MSC EXPRESSES INTEREST IN GLOBAL DREAM

[morpheusofthesea]

"Two other companies have also expressed interest in the Global Dream, but neither intends to complete construction at the German shipyard, the insolvency administrator said. There is speculation that MSC Cruises is one of the interested companies, and Star Cruises has also expressed interest. However, Star Cruises, a subsidiary of Genting Hong Kong, offered a lower price, seeking to take advantage of bankruptcy to regain the cruise line."

https://inf.news/en/world/d4e4c2fc8bb22fafb77ef6dc044fd61e.html

Edited August 28, 2022 by morpheusofthesea
punctuation

[morpheusofthesea]

"Despite saying that several companies have shown initial interest in the Global Dream, Morgen cautions that the ship is highly specialized to the Asian market. He points to the 9,000-passenger capacity and large areas devoted to casinos. Dream Cruises during the construction highlighted that the passenger accommodations were designed for families with 2,500 cabins, many of which were 15 percent larger than cabins found on most other cruise lines. A portion of the cabins were being outfitted with two bathrooms and space for a large sofa that converted to a king-size bed for an additional two guests. Dream Cruises had also reported that the ship would have a “first-ever theme park concept at sea,” complete with the “world’s longest roller coaster at sea,” and other features including a bounce activity park, bungee trampoline, and surf simulator."

 

[Two Wheels Only]

"The ship is custom-built for Dream Cruises designed specifically for the Chinese cruise market. Therefore interested parties will have to deploy the vessel in Asia, or spend more cash in order to adapt the vessel to the western cruise market." - an older article.

 

The best option is to buy the ship on the cheap and spend some on completion and renovations. NCL spent over $50M to renovate Joy after the ship was completed. Being larger and incomplete, Global would be even more expensive.

Edited August 28, 2022 by Two Wheels Only

[sidari]

A report on FB claims the ship has been sold to the Aliaga shipyard for scrapping.

[Two Wheels Only]

20 minutes ago, sidari said:

A report on FB claims the ship has been sold to the Aliaga shipyard for scrapping.

 

I thought that the 2nd ship was sold for scrap. The first one is almost complete.

[SirWolf]

17 minutes ago, sidari said:

A report on FB claims the ship has been sold to the Aliaga shipyard for scrapping.

The sister ship Global Dream II was getting ready for its maiden voyage but the machinery and fittings will be sold off as they are and the hull will most likely be sold as scrap.

 

The construction of Global Dream is 80% complete and the German insolvency administrator (Konkursverwalter) hope the Global Dream will find a new owner.

[morpheusofthesea]

Just to note. This article is the latest. "2022-08-29 05:20 HKT" It is not even the 29th until tomorrow here in the USA.

Edited August 28, 2022 by morpheusofthesea

[sealynx]

Very interesting indeed. I believe if there would be one company that can afford the ship, it would be MSC. Their are making big money from their container business (a little too big if you ask me). MSC is a family-oriented cruise line, so maybe the Global Dream would fit. However, apart from school vacations, most families will be 2 person. That makes a lot of empty bunk beds. I do believe that converting this ship to the MSC-product would be way cheaper than what NCL spend on Joy. For MSC is would mostly mean demolition of facilities they don't offer, and replacing them with sun beds, bar stools and sofas.

[Hlitner]

We have always thought the Global Dream was somewhat of an albatross and slated for failure or to end up at some permanent anchorage or dock is Asia (possibly off of Macao).  We cannot imagine that that the Aponte family/MSC would have any interest.  Virgin, on the other hand, is ripe to be sold since this is a truly awful time for a new upstart with no real cruise pedigree.  

 

But we will go a little off topic and say "The Sky is Falling, The Sky is Falling!"  I say this in an economic sense.  Much of the world is too young to remember the inflationary period in the 70s when 9% mortgage rates were considered a bargain!  But I see the world (and especially Europe) heading for a major recession which means lots of belt tightening and tough days for the cruise industry.  Electric prices in Europe are soaring (because of very stupid/bad planning by their politicians) and is likely to worsen over the next few years.  Some Europeans are already used to paying over 30 cents per kilowatt hour, but with Russia holding the energy purse strings for Europe we now see signs of electicity prices increasing 200-300%.  Just consider folks having to pay $1 per kilowatt hour.  As a comparison, where we live it generally costs about 12 cents per kilowatt hour (a year ago I was paying 6.6 cents per kilowatt hour).  Electricity drives just about everything in Europe from their train/public transit systems to heating systems in many commercial buildings and homes.   When folks see their utility bills double or even triple within months, something has to give and that is discretionary spending.

 

Meanwhile, MSC is continuing its ambitious expansion program with about 2 new builds per year plus a new luxury cruise line (Explora Journeys) with a commitment to build 4 ships with 2 more optioned.  They certainly have the financial ability to gobble up Virgin, but I wonder if this would fit into their plans or they might even consider integrating that ship into their new Explora Journey's brand.

 

Hank

[Sixtytwo]

Hank, is Virgin already trying to get out of the cruise business or is much of the chat less than factual? Bur, come to think of it, I have not seen very much ad space given to Virgin lately. 🤷‍♂️

[Hlitner]

9 minutes ago, Sixtytwo said:

Hank, is Virgin already trying to get out of the cruise business or is much of the chat less than factual? Bur, come to think of it, I have not seen very much ad space given to Virgin lately. 🤷‍♂️

Have no clue other than what has been said in some other blogs.  We note that it is a joint venture between Virgin Group and Bain (a large Venture Capital company).  Bain is all about making money and if they do not see an opportunity to make a nice profit with Virgin Cruises, it would not be surprising to see them sell it off or jointly venture with an existing company with lots of cruise experience (i.e. MSC).

We have posted (elsewhere) that the major cruise lines (with the exception of MSC) are all in financial trouble because of the huge additional debt they incurred during COVID, the longer than expected recovery, and now inflation which impacts everything important to the cruise industry including fuel, food, and crew.

 

Hank

[Sixtytwo]

I can understand the financial issues being faced by cruise companies. I am reminded every time I check my NCL stock! Thanks for the info.

[Nunagoras]

Well: Actually the Global Dream is at the size or slightly larger than the MSC World ship class. That said the unique way to insert it would to be as a mainline MSC ship perhaps with somewhat a World class look and feel on the renovations... But technically they'd stick with a once in her class ship (surely it is not the unique one. The Magnifica while having the Musica class look and feel is technically a once in class as well). The main shipyard went also bust as we know, so even the main design prototype is not money worth for nobody else to say the least.

 

One more "A380" of the seas would be a disaster for the whole market. Simply no place for it really. And the firm order book for those on the next few years is huge. Some one or 2 more RCI Oasis, some 4 RCI Icon (larger than Oasis!), at least 2 MSC World class, some Carnival Mardi Grass class... And go on!... Surely MSC can see this as an investment on its future... Especially in a time when the competitors are all of them weak, despite the potential huge EU recession...

 

Purchasing or partnering with Virgin? Who knows!... MSC has nothing on the premium market to talk about, and they may be interested, but that is for another day!... Virgin has its growing pains... But the reviews are coming positive. They may very well to succeed at their pricing tag, so...

 

Have a nice day!...

[dexddd]

Looks like NCL Joy which also has struggled as a ship.  Would like to sail Joy though.