Cruise Ships Entering Hot Lay-ups That Cost Millions Per Month Per Ship

By
Mfame Team
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  • Cruise operators are entering hot lay-up scenarios with their cruise ships.
  • This ensures that the crew and a ship could return to service almost immediately.
  • Carnival has filed $2 to $3 million per month per vessel for a hot lay-up.
  • Cost per prolonged ship lay-up is appropriate $1 million per month.
  • During this period, the ship operates with a reduced crew and limited technical operations.

According to an article published in the Cruise Industry News, cruise operators are quickly entering hot lay-up scenarios with their cruise ships, meaning a mostly full set of crew and a ship that could return to service almost immediately.

Cruise industry takes a severe hit

A once unforeseen scenario is now a reality and Carnival Corporation, in a recent SEC filing, has detailed the costs associated with a hot lay-up – referred to as a warm lay up in Carnival’s filing – at $2 to $3 million per month per vessel.

Carnival said the cost per prolonged ship lay-up is appropriate $1 million per month, which it said it anticipates doing for the majority of its fleet.

Prolonged lay-up can affect revenue and crew

A prolonged lay up will generally see reduced crewing and limited technical operations, also meaning the ship could take weeks to be ready to return to service.

“During the pause in our global fleet cruise operations, certain of our ships will be in warm ship lay-up where the ship will be manned by a full crew and certain of our ships will be in a prolonged ship lay-up where the ship will be manned by a limited crew,“ Carnival said.

Cruise industry estimates ship lay-ups

“We will decide whether each vessel in our global fleet will be in a warm ship lay-up or a prolonged ship lay-up depending on the circumstances, including the length of the pause, which we expect to be extended and may be prolonged,“ the company said.

“We currently estimate the substantial majority of our fleet will be in prolonged ship layup,“ Carnival said, in the filing.

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Source: CruiseIndustryNews