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March 2021 Monthly Report

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March 2021 Monthly Report MONTHLY REPORT Cruise shipping MARCH 2021 J. M. BAXI & COMPANY CRUISE REPORT - MARCH 2021 | PAGE 1 TABLE OF CONTENTS KEY HIGHLIGHTS Cruise industry delays sailings, may send some seafarers back ------ 03 Cruise lines that require COVID vaccination for sailing ------ 04 UK cruise ships scrapped in India’s ‘ship graveyard’ ------ 05 Mormugao Port Trust moots Ro-Ro, Ro-Pax at new international ------ 07 cruise terminal in North Goa Goa Port to set up special ferry service for inbound cruise tourists ------ 08 J. M. BAXI & COMPANY CRUISE REPORT - MARCH 2021 | PAGE 2 CRUISE INDUSTRY DELAYS SAILINGS, MAY SEND SOME SEAFARERS BACK The crew members will now have to wait till June and July till they can find employment aboard cruise liners. Over 800 Indian seafarers who had undergone rigorous Covid-19 tests and had boarded Norwegian Cruise Line’s (NCL) Norwegian Escape in anticipation of the cruise industry resuming operations, face the prospect of being sent home with the international cruise market delaying resumption till mid-2021. Goa, which is home to 8,000-10,000 seafarers, had begun to see a ray of hope after the Norwegian Escape docked at Mormugao Port Trust (MPT) in late 2020 to pick up crew. The crew members will now have to wait till June and July till they can find employment aboard cruise liners. “The next three to four months look bleak for the cruise industry but as summer starts in Europe, by July-August, cruises will start,” said founder president of Goa Seamen’s Association of India (GSAI) Dixon Vaz. Cruise companies had planned to start sailing in January and February, but with the second wave of Covid-19 spreading across Europe, itineraries began to be cancelled. Some cruise companies such as Dream Cruises, Royal Caribbean International, TUI Cruises, MSC Cruises and Costa Cruises have either started sailing or have announced plans to resume sailing from this month. The cruise itineraries, however, are restricted to a specific region such as the home port of the vessel. Besides this, Goan seafarers have been flying out to various parts of the globe to man cruise vessels that required to maintain a skeletal crew — 20% of the regular staff — at all times. According to industry insiders, at least 100-200 crew members fly out of Goa via Dubai every month to replace crew aboard ships. The cruise industry, forced into a 10-month shutdown because of the pandemic, may appear in the doldrums, but stakeholders expect the sector to return to high seas by June with demand for cruise tourism still strong. Cruise Lines International Association (CLIA), the world’s largest cruise industry trade organisation, says shipping firms have invested $23.5 billion in new ships while Oceania Cruises saw its 2022 World Cruise, a six-month journey, get sold out within a day. Cruise industry veterans told TOI that several hundred Goan crew members have already moved to Europe and North America and have boarded cruise vessels, but a lack of clarity in guidelines by the Centre of Disease Control and Prevention (CDC) has kept the vessels anchored at port. “The cruise industry was gearing up to commence operations and was supposed to start from February, but the CDC guidelines that the cruise companies were waiting for haven’t come. That’s the reason they’ve made an announcement on board that the crew will be sent back to their home countries and then brought back once clear instructions come,” said managing director of Kamaxi Overseas Consultants, ParixitPai Fondekar. Kamaxi Overseas is the official recruiter for Oceania Cruises, Regent Seven Seas, NCL, Virgin Cruises and FTI Cruises, among others. “CDC norms require 10% of the ship’s capacity to be kept aside as a quarantine facility. At the same time, the CDC has permitted only 40-50% of the capacity to be booked, but this will be a loss for the cruise companies,” said Vaz. The fact that senior citizens form a major portion of the guests on cruise liners is a factor that works in favour of the industry. “At the rate at which governments are vaccinating their population, there is going to be an explosion in the tourism market. Pensioners are the largest market when it comes to high-end luxury cruises and they are also the priority group for every country when it comes to vaccination,” said Fondekar. Source: Times of India J. M. BAXI & COMPANY CRUISE REPORT - MARCH 2021 | PAGE 3 CRUISE LINES THAT REQUIRE COVID VACCINATION FOR SAILING The fate of many cruise lines still remains in limbo due to the ongoing pandemic. However, there are some cruise lines that have announced vaccine requirements for guest and crew members before resuming their service. As COVID-19 vaccination continues to be administered across the globe, it is likely to change the state of the cruise sector too. Here’s a list of cruise lines that already have COVID vaccination requirements for cruising. Hornblower Group’s overnight cruise lines They have announced mandatory COVID-19 vaccination for all overnight guests, which will likely go into effect for all sailings beginning July 1, 2021. As per the reports, the vaccination requirement also will apply to all, i.e., crew members, guests, non-shipboard employees across all vessels. Revealing more on the same, the cruise line stated that while they are confident in the measures that they have taken for itineraries operating from April through June, the latest requirement of COVID-19 vaccine for voyages from July 1 and thereafter will further ensure the well being of those who book overnight trips on our vessels. Crystal cruises Reportedly, Crystal Cruise passengers will be required to provide proof before boarding the cruise that they are fully vaccinated against COVID-19. Further, vaccinations must have taken place not more than 14 days before travelling. Apart from this, the cruise line has also put into place additional health and safety measures, including mandatory COVID-19 test results for both crew and guests, maintaining adequate social distance, temperature checks at the terminal, reduced capacity and much more. Saga cruises Latest reports have it that anyone going on a holiday in Saga cruise in 2021 will need to be fully vaccinated. To ensure that this protocol is abided, the firm said that it would delay announcing its packages until May, so that it will give enough time to its customers to get the two doses of vaccination. Saga primarily caters to passengers who are over 50-years-old, all the more reason to follow the vaccination criteria. Norwegian Cruise Line and Regent Seven Seas Cruises Norwegian Cruise Line and its Regent Seven Seas Cruises announced that all crew members will likely be vaccinated ahead of resuming the sailing. As per the reports, the cruise lines are still exploring all options regarding vaccinations for guests and crew and that it is their intention that all crew members be vaccinated before boarding our vessels to begin their duties, which will be subject to availability of the vaccine. In addition to this, Royal Caribbean plans to require all its crew members to be fully vaccinated before boarding the ships. As of now, there are no reports if passengers will need to be vaccinated to board the ship. However, as per the letter that the Royal Caribbean sent to its screw, it stated that the crew industry seems to be headed in that direction, and based on decisions from other cruise lines, including American Queen Steamboat and Victory Cruise Lines, Coronavirus vaccines might be required before boarding for passengers and crew members. Source: Times of India J. M. BAXI & COMPANY CRUISE REPORT - MARCH 2021 | PAGE 4 UK CRUISE SHIPS SCRAPPED IN INDIA’S ‘SHIP GRAVEYARD’ Two UK cruise ships have been scrapped on an Indian beach despite assurances they would continue to be operated. Ships at the end of their lives are considered hazardous waste and it is illegal to send them to developing countries from the UK. But months after being sold at auction to buyers outside the UK they were then sold on as scrap for double the price. As they were set to be used for further trading when they left UK waters, their arrival in India does not break UK law. An investigation by the BBC’s File on 4 programme found at least 13 other ships, mostly cargo ships, linked to the UK had arrived at the scrapping beaches of India, Pakistan and Bangladesh since the start of 2020. ‘The world’s largest ship graveyard’ The Marco Polo and the Magellan were sold at auction in November after their owners Cruise and Maritime Voyages went into administration. The Marco Polo was built in the 1960s and was one of the world’s last surviving ocean cruise liners. It was scheduled to take UK passengers to the Amazon and Norway this year, but its final voyage was to Alang in India. The ship-breaking yards of Alang dominate a stretch of muddy beach just up the coast from Mumbai in north-west India, referred to as the world’s largest ship graveyard. The ship was bought at auction for around £2m by offshore company Highseas Ltd. After the sale, it was released from UK waters on the condition it would be used for “further trading”. HighSeas Ltd said the cruise ship would be used as a floating hotel in Dubai. But two months after taking ownership of the Marco Polo, it was sold as scrap for around £4m. HighSeas Ltd director Rishi Arggawal said it was always their intention the Marco Polo would be sold to new owners “but regrettably, the intended buyers in Dubai refused to take delivery”.
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