Business
Cruise Lines Stocks Sink As CDC No to July Resumption
Cruise lines stocks sank as their petition to resume sailing by July fell to deaf ears. Instead, the US Centers for Disease Control and Prevention said that the moratorium preventing cruise lines from setting sail until November 1 remains in effect. This dashes the industry's hopes for a fast restart this year, sending cruise lines stocks falling into the sea.
RELATED: Cruise Stocks Get Pummeled Amid Government Warning, Coronavirus Worries
Cruise Lines Stocks Sinks
Cruise line stocks enjoyed a heyday the past few weeks in anticipation of a resumption in sailing operations. With the CDC’s announcement Tuesday, major lines reported losses as investors began avoiding stocks.
Carnival Corp reported a loss of 1.9% during yesterday's trading session and closed at $24.85. Meanwhile, Royal Caribbean Cruises Ltd fell by 2.8%. Norwegian Cruise Line Holdings Ltd. suffered the biggest industry loss yesterday, dropping 4.9%.
Resume Sailing by July
The Cruise Lines International Association, the main lobbying group for cruise companies including Carnival, issued a statement earlier Wednesday. They called on the CDC to revisit the November 1 moratorium and allow resumption of sailing activities by July.
However, the CDC responded via email that the framework for Conditional Sailing Order or CSO will continue to remain in effect through November. They effectively shut the door on an earlier return to the seas. “Returning to passenger cruising is a phased approach to mitigate the risk of spreading Covid-19. Details for the next phase of the CSO are currently under interagency review,” the agency wrote.
‘Not A Major Setback’
Some analysts chose to remain optimistic about the development. Brian Egger, gaming and lodging analyst, thinks the timetable is short as well. “The decision to keep the CSO in place until Nov. 1, isn’t a major setback from what lines might have otherwise experienced. The order covers only four months after July 1, the earliest Norwegian planned to resume voyages,” he said.
Besides, the cruise industry will get back to business under the current framework, albeit via a phased approach. However, operators complained Wednesday that the CDC set back their timetables. In addition, the agency “unfairly” singled out the industry from other tourism and hospitality sectors.
July Remains The Target
Targeting a July comeback for the cruise ship industry aligns with the federal government’s stated target of normalcy by Independence Day. Previously, President Joe Biden said that he hopes to have all American adults vaccinated by the end of May and that the country can resume normal celebrations by July 4. The CLIA, whose members comprise 95% of the global ocean cruise capacity, hopes that Biden’s projections include their industry.
CLIA spokesperson Laziza Lambert said the timing of the release reflects companies’ need for about 90 days to prepare ships for a return to commercial operations. This means that they will need a clear and distinct government mandate, plus a go-ahead from the CDC, to get ready by July.
Conditional Sailing Order
The current conditional sailing order is a more lenient order compared to the No-sail directive issued last October. It created a multistep process where cruise lines can secure approval to head back to the sea via different phases. However, not one of the major lines managed to get the approval to resume sailing. “The lack of any action by the CDC has effectively banned all sailings in the largest cruise market in the world,” CLIA noted. The cruise lines industry effectively went on hold by March this year. Some companies did start rolling out returns to non-US markets. This includes Royal Caribbean’s plans for May trips from Israel and June voyages from the Bahamas.
Asked about the CDC’s latest remarks, Lambert said the agency isn’t meeting its own deadlines under the CSO. “Since the CSO was issued, the CDC has not released any further guidance, as called for in the CSO, to support the resumption of U.S. cruise operations, even as other sectors have opened or continued to operate throughout the pandemic,” she explained.
Watch The Shiplife video where Royal Caribbean CEO Richard Fain answers questions on the CDC order to hold off full operations until November 1:
Loading ...Even as the federal government wants a return to normalcy by July, the CDC insists that cruise ships stay grounded. Do you agree with the CDC’s decision to hold off cruise line operations until November 1? Let us know what you think by sharing your comments below.
18 Comments
Systemic government overreach that defies citizens’ basic rights. Why is this nonsense being allowed in a free society protected by the Constitution? Because we are allowing it. Pathetic.
This is a political circus it is time for the people to take back what is there’s
The CDC is playing politics. There is no good reason to not cruise. The CDC could state that if all have had a vac. they could cruise. More over-reach by our elected leaders.
Folks speak up!
CDC = Chinese Directed Communism
Why take the vaccine when nothing changes, we need an incentive to get vaccinated, and the incentive is to be free once again of catching or passing off the virus. Isn’t that the point?
I have friends as well as family members who have already had the virus and are now getting the vaccine,,,,,,WHY?????
Why can we let all the illegal immigrant in the country but not let us cruise. And if it all about covid 19 . Are protection from this major surge .
Or use the crisis ships to allow all the illegals to have a nice vacation off shore while we use our country. Just a thought. Of course that would be inhumane somehow. Or compared to internment camps like wwII
Since Professional/Other Basketball Players can keep open armpits and naked faces inches away from each other during contest, with little lakes of their sweat to be periodically mopped up on the Stadium floor, why can’t OPEN SEA CRUISERS enjoy Ocean-travel journeys with passengers as long as their septic systems are reliably functioning?
CDC: where are ye?
This madness will only stop when we stop being complicit and stop complying with this nonsense. Please join me in not following these unconstitutional edicts. 1) stop pretending this is ok, 2) speak up, 3) ignore these idiots and live your life as a free human. Be courteous and courageous, other free people will follow your lead, they are just being intimidated. Let’s stop this madness now.
It’s government overreach unelected beaurocrats refusing to give up the power they think they have over everyone. They will destroy this country and the cruise industry unless someone forces their hand and shows them the facts on this pandemic.
We the American People need to stop listening to these jokesters. WE have a voice and We unit. We have seen too much in our history to listen to the government..0001% death rate…… History is trying to play into today. Lets be Americans.
Ahahahaha like any of you can afford to go on a cruise 🤣
Why would you have to take the vaccine if your body has high human immunity’s that is better than any vaccine could have!!!!
ahahahaha, maybe mommy and daddy can send you on one Branden, to the Soviet Union.
I’m sick of the government taking our constitutional rights away. We need to stand up for our rights and our government needs to go back to what we hired them for. If they’re not willing to do their job then step down and make room for the right people to govern. Mide they’re own business!
First off, the elected government no longer works for their employers (American Citizens). This country is so divided it makes one sick. There is no consistency in in this Covid situation. Mandates to wear masks are not LAWS. The Governor of my state has left the mask decision up to the merchants in each county. I drive for a living and visit many counties, some have no mask requirements with the exception of Government buildings and a few isolated merchants like the big box stores. I do carry a mask with me because I don’t know what to expect. The bottom line is for someone to have complete control of the citizens. What cracks me up is observing people driving alone in their cars ALONE and wearing a mask. If I am required to wear one, it comes off just outside the door of the building immediately.
Do the research! After getting the shot you can still get infected. Whats in that shot anyway? Wear 3 masks like the Pros suggest the have your O2 saturation checked. You’ll discover how low it has gotten in a few hours like the people who are required to wear it @ work all day.They don’t really know for sure if the shot even helps and if it is the cure. Get in line sheeple.