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Cruise Ship Boneyard

fredymac

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Seems like cruise ship economics is another area where things are a bit different. I would have thought there should be some kind of downstream market for these things other than a breakers yard. Its not like they churn out hundreds of these things every year. This picture is from Turkey so I guess these were used mainly for the Euro cruise market.

Cruise Ship Graveyard.jpg
 

SSgtC

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This is the breakers in Aliaga, Turkey. They are one of the few places in the world that meet EU standards for safety and pollution control in regards to ship breaking (the other yards are in the EU and Brownsville, TX). These ships were owned by Carnival and Royal Caribbean. Following the COVID pandemic, cruising has been shut down. It costs millions of dollars a month to maintain these ships. So the decision was made to begin scraping the oldest ones. These ships are between 27 and 32 years old. They also have an almost complete lack of balcony cabins, which made them economically unviable. They did try to sell these ships to smaller lines, but almost all of those lines have collapsed and are no longer around to buy them. And considering that the cruise lines believe it will be years before the cruising market returns to pre-pandemic levels, it didn't make sense to retain these ships until they could be returned to service. And these are just the first ones heading to the breakers. Carnival has at least 3 more waiting for a plot to open up to be beached.
 

riggerrob

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In contrast, there is plenty of video on www.youtube.com of old ships running aground in Pakistani breaking yards. Nobody in Pakistan seems to have heard words like "pollution", "contamination," "toxic chemicals," "carcenogens," "asbestos," "hard hats," "steel toed boots," "respirators," and all the other health and safety measures that are routine in First World shipyards.
 
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SSgtC

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In contrast, there is plenty of video on www.youtube.com of old ships running aground in Pakistani breaking yards. Nobody in Pakistan seems to have heard words like "pollution", "contamination," "toxic chemicals," "carcenogens," "asbestos," "hard hats," "steel toed boots," "respirators," and all the other health and safety measures that are routine in First World shipyards.
," etc.
Applies to Alang in India as well. And to a lesser extent in Bangladesh.
 

EwenS

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Seems like cruise ship economics is another area where things are a bit different...... Its not like they churn out hundreds of these things every year.

[/QUOTE

They are now a bit like Las Vegas hotels, except it seems to be cheaper to scrap the old rather than renovate and reinvent, and build new with the latest attractions to keep the pax coming back.

Here is the list of new builds due over the coming few years - 28 already scheduled through to 2023.

That was on top of 18 new ships in 2019 and 14 in 2018, many bigger than their predecessors. Currently the biggest is over 228,000 tons and carries (or would do but for the pandemic) over 5500 pax.

 

Foo Fighter

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Or a very expensive white elephant. At a time when tourism is at an all time low and the larger passenger aircraft being struck off inventory, they show the worlds largest passenger liner? A bit like Airbus choosing this as the time to launch the A380. Ouch.
 

SSgtC

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Or a very expensive white elephant. At a time when tourism is at an all time low and the larger passenger aircraft being struck off inventory, they show the worlds largest passenger liner? A bit like Airbus choosing this as the time to launch the A380. Ouch.
Actually, the reverse is true for the cruise lines. The bigger ships are actually far more economical for them to operate. For example, the Oasis class from Royal Caribbean breaks even at under 50% occupancy while the older ships don't break even until 50-60% occupancy
 

chimeric oncogene

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Actually, the reverse is true for the cruise lines. The bigger ships are actually far more economical for them to operate. For example, the Oasis class from Royal Caribbean breaks even at under 50% occupancy while the older ships don't break even until 50-60% occupancy
Economies of scale at work? Similar costs for a dozen restaurants, bars, and other entertainment facilities (and the ship itself), but more rooms to use them?
 

SSgtC

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Actually, the reverse is true for the cruise lines. The bigger ships are actually far more economical for them to operate. For example, the Oasis class from Royal Caribbean breaks even at under 50% occupancy while the older ships don't break even until 50-60% occupancy
Economies of scale at work? Similar costs for a dozen restaurants, bars, and other entertainment facilities (and the ship itself), but more rooms to use them?
Pretty much, yeah. A lot of the fixed costs are damn near identical. But they're spread out over a lot more passengers on the bigger ships. And having more capacity means that at even reduced numbers due to covid protocols, the big ship will still turn a profit while the small ones will just barely break even
 

Hobbes

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Or a very expensive white elephant. At a time when tourism is at an all time low and the larger passenger aircraft being struck off inventory, they show the worlds largest passenger liner? A bit like Airbus choosing this as the time to launch the A380. Ouch.

eh, you do realize that article was from 2018?
 

Foo Fighter

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No, I missed that, pardon me.
 

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