WEBVTT

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Welcome to Cruise News, your daily update on

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everything happening at sea. Visit cruisenews

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.io to see today's stories and sign up for email

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alerts. And a very warm welcome to this deep

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dive. It is Tuesday, January 20, 2026. I hope

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your week is off to a really good start. It is,

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yeah. We've got a stack of stories today that,

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um... On the surface, they look completely disconnected.

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We're talking new taxes in Hawaii. We're talking

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shipbuilding in Chile and then a wine award in

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London. Right. But when you actually line them

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up, they tell a really specific story about where

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the cruise industry is headed. They really do.

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I was thinking about this and it feels like a

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snapshot of the industry's evolution. It's all

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about. Intentionality. Intentionality. How so?

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Well, you have governments being intentional

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about who they tax and why. You have engineers

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being really intentional about how they power

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a ship. And then you have sommeliers being intentional

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about what they pour. I mean, the whole one size

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fits all model of cruising seems to be, you know,

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fading away. That is a perfect way to frame it.

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So let's start with the one that's going to hit

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people's wallets. Anyone thinking about a trip

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to the Aloha State in 2026? Well. The price just

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went up. Significantly, yeah. And this isn't

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just a rumor. The notifications are actually

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going out to guests right now. We're talking

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about Norwegian Cruise Line. They've started

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telling guests about a new tax. And usually,

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you know, when we talk taxes and fees, my eyes

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kind of glaze over a port fee here, a customs

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fee there. Standard stuff. Exactly. But this

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feels different. This feels like a fundamental

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shift in how a state sees a cruise ship. It is.

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It's a huge shift. And to get it, you have to

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understand this acronym TAT. Cat TAT, right.

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It stands for Transient Accommodations Tax. For

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years, if you flew to Honolulu and booked a hotel

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on Waikiki. You paid it. You paid the TAT. Or

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if you rented a condo on Maui. It's a lodging

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tax. The logic was always you're staying here.

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You're using our infrastructure. You pay. But

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if I was sleeping on the cruise ship docked right

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there, I didn't pay it. Exactly. The ship was

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seen as what? Transportation. Yeah. A self -contained

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bubble. But Hawaii has just flipped that logic.

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As of January 1st, 2026, they're saying a cruise

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passenger is effectively a transient guest. Just

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like the person in the hotel. And they want their

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cut. They want their cut. So let's get into the

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numbers because this isn't some small fee. I

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was looking at the breakdown and it's not like.

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$10 a day. It's a percentage, right? It is, yeah.

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It's an assessment of approximately 14 % of the

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cruise fare. 14%. That's massive. If you're in

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a suite that costs thousands, that is a huge

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chunk of change. It's huge. And the breakdown

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is fascinating. You've got the base state tax.

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That's 10 .25%. And then on top of that, there's

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a 0 .75 % green tax. Okay. I want to pause on

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that green tax. That's not just a buzzword they

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threw in there, is it? Not at all. Governor Josh

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Green has been very clear about this. He's linking

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this. money directly to climate resilience. And

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he's specifically referencing the, you know,

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the awful Maui wildfires in 2023. For a specific

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purpose. A very specific one. They think that

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little slice alone, the 0 .75%, is going to generate

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$100 million a year. Wow. So this is for protecting

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the islands. Okay, so state tax, green tax, but

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you said 14%. There's another layer. There is.

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The individual counties in Hawaii can add their

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own surcharge of up to 3%. So you stack all three

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of those, and yeah, you're hitting that 14 %

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mark. Okay, here's the part that I found really

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confusing. The reports say the tax is... Pro

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-rated. How do you pro -rate a cruise fare? Do

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they just slap 14 % on my whole $2 ,000 ticket?

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That's the million -dollar question for the cruise

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line accountants right now. And no, they don't

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tax the whole ticket. They only tax the portion

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of the fare that corresponds to the time the

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ship is physically in Hawaiian ports. Okay, so

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let's walk through that. If my cruise is from

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Vancouver to Tokyo and we stop in Honolulu for,

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what, eight hours? Right. I'm not paying 14 %

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on that whole two -week vacation cost. Correct.

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Your tax would be tiny because your time in port

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is minimal. Yeah. And this is where a Norwegian

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cruise line gets hit so hard. And think about

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the pride of America. Ah, right. The only big

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U .S.-flagged ship that stays in Hawaii all year

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round. Exactly. Its entire business is sailing

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between the islands. It's almost always in Hawaiian

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waters. So for that ship, the proration captures

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nearly the entire fare. That is so ironic. The

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one ship that's contributing the most to the

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local economy year -round is the one that gets

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hit the hardest, tax -wise. That's the irony.

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And the numbers, they're just staggering. The

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reports show that guests on a normal seven -night

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Norwegian sailing are seeing an extra $250 to

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$500 added per person. Wait, wait. Up to $500

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per person? Per person? For a family of four,

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that's $2 ,000? That's another vacation right

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there. It's a serious line item. It totally changes

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the value calculation. You compare that to a

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repositioning cruise like the Norwegian Spirit

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from Tahiti. The tax on that is maybe 60 or 70

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bucks. So the whole system kind of discourages

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the really immersive local itineraries. It definitely

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puts financial pressure on that model. And just

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to be clear for everyone listening, this tax

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is on the fare. It doesn't apply to your onboard

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spending. Oh, well, that's a small mercy, I guess.

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Your spa treatment, your dinner, those are safe.

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But surely Norwegian isn't just taking this lying

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down. Oh, no. Their lawyers are very busy. Norwegian,

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along with CLIA, the Cruise Lines International

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Association, they're challenging it in court.

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They're calling it unconstitutional. What's their

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main argument? It's basically about jurisdiction.

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They argue you can't tax a moving ship that's

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involved in interstate commerce the same way

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you tax a fixed building on land. They're saying

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we are not a hotel. But in the meantime, the

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passengers are paying. Yep. It's a collect now,

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maybe refund later strategy. They're charging

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it to be safe, but they've said if the law changes,

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they'll issue adjustments. And it's not just

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them. Disney Cruise Line has also started sending

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out notices. It really feels like a turning point.

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Instead of just limiting ships, Hawaii is saying

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you can come, but you have to pay for the upkeep

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of Paradise. It's changing the narrative from

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tourism as a gift to tourism as a transaction.

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And other places are watching this very, very

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closely. I bet they are. If Hawaii wins this,

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you can expect to see these kinds of taxes everywhere.

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Absolutely. All right, let's leave the accounts

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for a minute and talk about where that money

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is supposed to go protecting the environment.

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Because down in Chile, a new ship is trying to

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solve that problem with engineering instead of

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taxes. Yeah, this is a much more hopeful story.

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We're heading down to Valdivia, Chile. This is

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the Magellan Discoverer. And the big news is

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that it has officially floated out. Now, for

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anyone who isn't a ship nerd, explain what a

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float -out actually is. It's a huge milestone.

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It's the moment they flood the dry dock and the

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ship touches water for the very first time. So

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it's a test, really. It's a giant stress test.

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It proves the hull is watertight. It means all

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the heavy steel work is about 90 % complete.

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From here on, it's all about outfitting the wires,

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the furniture, the tech. And this ship is for

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a company called Antarctica 21. The first thing

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that struck me was the size. It's only 94 meters

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long. I think that's tiny. It's tiny. Maximum

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capacity is just 96 passengers. But then the

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notes say they only sell 76 spots. Why would

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you build a ship for 96 people and then not sell

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20 of the tickets? It sounds a little counterintuitive,

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but it's actually a brilliant solution to a very

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specific problem. Antarctica 21 does these fly

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cruises. Right, for people who want to skip the

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Drake Passage. Exactly. They fly you over the

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Drake Shake, that notoriously rough water, and

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you land on an island in Antarctica where the

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ship is waiting for you. Ah, so the bottleneck

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isn't the ship, it's the plane. Precisely. The

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plane they use to land on that... gravel runway

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has a strict passenger limit. So the ship's capacity

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is actually dictated by the aircraft. That is

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fascinating. An air -sea bridge. So what about

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the ship itself? What's under the hood? This

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is where it gets really cool. It's a hybrid electric

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propulsion system. It uses M engines with something

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called ABB azipods. Okay, break that down. What's

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an azipod? So a normal ship has a propeller out

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back and a rudder to steer. An azipod is an electric

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motor in a pod that hangs under the ship. The

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whole pod can rotate 360 degrees. It pulls the

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ship instead of pushing it. It's way more efficient

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and makes the ship... incredibly maneuverable,

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which you really need in the ice. And the hybrid

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part means batteries, I'm guessing. Big ones.

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A Corvus energy storage system. Basically huge

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marine grade lithium batteries. So it can run

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silently like an electric car. For short periods,

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yes. But the main benefit is something called

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peak shaving. So if the ship needs a burst of

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power to get through some ice, instead of firing

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up another diesel engine, it just draws from

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the battery. It smooths out the power usage.

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Exactly. And that makes it drastically quieter.

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And in Antarctica, that really matters. You're

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trying not to disturb the whales and the penguins.

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It's about being a polite guest. This is the

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second ship Asanoff has built for them, right?

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It seems like this small, high -tech, Chilean

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-built model is really working for them. It is.

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It proves you don't need the massive European

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shipyards to build these world class expedition

00:09:20.919 --> 00:09:22.860
ships. You know, speaking of high tech, I have

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to ask about this other ship in our notes, the

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Captain Arctic. Sounds like something from a

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movie. It really does. It's being built for a

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2027 launch. And if the Magellan Discoverer is

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like a hybrid car, the Captain Arctic is, I don't

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know, a futuristic sailboat. It has sails. It

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has five rigid aluminum sails with solar panels

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built right into them. Solar sails. That's amazing.

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They're aiming for a 90 percent CO2 reduction.

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And get this. It uses recycled wooden waste pellets

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for its boiler. So it's running on sun, wind

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and recycled wood. It feels like a new kind of

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space race. But instead of the moon, everyone's

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racing to get to the poles with the smallest

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possible footprint. That's the new currency in

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expedition cruising. It's not just I went to

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Antarctica. I went and I didn't mess it up. The

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luxury is the clean conscience. Well, speaking

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of luxury, let's pivot from the icy ends of the

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earth to the absolute pinnacle of comfort. Let's

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talk about the world. Ah, yes. The world. The

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floating city. For anyone who doesn't know, this

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is the ship where people actually own their apartments.

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They live on it full time as it sails the globe.

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And apparently they are very thirsty. Frogs chuckles.

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Let's say they have very refined palates. The

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world just won Best Ship Wine List from the World

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of Fine Wine magazine. And this isn't a new thing

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for them, is it? No, this is their 11th consecutive

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year winning this award for over a decade. 11th

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year. What does it take to win that award? 11

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times in a row. It can't just be having a few

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good bottles on board. It's about the scale,

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first of all. The ship has a cellar with a 15

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,000 bottle capacity. 15 ,000. That is a serious

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cellar. It is. Over 1 ,200 different labels from

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22 countries, plus sakes, plus spirits. But the

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real wow factor isn't just the size of the collection,

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it's how they source it. What do you mean? Well,

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most cruise lines stock up from a giant warehouse

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in Miami. They load the same wine on every ship.

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But the world is always moving, so they source

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locally. Ah, so if they're sailing around Japan.

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The beverage manager is on the ground, buying

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rare sakes directly from the brewers. If they're

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in the Mediterranean, they're picking up local

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vintages you'll never find anywhere else. The

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wine list literally changes with the map. It's

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a living document. The ultimate souvenir. You

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get to drink the place you're visiting. But they're

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taking it even further now. I read about the

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World Barrel Program. They're not just buying

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wine anymore. They're making it. They are. This

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is that trend of vertical integration hitting

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the luxury space. Their first vintage is called

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The Journey. Very appropriate. It's a 2022 Bordeaux

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blend. And they didn't just whip this up themselves.

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They partnered with Venuef. And who are they?

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They're owned by the Cazais family. If you know

00:12:05.429 --> 00:12:08.070
wine, you know that name. They own Chateau Lynch

00:12:08.070 --> 00:12:11.860
Bages. This is serious. Blue chip winemaking.

00:12:11.980 --> 00:12:13.799
It's incredible. It's not about the money. It's

00:12:13.799 --> 00:12:15.460
about having access to something nobody else

00:12:15.460 --> 00:12:18.720
has. I'm drinking a winemade just for my home.

00:12:18.860 --> 00:12:21.019
That's exactly. And they just hired a new beverage

00:12:21.019 --> 00:12:23.779
manager, Lubo Stoyanov, who used to be the head

00:12:23.779 --> 00:12:26.440
sommelier for all of Oceania. The pedigree is

00:12:26.440 --> 00:12:28.659
just off the charts. There was one other detail

00:12:28.659 --> 00:12:31.879
I found really interesting. Even on this ultralux

00:12:31.879 --> 00:12:33.899
ship, what they're drinking is changing. You

00:12:33.899 --> 00:12:36.600
saw the wellness angle. I did. Non -alcoholic

00:12:36.600 --> 00:12:39.190
wines. On the world. The wellness trend comes

00:12:39.190 --> 00:12:42.169
for us all. They brought in a whole curated list

00:12:42.169 --> 00:12:45.169
of non -alcoholic wines, plus a lot of biodynamic

00:12:45.169 --> 00:12:48.549
and organic options. I think even the super rich

00:12:48.549 --> 00:12:51.049
want to live longer. They want the fine dining

00:12:51.049 --> 00:12:53.210
ritual, maybe without the hangover. You know,

00:12:53.230 --> 00:12:54.629
it actually connects all the way back to the

00:12:54.629 --> 00:12:56.970
Magellan discoverer. How do you figure? Well,

00:12:57.049 --> 00:12:59.149
whether it's the fuel going into the engine or

00:12:59.149 --> 00:13:01.509
the wine going into the glass, the trend is cleaner.

00:13:02.259 --> 00:13:04.940
It's about removing the impurities, whether that's

00:13:04.940 --> 00:13:07.379
sulfur in the wine or noise pollution in the

00:13:07.379 --> 00:13:09.440
ocean. That's a brilliant connection. And if

00:13:09.440 --> 00:13:11.960
you layer the Hawaii story on top, it's about

00:13:11.960 --> 00:13:14.759
paying the true cost of that purity. Cleaner

00:13:14.759 --> 00:13:17.539
fuel costs more, better wine costs more, and

00:13:17.539 --> 00:13:19.980
maintaining a pristine island costs tax dollars.

00:13:20.100 --> 00:13:22.539
That feels like the big takeaway for 2026 so

00:13:22.539 --> 00:13:24.759
far. Cruising is maturing, it's getting more

00:13:24.759 --> 00:13:27.740
specialized, more responsible, and yeah, more

00:13:27.740 --> 00:13:31.039
expensive. The cheap... Generic vacation might

00:13:31.039 --> 00:13:34.059
be fading in favor of these very curated, very

00:13:34.059 --> 00:13:35.899
intentional experiences. I think you're right.

00:13:35.980 --> 00:13:37.659
It's becoming about the privilege of access.

00:13:37.919 --> 00:13:40.200
And that privilege now has a very clear price

00:13:40.200 --> 00:13:42.440
tag attached. I want to leave our listeners with

00:13:42.440 --> 00:13:45.840
a thought on that Hawaii tax. We talked about

00:13:45.840 --> 00:13:49.179
how it's prorated based on time and port. If

00:13:49.179 --> 00:13:52.200
other places start doing that, taxing ships based

00:13:52.200 --> 00:13:55.559
on how long they stick around, could we see a

00:13:55.559 --> 00:13:58.210
really weird incentive created? What do you mean?

00:13:58.409 --> 00:14:00.850
Could we see cruise lines designing itineraries

00:14:00.850 --> 00:14:03.929
to actively avoid land? That's a very provocative

00:14:03.929 --> 00:14:06.889
thought. Like, if it costs you $100 ,000 in tax

00:14:06.889 --> 00:14:09.889
to dock for two days, but zero to just stay at

00:14:09.889 --> 00:14:12.269
sea just outside their waters. The ships could

00:14:12.269 --> 00:14:14.389
just become these floating resorts that barely

00:14:14.389 --> 00:14:16.610
touch the destinations they're supposedly visiting.

00:14:16.750 --> 00:14:18.830
And then the local shops and restaurants lose

00:14:18.830 --> 00:14:21.649
out on all that business anyway. The law of unintended

00:14:21.649 --> 00:14:24.860
consequences. It's a delicate balance for sure.

00:14:24.940 --> 00:14:26.879
We will definitely be watching to see how the

00:14:26.879 --> 00:14:28.940
itineraries start to shift. We certainly will.

00:14:29.559 --> 00:14:32.460
Thanks for listening to Cruise News. Visit cruisenews

00:14:32.460 --> 00:14:35.100
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