Coronavirus: is this the end of the line for cruise ships?

Coronavirus: is this the end of the line for cruise ships?
Alice Hancock 7 June 2020

It has survived norovirus, Sars and Mers, as well as regular outbreaks of gastroenteritis and legionnaires disease. But coronavirus has dealt the cruise ship industry what looks like a crippling blow.

The 338 ships that make up the industry’s fleet are docked. Carnival, the world’s largest cruise company, is haemorrhaging $1bn a month to maintain its fleet. Governments have issued “no sail” edicts and the majority of the 32m passengers that the Cruise Lines International Association projected would sail this year are stuck at home.

The halt on operations is due to last until at least August with ghostly ships marooned in harbours in what is known as “warm lay-up”, where systems are kept running to make sure that none seize up.

The industry — which says bookings for 2021 are almost at the same level as they were this time last year — is now looking to rebuild public trust with new health and sanitation measures. But Martin Luen, a banker specialising in travel at Baird, an investment bank, warns that it will be a slow return to growth: “Sectors at the scene of the car crash are rarely the first ones to recover.”

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