Shipyard boss appeals to cruiselines as new orders dry up

By Jane Archer |  Jul 01, 2009 09:48AM GMT

 

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The cruise industry's failure to order new ships beyond 2012 is causing concern for the shipyards.

Speaking at the float-out of P&O Cruises' Azura last week, Fincantieri Monfalcone director Paolo Capobianco hailed the Italian shipyard's relationship with Carnival Cruises, which has had 46 new ships built since 1990.

However, Capobianco said if no new orders are placed in the "short to medium term" he cannot guarantee "full workloads for all the sectors in the production line".

After almost a decade of boom years, when one ship is floated out, only for a keel to take its place in the dry dock within days, orders for new ships have dried up. As soon as Azura was out of dry dock, the yard was preparing to start work on Cunard's Queen Elizabeth.

Yachts of Seabourn's new ship Seabourn Odyssey was launched on June 24, just a few weeks after Costa named two ships in Genoa [see pics from both events in our cruise gallery - Ed].

Another five vessels are due this year, and next year there will be at least as many again leaving the yards.

While there is nothing to worry about immediately - the Passenger Shipping Association said there are 39 cruise ships on order between now and 2012 - the concern is that no orders have been placed beyond that date.

It's not really surprising. While the shipyards worry about the future, cruiselines are having a tough time, not just in trying to secure passengers and profits during the recession, but because the strength of the euro against the dollar has sent the cost of new ships sky-high.

Conversely, though, as long as cruiselines are as confident as they say about continued passenger growth in the cruise industry - and provided they have the secure financing needed to buy millions of pounds worth of new ship - this could be the best time to place an order. After all, there is no competition from other cruiselines and the shipyards are desperate for business.

Capobianco said: "It is more important than ever to focus on improving efficiency, so we are in a position to stimulate demand by offering ships at competitive prices."

One industry insider who declined to be named said: "We need the new tonnage if we are going to continue to grow the business. I think we will see new orders coming through soon for delivery after 2012."

Cruise ship launches 2009/10

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