic’ itineraries are gone.

To sell the Zaandam and the Volendam would mean scrapping the itineraries that makes HAL stand out, to a large extent. So we are either completely safe, or completely hooped.

 

Edited by Horizon chaser 1957

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6 minutes ago, Stateroom_Sailor said:

The foresight outshines the competition, IMO.  A new supply and demand are coming, the sooner they prepare for it the better.  A cruise line does not want to get caught in 2023, sailing 2/3 full ships, trying to figure out which ships to drop during active sailings.

 

Still, I hope the Zaandam and Volendam are spared as well.  

I so agree.  Getting rid of those fuel inefficient vessels is a positive.  I hope they are getting some tax credits from their home countries. Additionally I am sure they are trying to project the next 10 years - who will be sailing, what itineraries, what price point, etc...   There is a current trend to smaller ships and I don't know if they want to give up that mid-tier sized ship.  It is a unique spot in the market for the many who desire the smaller ship environment without the hefty premium price tag.

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Just an FYI - Carnival still has some old tonnage in its fleet it hasn't disposed of and Princess has not been touched to date.  I would expect those lines will be pared down before additional HAL tonnage is reduced.

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I suspect this has more to do with financial necessity than it does with foresight.  

Edited by iancal

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2 minutes ago, TiogaCruiser said:

Bye, bye HAL.

Yes, small fleet with large ships..

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39 minutes ago, Sir PMP said:

Yes, small fleet with large ships..

 

I doubt they're all going away, not without efficient replacements.  Too big of a niche to hand it all to the luxury market.  And if HAL did gave up on exotic itineraries, a vacuum will always be filled.

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I meant to add this to this thread, so pardon my repetition:

 

 

For those who, like me, need a score card this is a quick list (prone to error) that I compiled of Carnival Corporation ships built in the 90s.  Taking at face value their statement to improve efficiency and maintenance costs I assume the older ships are the criteria.

One point, points guy says Fascination was sold, others say not.  I assume he is right.

 

AidaCara,  Carnival: Triumph, Elation, Paradis, Destiny, Sensation, Ecstasy, HAL:  Volendam, Princess: Grand Princess, Sun Princes, Sea Princess and Pacific Princess. (information from Wikipedia)

 

According to the Points Guy already sold are Maasdam, Veendam, Rotterdam, Amsterdam, Fantasy, Imagination, Inspiration, Fascination, Oceana and Victoria

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Wow. You have to wonder if a new cruise line can start up from all these cast off vessels. We are scheduled on the Ryndam/Rotterdam Fall 2021. I wonder if it will be delayed.  

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1 hour ago, TiogaCruiser said:

Bye, bye HAL.

Oh please.  Don't cancel another one of my booked cruises (Volendam - Nov 2021 to Hawaii).  

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14 minutes ago, JeffElizabeth said:

Wow. You have to wonder if a new cruise line can start up from all these cast off vessels. We are scheduled on the Ryndam/Rotterdam Fall 2021. I wonder if it will be delayed.  

I hope not.

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39 minutes ago, Mary229 said:

 

AidaCara,  Carnival: Triumph, Elation, Paradis, Destiny, Sensation, Ecstasy, HAL:  Volendam, Princess: Grand Princess, Sun Princes, Sea Princess and Pacific Princess. (information from Wikipedia)

 

 

Destiny?  With the refurbishment and renaming to Sunshine, I'd think that one is safe.  But who knows?

Edited by Aquahound

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