Seatrade Cruise Global 2024 kicked off with leaders of the industry highlighting the challenges and achievements of cruise’s journey to net zero – with milestone figures revealed
CLIA president and chief executive Kelly Craighead unveiled positive figures highlighting the growing strength of the cruise industry. Singling out an important milestone, she revealed total passenger numbers hit 31.7M in 2023 – surpassing 2019 numbers by almost 2M. And CLIA has forecast passenger numbers will hit 31.4M in 2024, jumping to 36.4M in 2025.
There is also a healthy orderbook of what Ms Craighead refers to as “spectacular” ships. CLIA member cruise lines are projected to exceed 300 oceangoing cruise vessels this year for the first time. 14 ships were delivered last year, with eight due to be delivered this year, including two expedition ships. There are an overall 56 new cruise ships on the global orderbook that are due to be delivered by 2028, worth an investment of more than US$38Bn.
Some 34% of these ships are classed as small, with fewer than 1,000 lower berths, 39% are mid range (1,000-3,000 berths) and 28% have 3,000 or more berths.
Ms Craighead said, “Every new ship takes us closer to our sustainability goals. Each one is approximately 20% more efficient than that which it supersedes.”
She told the audience, “Sustainability is one of the greatest challenges we face together. Cruise lines are transforming the modern fleet… there is an increasing uptake of new environmental technology by members, new pilot trials and propulsion systems and all this ultimately takes us to our goal of 2050 net-zero emissions.”
Indeed, she said there are 32 pilot projects or collaborations with sustainable fuel producers and engine companies. “Each of these are working to protect the fleet of the future, using green methanol, bio and synthetic LNG, battery, solar polar, wind and hydrogen fuel cells. They are paving the way for significant emissions reduction in port.”
In terms of shorepower, 46% of cruise ships are already equipped for onshore power, with this figure expected to rise to 72% by 2028. But Ms Craighead said, “Equipping ships for shore power only provides value if there are facilities on land. More ports are investing, including Miami port, which opens its first onshore power sometime this Spring. This is tremendous news.”
But she warns only 34, or 2% of ports worldwide offer this capacity. “Significant investment in land is critical to catch up with the progress made by cruise lines,” warned Ms Craighead.
Following Ms Craighead’s address at the Miami convention, came the State of the Global Cruise Industry Keynote, whose panel included Ms Craighead, as well as Norwegian Cruise Line Holdings president and CEO Harry Sommer, Royal Caribbean Group president and chief executive Jason Liberty, Carnival Corp president, chief executive and chief climate officer Josh Weinstein and cruise division of MSC Group executive chairman Pierfrancesco Vago.
The keynote started with the cruise industry’s journey to net zero. CLIA chairman and Royal Caribbean Group’s Mr Liberty said, “There is lots more opportunity for us to continue to evolve the technology that supports our ships and the infrastructure on land. Many parties here today help us reduce the amount of fuel we burn and emissions but this only solves so much; we need to make sure we have fuel sources that allow us to get to net zero. We need fuel sources where we know where they will be and what they are, and what is available to us and scalable and affordable. This is a journey and [involved] working with many different parties, governments and suppliers.”
Asked what he would like to see done more, especially in the US, he said, “Lots of good things are happening in the US… the grid is being cleaned up, getting access to green shore power but the key thing… in the US is to have those fuel sources, whether green methanol or eLNG, available to us at the ports of call we access.”
Elsewhere, CLIA Europe chairman and MSC’s Mr Vago spoke about the situation in Europe. “What needs to be done now is to meet the objectives of 2030 in Europe. The Fit for 55 package in Brussels is not a maritime strategy per se but a tax on emissions. The problem is they are not doing it in line with the rest of the world, they are coming out with their own agenda and we don’t have a global approach. This year, we have to declare up to 40% emissions in European waters. This is a wider problem in the maritime, not just in cruise but logistics, supply and cargo become uncompetitive if transhipment is in Europe versus northern Africa. This needs to be looked upon and brought to IMO level as IMO is looking to understand how to harmonise the approach in the global sense.”
He singled out how the cruise industry could potentially follow in the footsteps of the airline industry as he noted airlines joined forces to speak to Brussels and explained they would find a solution but put it in the hands of the suppliers (refineries) to find the right fuel. “This teaches us if we work together and work in this direction, we can understand what the fuel of the future is.”
Mr Sommer spoke about how having too many different regulations was disadvantageous when it came to reaching net zero. “It occurred to me how many different regulations there are and I counted 10 different and somewhat incompatible regulations that govern the cruise industry… if we were to focus on the goal as opposed to mandating specific steps, we would be able to reach the goal in a much easier, quicker process.”
He added, “One of the few things we are aligned on in the industry is being fully committed [to net zero] but to take a slightly longer-term approach with governments, as opposed to mandating individual things that are incompatible, instead partnering with us to find ways to truly accomplish the goal of decarbonisation.”
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