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MSC bucks the trend with two new ship orders

Just as everyone was thinking the new ship building boom was over - I refer you to a report on Tripso by Anita Dunham-Potter - sharp-eyed cruise watchers spot news on Aker Yards website saying MSC Cruises has ordered two more Musica-class ships.

Sisters to MSC Poesia, the ships will weigh 89,600 tons and carry 2,550 passengers and be delivered in Febrary 2011 and February 2012.

MSC notwithstanding, Dunham-Potter is surely right in predicted the end of the new ship boom As she points out, all the cruiseships on the shipyards' books bar the MSC duo - she estimates 35 vessels at a cost of $22 billion - were ordered before the price of fuel shot up and world economies shot down.

But does it matter that the boom is over, for a couple of years at least? We all love new ship launches, but I can't help thinking it will be a good thing to give the new capacity coming into the market time to settle - there are still 35 ships to come, after all, and two of those are Royal Caribbean's giant 5,400-passenger vessels.

Simple supply-and-demand economics also tells me that a shortfall in capacity means prices will go up. And higher prices surely are better for cruiselines and agents. Given that, I wonder whether MSC wouldn't be better to watch and wait until it starts to command higher fares.

Do we need more cruise ships? Let me know what you think.

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Jane Archer
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