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 ’s ‘ship graveyard’ ------05

Mormugao Port Trust moots Ro-Ro, Ro-Pax at new international ------07 cruise terminal in North

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 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”. Mr Arggawal said they tried to find new work for the Marco Polo as a cruise ship or a hotel without success, before selling to “Indian interests”. It is a similar story for the Magellan, which was meant to be used as a floating hotel in Liverpool for the 2021 Grand National. It was bought at the auction by a Greek ship owner. Brokers say it was sold on for scrap after no new buyer was found. The cruise ship industry do send old ships to be scrapped safely at EU-approved yards, but when sold at auction, which often happens when a company goes into administration, this decision is taken out of the previous owner’s hands.

Asbestos bomb There are serious concerns about the environmental impact and working conditions in the ship-breaking industry across south Asia. Each year around 800 ships come to the end of their lives and need to be broken apart and recycled. Although this work can be carried out in the UK and other EU-approved ship-breaking yards, around 70% of the world’s ships end up on the beaches of India, Pakistan and Bangladesh as these yards offer much higher prices for scrap steel. The organisation Ship-breaking Platform has documented the deaths of more than 400 workers on these beaches since 2009. It has recorded fatal accidents in the yards from workers falling from height and being killed in gas explosions, as well as longer-term sickness from exposure to toxic materials such as asbestos.

Ship-breaking Platform’s director, Ingvild Jenssen, said despite laws in place making it illegal for developed countries like the UK to send hazardous waste such as old ships to developing countries, they continue to

J. M. BAXI & COMPANY CRUISE REPORT - MARCH 2021 | PAGE 5 arrive “There is a lot of value in these vessels because they contain large amounts of steel,” she said. “But they also contain large amounts of hazardous materials: asbestos; heavy metals; lead, and many materials you need to take large precautions when you’re dealing with them.” Ship recycling consultant Merijn Hougee from Sea2Cradle says asbestos is not treated as a hazardous material in India. “If you have a vessel built in the 60s, it is likely there are larger amounts of asbestos on board. There’s a ban on asbestos in Europe, but in India, it’s freely being traded and sold and used as second-hand building materials.” A ship-breaking worker in India who spoke to the BBC said they “pump waste, like oil and petrol, into the sea when clearing out a ship, or we use it to burn other materials on the shore” He said he has been badly burned on two occasions and did not receive sick pay while recovering. Once he had to be driven an hour away to hospital as the one near the yards did not have the facilities to deal with serious injuries. UK shadow environment secretary Luke Pollard believes tighter, global regulation is needed to ensure that British-owned ships end up being recycled by approved ship-breaking yards. “I don’t think the public want to see ships that were owned by British companies polluting beaches all around the world. I think they want to see them properly disposed of, properly recycled.” The UK government said: “The illegal export of waste is a significant threat to the global environment, and those convicted could face two years in prison or an unlimited fine.”

Source: BBC News

J. M. BAXI & COMPANY CRUISE REPORT - MARCH 2021 | PAGE 6 MORMUGAO PORT TRUST MOOTS RO-RO, RO-PAX AT NEW INTERNATIONAL CRUISE TERMINAL IN NORTH GOA

The plan also includes a commercial hub, which will come up within the terminal building, so that foreign tourists who do not wish to travel can still get a taste of Goa’s culture, cuisine and handicrafts. Mormugao Port Trust (MPT) unveiled an ambitious plan to develop a domestic and international cruise terminal, which will include Ro-Ro and Ro-Pax services and will enable cruise passengers to directly travel by smaller ferries and launches to North Goa, reports Newton Sequeira. The plan also includes a commercial hub, which will come up within the terminal building, so that foreign tourists who do not wish to travel can still get a taste of Goa’s culture, cuisine and handicrafts, MPT chairman E Ramesh Kumar said. “The rate at which cruise traffic is increasing shows that there is tremendous potential. The international and domestic cruise terminal is going to be developed on the theme of green cruise terminal and will ensure that tourists spend less time at the port,” Kumar said. He was speaking at the Maritime India Summit on a session on investment opportunities in Goa. At present, MPT has a 450m-long cruise berth that can comfortably accommodate cruise vessels. A second berth, which is presently leased to the and the , is used as and when two cruise ships make a simultaneous port call. The berth which was allotted to is now being considered for cruise operations after it is refurbished, sources said. Kumar said that as part of the initiatives to promote cruise tourism, a Ro-Ro facility for vehicles, a Ro-Pax facility, a fast ferry service and a ropeway will be built. While inaugurating the Maritime India Summit 2021, Prime Minister Narendra Modi said that steps are being taken to introduce urban water transport systems in key states such as Gujarat, Goa, Kerala and in Mumbai. “The cruise terminal will come up in Vasco, but most tourists want to visit North Goa and they can take one of these options to reach North Goa. The ferry service that we are planning will be on three or four identified routes such as Dona Paula to Captain of Ports jetty and towards and from South Goa to any of the beaches in North Goa,” Kumar said. Each ferry route will have a distinct colour code and hop-on-hop-off buses with the corresponding colour code are also being considered by MPT to receive cruise passengers. “Most cruise tourists are from European countries and are elderly and though a few opt to go see North Goa, there are many who would actually want to spend their time at the terminal itself. For this purpose we are planning a commercial hub spread over 4,000sqm of area. The commercial hub will be primarily designed to depict the old Portuguese architecture and will showcase handicraft, handlooms, cuisine of various states and cultural forms such music,” Kumar said.

Source:Times of India

J. M. BAXI & COMPANY CRUISE REPORT - MARCH 2021 | PAGE 7 GOA PORT TO SET UP SPECIAL FERRY SERVICE FOR INBOUND CRUISE TOURISTS

“With a dedicated colour-coded ferry service, we are also contemplating to receive passengers on the other side with hop-on-hop-off buses, with the same colour codes with refreshments served en route, multilingual audio commentary,” he also said.

Goa’s only major port, the Mormugao Port Trust, operated by the Centre is planning to develop a ferry circuit to cater to the international cruise ship tourists visiting the state. Speaking virtually at the Maritime India Summit 2021, Chairman of the Trust E. Ramesh Kumar said that the ferry service would connect several beach destinations in the coastal states, both in North Goa and South Goa districts. “The ferry service that we are planning is designated to be on three or four identified routes whether from South of Goa to Dona Paula and onwards, South of Goa to Captain of Ports jetty at and onwards to Old Goa or from South of Goa to any of the beach destinations like Candolim, Calangute, Baga and so on,” Kumar said. “With a dedicated colour-coded ferry service, we are also contemplating to receive passengers on the other side with hop-on-hop-off buses, with the same colour codes with refreshments served en route, multilingual audio commentary,” he also said. The top official also said that the Port Trust was also in the process of setting a commercial hub spread over 4,000 sq mt area near the port terminal itself for visiting cruiseship holidayers. “There is a unique feature of this commercial hub which is going to be primarily designed to depict the old Goan culture imbued with modern facilities. It also embodies in it the rich culture of various states and exhibiting three essential ingredients whether it is handicraft, handloom or the cuisine of various states or the cultural forms including music and dance,” Kumar said.

Source” Daily Poineer

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J. M. BAXI & COMPANY CRUISE REPORT - MARCH 2021 | PAGE 9