Industry Insider

 

Coastal cruise ships Cape May & Cape Cod Light sold

The U.S. Maritime Administration (MARAD) recently sold the former American Classic Voyages coastal cruise ships CAPE MAY LIGHT and CAPE COD LIGHT, which have been laid up since 2001. The CAPE MAY LIGHT, the first of 226-passenger ships, built at Atlantic Marine in Jacksonville, FL, began sailing itineraries along the U.S. East Coast in Spring 2001. In October that same year the company filed for bankruptcy and all ACV vessel's were laid up. The CAPE COD LIGHT, completed in 2002 never made a commercial voyage and was laid up in Florida with her sister. Three more ships in the class were planned but never built. The Clipper Group, a European shipping consortium, bought the pair for a reported price of US$20 million. The coastal ships will be operated under the American Flag for at least three years.

Costa North America Announces New Executive Leadership Roles

Maurice M. Zarmati, President and CEO of Costa Cruise Lines North America announced today that industry veteran Scott Knutson, CTC, has been named Vice President of Sales and that Ruben Perez has been promoted to Senior Vice President of Guest Services and Revenue Management for Costa’s North American headquarters. Most recently, Knutson was Regional Vice President of Sales for the Southeastern United States with Carnival Cruise Lines. Perez has been with Costa North America for 24 years, most recently as Vice President of Passenger Services. Both Knutson and Perez will report directly to Zarmati.

In Knutson’s new position heading up Sales for Costa’s North American region, he will oversee Field Sales, Group Sales, National Accounts, Strategic Partnerships, Corporate and Incentive Sales and Inside Sales. Over his successful 20 year career at Carnival, he has held positions as Regional Vice President of Sales for the Central United States region and as Director of Sales for the Northern California region. Knutson began his sales career with United Airlines and is a graduate of the Indiana University School of Business where he earned a Bachelor of Science degree in Marketing. He will soon relocate to South Florida from Sarasota, Florida with his wife and three children.

Perez has had an exceptional career with Costa, holding various positions within the company for the past 24 years. In his new role as Senior Vice President of Guest Services and Revenue Management, he will oversee Reservations, Air and Sea Operations, Group Operations, Guest Relations, Guest Services Support and Revenue Management. Prior to his role as Vice President of Passenger Services over the past two years, he held executive level positions in Revenue Management. Perez holds a Bachelor of Science degree in Professional Administration from Barry University and resides in Miramar with his wife and two children.

“I know first hand from working with Scott what a talented sales professional he is and how exceptional his leadership skills are. His arrival at Costa will further strengthen the relationships we have with our valuable travel agent partners, many of whom have enjoyed working closely with Scott over the years,” said Zarmati. “I’m equally pleased to announce Ruben’s new promotion, which is truly well-deserved. His proven track record for the past 24 years with Costa speaks volumes and I know he will continue to excel in his new role.”

Competing for Crew Power

With all the new and bigger cruise ships entering service over the next few years, the industry's biggest challenge may be the human element and finding enough qualified seafarers. While recruitment needs for the cruise industry are estimated to be in the range of 50,000 over the next five years, according to Cruise Industry News, the worldwide shipping fleet will need 60,000 new seafarers every year for the next three years, according to Det Norske Veritas (DNV).

Two-thirds of the people joining the worldwide fleet of ships have never been to sea before, said Espen Cramer, head of DNV Maritime Solutions and a member of the DNV Maritime Management Group.

"We have many new ships and we have many new people at sea, which is cause for some concern," Cramer said. "At the same time, many of the most experienced European seafarers are going to other jobs, for instance, in the offshore oil and gas industry, as well as the mega yacht industry which tend to offer better terms." According to Cramer, cruise ships require more work for less pay.

The pay issue is one that has been discussed for a while and the industry does need to address this aspect.  Additionally the time it takes for an office to work his way into a senior position is also very much dependent on sea time both in miles covered and in time at sea, there is no way to fast track this item, officers must have a lot of sea time - experience.

To some extent the cruise industry also has an image issue: In order to make it to the top, that is to be appointed captain, officers must not only be qualified, they must also portray the image of confidence and self-assuredness that cruise passengers expect of a captain, said Cramer. If someone does not fit that image, it may not matter how qualified he or she is, Cramer added.

CLIA Survey Finds 34 Million Americans Planning to Cruise in Next Three Years

The latest Cruise Lines International Association’s (CLIA) 2008 Cruise Market Profile Study finds that the number of Americans ready to cruise is growing-almost 34 million plan on cruising in the next three years-and that these cruisers are getting younger and see the value that a cruise vacation offers.

They understand the value and convenience of home porting-they can drive to their port of embarkation instead of flying and put what they might have spent on airfare into an even nicer cruise. And, cruisers recognize the value that travel agents provide. In fact, the more cruisers spend, the more they rely on travel agents.

About 75 percent of all cruises are booked by travel agents, but that increases to nearly 100 percent as you move into premium cruises. Increasingly, cruisers are taking the kids. In 2002, 13 percent of cruisers indicated they traveled with children under the age of 18; in 2007 that was up to 25 percent.

The biannual survey of American consumers, first conducted in 1986, identifies American consumer demographics, attitudes and intentions as they relate to leisure travel and specifically to cruising.

Research was conducted online in March and April 2008 by TNS, a leading market research firm. A total of 2,426 U.S. residents were interviewed. This year’s findings reinforce previous studies in painting a picture of a healthy, in-demand cruise industry fueled by vacationers with broader travel interests than non-cruisers and whose satisfaction with cruising is based on perceived and realized value.

In 2007, 9.57 million Americans took a cruise vacation representing 76 percent of the total 12.56 million guests carried on CLIA member cruise lines. Based on this year’s study, 33.7 million Americans stated intent to cruise within the next three years.

The study also shows that travel agents, who sell the great majority of cruises, remain a vital part of the industry and are perceived by travelers as providing the best service in vacation and cruise planning.

RCCL’s ship repair specialist is leaving

Royal Caribbean’s Peter Fetten -- who has overseen major ship revitalization projects and the on-going addition of auxiliary diesel engines to eight gas turbine ships -- is leaving the company.
Peter Fetten, vp technical development and revitalization, is returning to Germany for an opportunity to expand the family logistics business near Deusseldorf. He leaves at the end of June.

‘I call him the “Weltmeister” [world champion] in ship repair,’ said Harri Kulovaara, evp maritime. ‘He is probably the best ship repair person I know in the world.’

Fetten has been with Royal Caribbean in Miami for nearly nine years, leading such efforts as the refurbishments of the Sovereign-class ships and Celebrity Century, and the re-engining of the Radiance-class and Millennium-class vessels.

Kulovaara told Seatrade Insider Fetten has built ‘a very strong team which can carry on.’

Assuming many of his duties will be Kevin Douglas, a seasoned naval architect and project manager who currently serves as associate vp newbuilding and fleet design. Douglas has an 18-year background in shipbuilding including the eight R-class ships for Renaissance.

Fetten leaves ‘a culture of “there’s nothing we can’t do,” a very can-do attitude,’ Douglas said. ‘We get to try new techniques. We get to do new things, and that’s become the standard.’

As earlier reported, Royal Caribbean has also tapped senior Swedish shipping executive Christer Schoug for a new position, vp newbuildings. He joins in mid-summer.

Schoug will support Kulovaara and work with the various on-site newbuild teams. Royal Caribbean has seven ships on order, five Celebrity Solstice newbuilds at Meyer Werft and two Oasis-class newbuilds at Aker Yards in Turku.