Cruise ship newbuild orders almost at recovery level post-pandemic

The cruise industry’s rapid recovery from the disruption caused by the COVID-19 pandemic has given the world’s major cruise line’s the confidence to begin reinvesting in their fleets, with newbuild contracts now at highest level since the pandemic.

Cruise ship orders have almost reached recovery level, nearing pre-pandemic highs, as the big players book vessels deeper into the future, according to analysis by Trade Winds.

Seventeen cruise ships have been ordered in 2024, more than any other year since 2019, according to the research arm of shipbroking giant Clarksons, with cruise lines booking newbuilds up to 12 years into the future.

With widespead expectations in the industry that Royal Caribbean is planning a new class of ships, its likely that the number of newbuilds on order could grow.

Italy’s Fincantieri has seen a more than threefold growth in orders in the first half of the year, driven primarily by the cruise sector.

“The commercial strategy in [the] cruise sector remains highly successful, with the acquisition of major orders for medium and large-capacity cruise ships, and with important commercial agreements, which bring the Group’s total backlog visibility to 2036, ensuring full saturation of shipyards,” the company said in its first-half earnings report.

Carnival Corp earlier this year signed an order with Fincantieri for three giant 230,000-gross ton cruise ships powered by LNG, with delivery dates that stretch into 2033, while Norwegian Cruise Line Holdings has eight ships on order through 2036.

The cruise line, the third-largest in the world after Carnival and Royal Caribbean, ordered six ships for its Regent Seven Seas and Oceania brands, with four 200,000-gross ton mega ships being considered for its flagship Norwegian Cruise Line brand.

Clarksons Research lists a total cruise orderbook of 69 ships, with newbuilding deliveries further back than before the 2020 pandemic.

The newbuild sector’s recovery is surprising given the amount of debt that cruise lines took on during the pandemic, and Carnival Corporation’s scaled-back newbuilding schedule as a result of its efforts to manage that debt.

Analysts have noted that a range of factors are driving cruise lines to continue reinvesting in their fleets, including the ongoing trend toward larger and more amenity-heavy cruise ships such as the new Icon of the Seas from Royal Caribbean, and the new 230,000-gross ton mega ship orders from Carnival, as well environmental factors and fleet dynamics.

Royal Caribbean’s smaller ships are approaching retirement age and will need to be replaced by more efficient and more environmentally friendly vessels, forcing the cruise line to think long-term about its newbuild orders.