1 00:00:00,000 --> 00:00:02,140 Welcome to Cruise News, your daily 2 00:00:02,140 --> 00:00:03,879 update on everything happening at 3 00:00:03,879 --> 00:00:06,540 sea. Visit CruiseNews .io to see 4 00:00:06,540 --> 00:00:08,400 today's stories and sign up for 5 00:00:08,400 --> 00:00:10,240 email alerts. We are definitely 6 00:00:10,240 --> 00:00:14,339 tracking a really massive structural 7 00:00:14,339 --> 00:00:15,720 shift across the industry today. 8 00:00:15,859 --> 00:00:17,219 Yeah, we really are. If you're looking 9 00:00:17,219 --> 00:00:19,800 at booking a sailing for, you know, 10 00:00:20,019 --> 00:00:22,460 2026 or 2027, the options on the 11 00:00:22,460 --> 00:00:23,820 table are fundamentally changing 12 00:00:23,820 --> 00:00:25,940 as we speak. Right, entirely. The 13 00:00:25,940 --> 00:00:27,120 overarching theme we're seeing right 14 00:00:27,120 --> 00:00:28,399 now is just, well, it's a theme 15 00:00:28,399 --> 00:00:30,179 of shifting plans. We're watching 16 00:00:30,179 --> 00:00:32,179 cruise lines execute these massive 17 00:00:32,179 --> 00:00:34,299 itinerary redeployments, basically 18 00:00:34,299 --> 00:00:36,100 completely abandoning certain regions. 19 00:00:36,679 --> 00:00:39,119 And we're also tracking this quiet 20 00:00:39,119 --> 00:00:41,579 but honestly aggressive surge in 21 00:00:41,579 --> 00:00:43,420 port costs. And that's altering 22 00:00:43,420 --> 00:00:45,079 the basic math of where these floating 23 00:00:45,079 --> 00:00:46,600 resorts can even afford to dock. 24 00:00:47,140 --> 00:00:49,280 Oh, completely. And You know, it 25 00:00:49,280 --> 00:00:50,700 ties directly into the strategic 26 00:00:50,700 --> 00:00:52,079 gambles that these lines are taking 27 00:00:52,079 --> 00:00:54,159 with their older hardware. Specifically, 28 00:00:54,359 --> 00:00:55,820 what it actually means for you if 29 00:00:55,820 --> 00:00:57,320 you book a sailing right after a 30 00:00:57,320 --> 00:00:58,740 ship comes out of a major dry dock. 31 00:00:58,859 --> 00:01:00,399 Right. Because none of these developments 32 00:01:00,399 --> 00:01:01,899 are happening in a vacuum, are they? 33 00:01:02,179 --> 00:01:03,820 No, not at all. They're all driven 34 00:01:03,820 --> 00:01:05,439 by the exact same core pressure. 35 00:01:05,819 --> 00:01:07,260 I mean, cruise lines are just trying 36 00:01:07,260 --> 00:01:09,500 to navigate a highly volatile global 37 00:01:09,500 --> 00:01:12,250 landscape. while protecting their 38 00:01:12,250 --> 00:01:13,849 profit margins. Yeah, it's a massive 39 00:01:13,849 --> 00:01:16,069 balancing act. Exactly. It's balancing, 40 00:01:16,290 --> 00:01:18,370 mitigating external risks, managing 41 00:01:18,370 --> 00:01:20,209 these skyrocketing operational costs, 42 00:01:20,730 --> 00:01:22,230 and like you said, finding new ways 43 00:01:22,230 --> 00:01:24,290 to extract value from their existing 44 00:01:24,290 --> 00:01:25,870 fleets. Well, let's start with that 45 00:01:25,870 --> 00:01:27,709 geography of risk because we just 46 00:01:27,709 --> 00:01:29,689 saw a pretty major domino fall. 47 00:01:30,200 --> 00:01:33,159 Costa Cruises has completely scrapped 48 00:01:33,159 --> 00:01:34,579 its plans for the Middle East for 49 00:01:34,579 --> 00:01:37,299 the winter 2026 -27 season. Yeah, 50 00:01:37,379 --> 00:01:38,640 they are pulling out entirely. She's 51 00:01:38,640 --> 00:01:40,280 not totally gone. Carnival Corporation, 52 00:01:40,579 --> 00:01:42,540 which owns Costa, obviously, they 53 00:01:42,540 --> 00:01:44,159 are looking at the geopolitical 54 00:01:44,159 --> 00:01:45,780 outlook for the Arabian Gulf and 55 00:01:45,780 --> 00:01:47,299 deciding they certainly do not want 56 00:01:47,299 --> 00:01:49,799 the exposure. Right. So, Cosas Merelda 57 00:01:49,799 --> 00:01:51,099 was supposed to be in the Gulf now. 58 00:01:51,599 --> 00:01:54,170 She is being yanked. Wow. Yeah, 59 00:01:54,209 --> 00:01:55,409 she's being sent to run a brand 60 00:01:55,409 --> 00:01:57,930 new seven night itinerary that links 61 00:01:57,930 --> 00:02:00,329 the Canary Islands and Madeira instead. 62 00:02:00,599 --> 00:02:02,920 And that causes this huge ripple 63 00:02:02,920 --> 00:02:04,760 effect across the rest of the fleet, 64 00:02:04,799 --> 00:02:06,760 right? Because Maralda is moving 65 00:02:06,760 --> 00:02:08,819 to the Canaries, the coast of Pacifica, 66 00:02:08,860 --> 00:02:11,199 which was originally supposed to 67 00:02:11,199 --> 00:02:12,759 take that Canaries route. She gets 68 00:02:12,759 --> 00:02:14,139 bumped. Right, she gets bumped. 69 00:02:14,719 --> 00:02:16,639 So now Pacifica is heading to the 70 00:02:16,639 --> 00:02:18,199 western Mediterranean following 71 00:02:18,199 --> 00:02:20,599 her plan dry dock. She'll be picking 72 00:02:20,599 --> 00:02:22,599 up itineraries that reach down into 73 00:02:22,599 --> 00:02:24,099 southern Europe and North Africa. 74 00:02:25,020 --> 00:02:26,400 And bookings for these new routes 75 00:02:26,400 --> 00:02:28,340 are supposed to open by, I think, 76 00:02:28,639 --> 00:02:30,650 late March. Late March, yeah. And 77 00:02:30,650 --> 00:02:33,189 the logistics of this, it's just 78 00:02:33,189 --> 00:02:35,969 staggering. When a cruise line redeploys 79 00:02:35,969 --> 00:02:39,110 vessels of this size, they are undoing 80 00:02:39,110 --> 00:02:41,069 literally years of advanced planning. 81 00:02:41,310 --> 00:02:42,409 Decades of man hours, probably. 82 00:02:42,449 --> 00:02:43,590 Oh, absolutely. They have to go 83 00:02:43,590 --> 00:02:45,110 out and secure new port births in 84 00:02:45,110 --> 00:02:46,810 the Mediterranean, negotiate new 85 00:02:46,810 --> 00:02:48,889 terminal space, tear up all their 86 00:02:48,889 --> 00:02:50,349 old provisioning contracts for food 87 00:02:50,349 --> 00:02:51,629 and fuel in the Middle East. Which 88 00:02:51,629 --> 00:02:53,750 is huge. Right, and then entirely 89 00:02:53,750 --> 00:02:55,289 rewrite their marketing strategies 90 00:02:55,289 --> 00:02:57,250 on top of it. So I have to ask about 91 00:02:57,250 --> 00:02:58,909 the passengers who are already booked 92 00:02:58,909 --> 00:03:01,169 on those Middle East sailings or, 93 00:03:01,169 --> 00:03:02,530 you know, the repositioning cruises 94 00:03:02,530 --> 00:03:04,469 to get there. Costa is offering 95 00:03:04,469 --> 00:03:06,210 them an immediate transfer to another 96 00:03:06,210 --> 00:03:08,909 cruise, plus 200 and onboard credit 97 00:03:08,909 --> 00:03:10,830 per cabin. Which breaks down to 98 00:03:10,830 --> 00:03:12,629 about 100 per person. Right, 100 99 00:03:12,629 --> 00:03:14,569 per person. And my initial reaction 100 00:03:14,569 --> 00:03:16,349 is that 100 per person feels, I 101 00:03:16,349 --> 00:03:18,370 don't know, a bit light. Like, if 102 00:03:18,370 --> 00:03:20,550 you had your heart set on seeing 103 00:03:20,550 --> 00:03:22,110 the Emirates and now you're being 104 00:03:22,110 --> 00:03:23,689 offered a week in Spain. I mean, 105 00:03:23,689 --> 00:03:25,430 I hear you. It feels like a letdown. 106 00:03:25,789 --> 00:03:27,810 But it actually is the industry 107 00:03:27,810 --> 00:03:29,569 standard for a cancellation this 108 00:03:29,569 --> 00:03:32,349 far out. Really? Yeah. Because these 109 00:03:32,349 --> 00:03:34,629 sailings are late 2026 and early 110 00:03:34,629 --> 00:03:37,349 2027, Costa's calculation is that 111 00:03:37,349 --> 00:03:39,110 they're giving passengers plenty 112 00:03:39,110 --> 00:03:40,469 of time to adjust their vacation 113 00:03:40,469 --> 00:03:42,169 plan. Oh, I see. So the onboard 114 00:03:42,169 --> 00:03:43,490 credit is just kind of a bonus. 115 00:03:43,610 --> 00:03:45,210 It's essentially a gesture of goodwill, 116 00:03:45,409 --> 00:03:47,189 right? They want to retain the booking 117 00:03:47,189 --> 00:03:48,490 within the Carnival Corporation 118 00:03:48,490 --> 00:03:50,710 family rather than losing that customer 119 00:03:50,710 --> 00:03:52,389 to a competitor. And speaking of 120 00:03:52,389 --> 00:03:55,120 competitors, This is where the story 121 00:03:55,120 --> 00:03:57,659 gets incredibly layered because 122 00:03:57,659 --> 00:04:00,340 Carnival Corporation cited an uncertain 123 00:04:00,340 --> 00:04:02,400 regional outlook and they didn't 124 00:04:02,400 --> 00:04:04,909 just pull Costa They also canceled 125 00:04:04,909 --> 00:04:07,229 Aida Cruise's season in the region. 126 00:04:07,430 --> 00:04:09,250 Right. Pulling the Aida Prima. Exactly. 127 00:04:09,870 --> 00:04:11,050 They stated they want to ensure 128 00:04:11,050 --> 00:04:12,870 every sailing remains relaxing, 129 00:04:13,210 --> 00:04:15,449 enjoyable and worry free. And you 130 00:04:15,449 --> 00:04:17,310 hear that and you naturally assume, 131 00:04:17,310 --> 00:04:18,850 well, the Arabian Gulf is about 132 00:04:18,850 --> 00:04:20,670 to be a ghost town for cruise ships. 133 00:04:20,970 --> 00:04:22,829 Yeah. But the reality is the exact 134 00:04:22,829 --> 00:04:24,930 opposite. It's wild. It really is. 135 00:04:25,230 --> 00:04:26,829 While Carnival Corporation is fleeing 136 00:04:26,829 --> 00:04:28,949 the region, several other major 137 00:04:28,949 --> 00:04:30,709 players are basically doubling down. 138 00:04:30,939 --> 00:04:32,759 The contrast is just fascinating. 139 00:04:32,920 --> 00:04:34,480 Let's look at who is actually staying. 140 00:04:35,000 --> 00:04:37,279 MSC Cruises is sending the MSC World 141 00:04:37,279 --> 00:04:39,019 Europa. And I just want to pause 142 00:04:39,019 --> 00:04:40,360 on that ship for a second because 143 00:04:40,360 --> 00:04:42,279 the scale is hard to even comprehend. 144 00:04:42,420 --> 00:04:45,519 It's massive. It is over 215 ,000 145 00:04:45,519 --> 00:04:47,839 gross tons and carries nearly 7 146 00:04:47,839 --> 00:04:49,720 ,000 guests. And just to clarify 147 00:04:49,720 --> 00:04:51,680 for the listener, because gross 148 00:04:51,680 --> 00:04:52,839 tons is a term that gets thrown 149 00:04:52,839 --> 00:04:54,379 around a lot in this industry, it 150 00:04:54,379 --> 00:04:55,439 doesn't actually measure weight. 151 00:04:55,519 --> 00:04:57,639 It's a measurement of interior volume. 152 00:04:58,199 --> 00:05:01,060 So one gross ton... equals exactly 153 00:05:01,060 --> 00:05:03,279 100 cubic feet of enclosed space. 154 00:05:03,439 --> 00:05:06,040 Okay, wow. So when we say 215 ,000 155 00:05:06,040 --> 00:05:08,160 gross tons, we're talking about 156 00:05:08,160 --> 00:05:10,279 a vessel with the interior volume 157 00:05:10,279 --> 00:05:13,160 of a massive skyscraper, basically 158 00:05:13,160 --> 00:05:14,839 operating as a floating city. Thank 159 00:05:14,839 --> 00:05:16,560 you for that because it really highlights 160 00:05:16,560 --> 00:05:18,920 the sheer physical and honestly 161 00:05:18,920 --> 00:05:20,680 financial risk of sending a piece 162 00:05:20,680 --> 00:05:22,439 of hardware that massive into a 163 00:05:22,439 --> 00:05:24,180 region. And MSC isn't alone there. 164 00:05:24,519 --> 00:05:26,980 No, not at all. Celestial is operating 165 00:05:26,980 --> 00:05:29,560 their Desert Days and iconic Arabia 166 00:05:29,560 --> 00:05:32,480 itineraries. TUI is sending a brand 167 00:05:32,480 --> 00:05:35,060 new ship, the Mine Shift Flow. Aroya 168 00:05:35,060 --> 00:05:36,620 is planning a three month deployment. 169 00:05:37,459 --> 00:05:39,120 And Explorer Journeys is debuting 170 00:05:39,120 --> 00:05:40,779 the Explorer 2 in the region. I 171 00:05:40,779 --> 00:05:42,279 mean, Explorer did build in a little 172 00:05:42,279 --> 00:05:43,920 breathing room, right? They extended 173 00:05:43,920 --> 00:05:45,600 their cancellation window by 45 174 00:05:45,600 --> 00:05:47,980 days. They did, yeah. But structurally, 175 00:05:48,079 --> 00:05:49,639 they are holding the course. It 176 00:05:49,639 --> 00:05:51,519 just feels like a massive high stakes 177 00:05:51,519 --> 00:05:53,519 game of risk. It's a perfect way 178 00:05:53,519 --> 00:05:54,709 to put it. But instead of little 179 00:05:54,709 --> 00:05:56,149 plastic armies, you're playing with, 180 00:05:56,149 --> 00:05:58,129 like, billion dollar floating resorts. 181 00:05:58,430 --> 00:05:59,490 And you have to commit your pieces 182 00:05:59,490 --> 00:06:01,149 to the board years before the game 183 00:06:01,149 --> 00:06:04,209 actually starts. So if MSC is comfortable 184 00:06:04,209 --> 00:06:06,870 sending 7 ,000 passengers into the 185 00:06:06,870 --> 00:06:09,930 Arabian Gulf, why is Carnival Corporation 186 00:06:09,930 --> 00:06:12,550 viewing the exact same body of water 187 00:06:12,550 --> 00:06:15,449 as too risky? Well, it really comes 188 00:06:15,449 --> 00:06:16,810 down to corporate risk tolerance. 189 00:06:17,490 --> 00:06:19,410 MSC might have a different calculation 190 00:06:19,410 --> 00:06:21,029 regarding their European source 191 00:06:21,029 --> 00:06:22,949 markets, or perhaps they just have 192 00:06:22,949 --> 00:06:24,430 a higher threshold for regional 193 00:06:24,430 --> 00:06:26,490 uncertainty. Carnival Corporation 194 00:06:26,490 --> 00:06:28,470 is looking at the landscape and 195 00:06:28,470 --> 00:06:30,050 deciding that the financial penalty 196 00:06:30,050 --> 00:06:31,810 of having to scramble and redeploy 197 00:06:31,810 --> 00:06:33,870 a ship, say, six months from now... 198 00:06:33,870 --> 00:06:35,709 Which would be a nightmare. Exactly. 199 00:06:35,790 --> 00:06:37,490 They think that's infinitely worse 200 00:06:37,490 --> 00:06:38,949 than the pain of ripping the Band 201 00:06:38,949 --> 00:06:41,160 -Aid off today. They want the absolute 202 00:06:41,160 --> 00:06:42,620 certainty of the Canary Islands 203 00:06:42,620 --> 00:06:44,279 and the Mediterranean, where those 204 00:06:44,279 --> 00:06:46,000 logistical variables are heavily, 205 00:06:46,000 --> 00:06:47,500 heavily controlled. That makes me 206 00:06:47,500 --> 00:06:48,759 wonder about the passengers' role 207 00:06:48,759 --> 00:06:50,680 in all this. If you are a loyal 208 00:06:50,680 --> 00:06:53,300 Costa cruiser, your geographic options 209 00:06:53,300 --> 00:06:54,860 are suddenly being dictated not 210 00:06:54,860 --> 00:06:56,399 by where the ocean can take you, 211 00:06:56,660 --> 00:06:59,319 but by a corporate boardroom's geopolitical 212 00:06:59,319 --> 00:07:01,160 risk assessment. Which is a reality 213 00:07:01,160 --> 00:07:02,600 cruisers just have to accept right 214 00:07:02,600 --> 00:07:05,579 now. But there is another much quieter 215 00:07:05,579 --> 00:07:07,139 force dictating where these ships 216 00:07:07,139 --> 00:07:09,310 can sail. It doesn't make international 217 00:07:09,310 --> 00:07:10,990 headlines the way geopolitical tension 218 00:07:10,990 --> 00:07:13,970 does, but it is fundamentally altering 219 00:07:13,970 --> 00:07:15,160 the cruise map. You're talking about 220 00:07:15,160 --> 00:07:16,860 the rising cost of actually pulling 221 00:07:16,860 --> 00:07:18,899 into port. Exactly. We are seeing 222 00:07:18,899 --> 00:07:20,459 this play out right now in Portland, 223 00:07:20,459 --> 00:07:22,339 Maine. The Portland City Council 224 00:07:22,339 --> 00:07:24,120 just approved tariff 11, which goes 225 00:07:24,120 --> 00:07:27,300 into effect January 1st, 2027, and 226 00:07:27,300 --> 00:07:29,360 they are hiking their fees significantly. 227 00:07:29,459 --> 00:07:31,160 They really are. The per passenger 228 00:07:31,160 --> 00:07:33,939 tariff is climbing from $18 to $24 229 00:07:33,939 --> 00:07:36,660 by 2030. And the annual infrastructure 230 00:07:36,660 --> 00:07:39,980 fee is jumping from $3 to $7. And 231 00:07:39,980 --> 00:07:42,000 keep in mind, Portland sees about 232 00:07:42,000 --> 00:07:44,649 100 cruise visits a year. And we 233 00:07:44,649 --> 00:07:46,370 are talking about massive vessels. 234 00:07:46,709 --> 00:07:48,129 Yeah, the mega ships. Right, ships 235 00:07:48,129 --> 00:07:50,370 like the MSC Maravilla, the Norwegian 236 00:07:50,370 --> 00:07:51,870 Breakaway, the Majestic Princess. 237 00:07:52,569 --> 00:07:54,410 These ships bring thousands of people 238 00:07:54,410 --> 00:07:56,569 to Casco Bay all at once. And, you 239 00:07:56,569 --> 00:07:57,810 know, my first thought when I see 240 00:07:57,810 --> 00:08:00,149 a $10 overall fee increase per passenger 241 00:08:00,149 --> 00:08:02,089 is to kind of shrug. Sure. Like 242 00:08:02,089 --> 00:08:04,410 if a family is paying $3 ,000 for 243 00:08:04,410 --> 00:08:06,370 a cruise vacation, an extra $10 244 00:08:06,370 --> 00:08:08,610 feels like a rounding error. Why 245 00:08:08,610 --> 00:08:10,129 would a multi -billion dollar cruise 246 00:08:10,129 --> 00:08:11,689 line actually care about a marginal 247 00:08:11,689 --> 00:08:13,459 fee hike in Maine? Well, because 248 00:08:13,459 --> 00:08:15,319 you cannot look at that $10 in a 249 00:08:15,319 --> 00:08:17,500 vacuum. The cruise business operates 250 00:08:17,500 --> 00:08:19,439 on incredibly tight margins per 251 00:08:19,439 --> 00:08:21,459 passenger. Right. Economies of scale. 252 00:08:21,779 --> 00:08:24,480 Exactly. So a $10 increase on a 253 00:08:24,480 --> 00:08:26,199 ship carrying 4 ,000 passengers 254 00:08:26,199 --> 00:08:28,040 means the line is suddenly paying 255 00:08:28,040 --> 00:08:30,899 $40 ,000 more just to tie off the 256 00:08:30,899 --> 00:08:33,000 ropes for eight hours. Wow. And 257 00:08:33,000 --> 00:08:35,159 that is just one port. It compounds. 258 00:08:35,440 --> 00:08:37,360 If Portland raises fees, and then 259 00:08:37,360 --> 00:08:39,200 Bar Harbor raises fees, and then 260 00:08:39,200 --> 00:08:42,059 Halifax raises fees, suddenly the 261 00:08:42,059 --> 00:08:44,779 overhead for a standard seven -day 262 00:08:44,779 --> 00:08:46,779 New England itinerary has completely 263 00:08:46,779 --> 00:08:48,519 spiked. And the structural reality 264 00:08:48,519 --> 00:08:49,840 of that route changes entirely. 265 00:08:50,220 --> 00:08:51,779 Initially, yeah, cruise lines will 266 00:08:51,779 --> 00:08:53,220 quietly pass those port charges 267 00:08:53,220 --> 00:08:55,039 down to you, the passenger, folding 268 00:08:55,039 --> 00:08:56,539 them into the taxes and fees at 269 00:08:56,539 --> 00:08:58,039 checkout. Which we all love. Right. 270 00:08:58,200 --> 00:08:59,820 But eventually, if the baseline 271 00:08:59,820 --> 00:09:01,340 cost of an itinerary becomes too 272 00:09:01,340 --> 00:09:03,090 expensive, consumers will push back. 273 00:09:03,429 --> 00:09:04,870 If the math stops making sense, 274 00:09:05,210 --> 00:09:06,210 the cruise line will simply move 275 00:09:06,210 --> 00:09:07,470 the ship to a region with cheaper 276 00:09:07,470 --> 00:09:09,169 operational costs. But Portland 277 00:09:09,169 --> 00:09:12,809 is trying to, I guess, soften the 278 00:09:12,809 --> 00:09:14,870 blow for certain ships. Tariff 11 279 00:09:14,870 --> 00:09:17,149 includes this fascinating environmental 280 00:09:17,149 --> 00:09:19,149 lever. Yes, the fuel discount. Right. 281 00:09:19,269 --> 00:09:21,210 They're offering a $2 per passenger 282 00:09:21,210 --> 00:09:23,830 discount for ships that use low 283 00:09:23,830 --> 00:09:26,269 -sulfur fuel, specifically marine 284 00:09:26,269 --> 00:09:28,990 gas oil, while they are docked or 285 00:09:28,990 --> 00:09:30,769 anchored in Portland Harbor. And 286 00:09:30,769 --> 00:09:32,529 that discount exists because of 287 00:09:32,529 --> 00:09:33,750 a pretty massive infrastructure 288 00:09:33,750 --> 00:09:35,970 gap. Portland doesn't offer shore 289 00:09:35,970 --> 00:09:38,139 power. Meaning the ship can't just 290 00:09:38,139 --> 00:09:40,159 plug a giant extension cord into 291 00:09:40,159 --> 00:09:42,100 the local electrical grid when it 292 00:09:42,100 --> 00:09:43,639 docks. Exactly, they cannot plug 293 00:09:43,639 --> 00:09:45,679 in. And a modern cruise ship requires 294 00:09:45,679 --> 00:09:47,779 immense power, even when it is just 295 00:09:47,779 --> 00:09:49,200 sitting still. Right, for the hotel 296 00:09:49,200 --> 00:09:51,019 operations. Yeah, the lights, the 297 00:09:51,019 --> 00:09:52,960 massive industrial kitchens, the 298 00:09:52,960 --> 00:09:54,919 air conditioning for 4 ,000 people. 299 00:09:55,519 --> 00:09:56,980 It all requires the ship to keep 300 00:09:56,980 --> 00:09:58,480 running its engines or generators. 301 00:09:59,039 --> 00:10:01,220 Usually ships burn heavy fuel oil, 302 00:10:01,539 --> 00:10:03,539 which is cheap. but highly polluting. 303 00:10:04,200 --> 00:10:05,500 Okay. Marine gas oil is a cleaner, 304 00:10:05,700 --> 00:10:07,320 highly refined alternative, but 305 00:10:07,320 --> 00:10:08,860 it is significantly more expensive. 306 00:10:09,279 --> 00:10:10,799 So Portland is offering this tariff 307 00:10:10,799 --> 00:10:12,879 discount to incentivize lines to 308 00:10:12,879 --> 00:10:14,639 burn the expensive, cleaner fuel 309 00:10:14,639 --> 00:10:16,539 while sitting in Casco Bay. It's 310 00:10:16,539 --> 00:10:17,879 basically like a toll road that 311 00:10:17,879 --> 00:10:19,740 suddenly implements surge pricing 312 00:10:19,740 --> 00:10:21,960 to fix its potholes, but then offers 313 00:10:21,960 --> 00:10:23,799 you an EZ Pass discount if you happen 314 00:10:23,799 --> 00:10:25,460 to be driving a hybrid vehicle. 315 00:10:25,759 --> 00:10:27,500 That is a perfect analogy. And they 316 00:10:27,500 --> 00:10:28,860 aren't stopping at fuel types either. 317 00:10:29,230 --> 00:10:31,490 The city's sustainability and transportation 318 00:10:31,490 --> 00:10:33,350 committee is reviewing options for 319 00:10:33,350 --> 00:10:36,450 their 2026 agenda targeting exhaust 320 00:10:36,450 --> 00:10:38,490 gas cleaning systems. Scrubbers. 321 00:10:38,529 --> 00:10:40,690 Scrubbers, right. This is a massive 322 00:10:40,690 --> 00:10:42,129 flash point in the industry right 323 00:10:42,129 --> 00:10:43,809 now. I always hear the term scrubber 324 00:10:43,809 --> 00:10:45,870 and I just imagine like a giant 325 00:10:45,870 --> 00:10:47,929 sponge in the smokestack. How does 326 00:10:47,929 --> 00:10:49,889 this technology actually work and 327 00:10:49,889 --> 00:10:51,509 why does Portland want to eliminate 328 00:10:51,509 --> 00:10:53,789 the discharge from it? So a scrubber 329 00:10:53,789 --> 00:10:56,289 is essentially a shower system inside 330 00:10:56,289 --> 00:10:58,440 the ship's exhaust funnel. Instead 331 00:10:58,440 --> 00:11:00,460 of burning expensive, low -sulfur 332 00:11:00,460 --> 00:11:02,399 fuel, the ship burns the cheaper, 333 00:11:02,659 --> 00:11:04,980 dirty, heavy fuel oil. Okay. As 334 00:11:04,980 --> 00:11:06,759 the toxic exhaust travels up the 335 00:11:06,759 --> 00:11:08,840 funnel, the scrubber sprays massive 336 00:11:08,840 --> 00:11:10,580 amounts of seawater into the exhaust 337 00:11:10,580 --> 00:11:12,960 stream. The water essentially scrubs 338 00:11:12,960 --> 00:11:14,720 the sulfur out of the smoke, which 339 00:11:14,720 --> 00:11:16,379 allows the ship to meet air quality 340 00:11:16,379 --> 00:11:18,019 standards. But the sulfur doesn't 341 00:11:18,019 --> 00:11:19,639 just disappear. No, it goes into 342 00:11:19,639 --> 00:11:21,899 the water. In an open -loop scrubber 343 00:11:21,899 --> 00:11:23,960 system, that acidic sulfur -heavy 344 00:11:23,960 --> 00:11:26,120 wash water is then discharged directly 345 00:11:26,120 --> 00:11:28,100 back into the ocean. Yeah, so local 346 00:11:28,100 --> 00:11:29,600 advocacy groups in Portland are 347 00:11:29,600 --> 00:11:31,259 pushing to eliminate that wash water 348 00:11:31,259 --> 00:11:33,279 discharge into Casco Bay, arguing 349 00:11:33,279 --> 00:11:35,100 it harms the local marine ecosystem. 350 00:11:35,240 --> 00:11:36,559 which really puts the city in a 351 00:11:36,559 --> 00:11:37,899 tough spot. They have to balance 352 00:11:37,899 --> 00:11:39,539 funding their working waterfront 353 00:11:39,539 --> 00:11:41,620 facilities with managing the environmental 354 00:11:41,620 --> 00:11:43,200 impact of these massive floating 355 00:11:43,200 --> 00:11:46,080 cities. And Portland isn't an outlier 356 00:11:46,080 --> 00:11:48,799 here. Juneau, Alaska has increased 357 00:11:48,799 --> 00:11:50,399 passenger fees for environmental 358 00:11:50,399 --> 00:11:52,679 mitigation. Hawaii lawmakers are 359 00:11:52,679 --> 00:11:54,519 proposing a green fee for climate 360 00:11:54,519 --> 00:11:57,000 resilience. And Bar Harbor voters 361 00:11:57,000 --> 00:11:59,940 famously approved a 1 ,000 passenger 362 00:11:59,940 --> 00:12:02,159 daily limit. We are witnessing a 363 00:12:02,159 --> 00:12:03,679 systemic repricing of the cruise 364 00:12:03,679 --> 00:12:05,840 product. The destinations hold the 365 00:12:05,840 --> 00:12:07,340 leverage right now, and they are 366 00:12:07,340 --> 00:12:09,419 demanding a higher premium for access. 367 00:12:09,779 --> 00:12:11,179 So if destinations are becoming 368 00:12:11,179 --> 00:12:13,240 vastly more expensive to visit and 369 00:12:13,240 --> 00:12:14,360 cruise lines are being squeezed 370 00:12:14,360 --> 00:12:16,379 on margins, how do they make up 371 00:12:16,379 --> 00:12:17,539 the difference? I mean, they can't 372 00:12:17,539 --> 00:12:19,720 just rely on the shiny billion dollar 373 00:12:19,720 --> 00:12:21,039 mega ships that launch every year 374 00:12:21,039 --> 00:12:22,799 to carry the entire financial load 375 00:12:22,799 --> 00:12:24,840 of the company. No, they have to 376 00:12:24,840 --> 00:12:26,860 extract maximum value from the ships 377 00:12:26,860 --> 00:12:29,039 they already own. That means investing 378 00:12:29,039 --> 00:12:31,419 heavily in legacy tonnage to keep 379 00:12:31,419 --> 00:12:32,980 those older vessels competitive 380 00:12:32,980 --> 00:12:34,620 enough to command premium ticket 381 00:12:34,620 --> 00:12:36,779 prices. Let's look at P &O Cruises 382 00:12:36,779 --> 00:12:38,440 Ventura as the perfect case study 383 00:12:38,440 --> 00:12:40,419 for this. Yes. This is a grand class 384 00:12:40,419 --> 00:12:42,440 ship built in 2008. She carries 385 00:12:42,440 --> 00:12:45,100 about 3 ,100 guests and she just 386 00:12:45,100 --> 00:12:46,399 returned to service on February 387 00:12:46,399 --> 00:12:48,519 27th following a major dry dock 388 00:12:48,519 --> 00:12:50,340 at the Damon Shipyard in Rotterdam. 389 00:12:50,759 --> 00:12:53,080 And a ship built in 2008 is practically 390 00:12:53,080 --> 00:12:54,960 a different era in cruise design. 391 00:12:55,059 --> 00:12:58,210 Oh, totally. wants to deploy Ventura 392 00:12:58,210 --> 00:13:00,470 on lucrative long -haul itineraries, 393 00:13:00,809 --> 00:13:02,110 they cannot send her out looking 394 00:13:02,110 --> 00:13:03,929 like a mid -2000s time capsule. 395 00:13:04,370 --> 00:13:05,570 And they certainly aren't easing 396 00:13:05,570 --> 00:13:07,529 her back into service with, like, 397 00:13:07,629 --> 00:13:09,990 short, cheap weekend getaways. Look 398 00:13:09,990 --> 00:13:11,250 at the itinerary they put her on 399 00:13:11,250 --> 00:13:12,649 right out of the shipyard. It's 400 00:13:12,649 --> 00:13:14,629 a 35 -night repositioning -style 401 00:13:14,629 --> 00:13:16,350 cruise from Southampton to the Caribbean 402 00:13:16,350 --> 00:13:19,539 and the US. 35 nights. Yeah. And 403 00:13:19,539 --> 00:13:21,379 the stops are impressive. La Coruña, 404 00:13:21,639 --> 00:13:23,559 Praia da Vitoria, Port Canaveral, 405 00:13:23,799 --> 00:13:26,240 Miami, Cozumel, Belize, Rodatan, 406 00:13:26,440 --> 00:13:28,320 Freeport. And a standout, extended 407 00:13:28,320 --> 00:13:30,279 two -day stay in New Orleans. Right. 408 00:13:30,580 --> 00:13:32,080 And then following this, it heads 409 00:13:32,080 --> 00:13:33,379 back to Northern Europe and the 410 00:13:33,379 --> 00:13:35,840 Canaries, hitting places like Zebraga, 411 00:13:36,320 --> 00:13:40,080 Santander, Vigo, Funchal, and Tenerife. 412 00:13:40,639 --> 00:13:42,379 But to convince a modern consumer 413 00:13:42,379 --> 00:13:44,440 to spend over a month on a single 414 00:13:44,440 --> 00:13:46,629 ship, the onboard environment has 415 00:13:46,629 --> 00:13:49,370 to meet 2026 expectations. And they 416 00:13:49,370 --> 00:13:51,169 completely overhauled the interior 417 00:13:51,169 --> 00:13:53,210 to meet those expectations. In the 418 00:13:53,210 --> 00:13:54,370 cabins and suites, they stripped 419 00:13:54,370 --> 00:13:56,090 out the old look and brought in 420 00:13:56,090 --> 00:13:58,110 warmer, neutral tones, new carpets, 421 00:13:58,490 --> 00:14:00,690 updated soft furnishings. They even 422 00:14:00,690 --> 00:14:02,230 added decorative ceiling lighting 423 00:14:02,230 --> 00:14:04,690 and sweet bedside maps. And in the 424 00:14:04,690 --> 00:14:06,889 public spaces, the main atrium got 425 00:14:06,889 --> 00:14:08,730 a new dance floor with these marquetry 426 00:14:08,730 --> 00:14:10,899 effects. timber finishes. They modernize 427 00:14:10,899 --> 00:14:12,340 the color schemes across the Red 428 00:14:12,340 --> 00:14:14,740 Bar, Tamarind Club, Havana, and 429 00:14:14,740 --> 00:14:16,259 Metropolis. It's a huge refresh. 430 00:14:16,519 --> 00:14:17,799 But it's the dining and wellness 431 00:14:17,799 --> 00:14:19,720 upgrades that reveal the true strategy 432 00:14:19,720 --> 00:14:21,159 here, don't they? Exactly. This 433 00:14:21,159 --> 00:14:22,440 isn't just about making the ship 434 00:14:22,440 --> 00:14:24,419 look pretty. It is about driving 435 00:14:24,419 --> 00:14:26,639 onboard revenue. Explain that connection 436 00:14:26,639 --> 00:14:28,659 for me. How does, say, a carpet 437 00:14:28,659 --> 00:14:30,659 update actually drive revenue? It's 438 00:14:30,659 --> 00:14:33,399 all about consumer psychology. Sindhu, 439 00:14:33,620 --> 00:14:35,120 their Indian specialty restaurant, 440 00:14:35,519 --> 00:14:37,259 received beautiful new block printing 441 00:14:37,259 --> 00:14:40,259 style carpets. They updated Epicurean, 442 00:14:40,519 --> 00:14:42,519 Beach House, Bay Tree, Saffron, 443 00:14:42,639 --> 00:14:44,759 and Waterside. They even redesigned 444 00:14:44,759 --> 00:14:46,720 the 800 -seat Arena Theater using 445 00:14:46,720 --> 00:14:49,320 Greek geometric symmetry. When a 446 00:14:49,320 --> 00:14:51,460 space feels premium, modern, and 447 00:14:51,460 --> 00:14:53,340 intentionally designed, passengers 448 00:14:53,340 --> 00:14:54,919 are statistically more likely to 449 00:14:54,919 --> 00:14:56,259 spend money on specialty dining 450 00:14:56,259 --> 00:14:58,240 cover charges, premium cocktails, 451 00:14:58,679 --> 00:15:00,759 and retail. That makes total sense, 452 00:15:00,879 --> 00:15:01,899 especially when you look at what 453 00:15:01,899 --> 00:15:03,740 they did in the Oasis spa. They 454 00:15:03,740 --> 00:15:06,019 introduced three Japanese head rituals 455 00:15:06,019 --> 00:15:08,340 for scalp care and relaxation. Right, 456 00:15:08,500 --> 00:15:09,960 alongside a visual refresh that 457 00:15:09,960 --> 00:15:12,139 combines geometric tiles with warm 458 00:15:12,139 --> 00:15:13,759 tones. They are totally tapping 459 00:15:13,759 --> 00:15:15,559 into the massive consumer demand 460 00:15:15,559 --> 00:15:17,159 for high -end wellness experiences. 461 00:15:17,580 --> 00:15:18,799 If you're stressed out about the 462 00:15:18,799 --> 00:15:21,080 $24 port tax in Portland, you can 463 00:15:21,080 --> 00:15:22,460 just forget about it while getting 464 00:15:22,460 --> 00:15:24,259 a Japanese scalp treatment. Exactly. 465 00:15:24,539 --> 00:15:26,200 And they also added new retail spaces 466 00:15:26,200 --> 00:15:28,529 on decks six and seven. Every single 467 00:15:28,529 --> 00:15:29,850 square foot of a legacy ship has 468 00:15:29,850 --> 00:15:31,429 to be optimized to generate the 469 00:15:31,429 --> 00:15:33,190 revenue needed to offset the rising 470 00:15:33,190 --> 00:15:35,230 costs we discussed earlier. But 471 00:15:35,230 --> 00:15:37,470 there is a massive caveat for anyone 472 00:15:37,470 --> 00:15:39,350 listening who thinks, great, I'll 473 00:15:39,350 --> 00:15:40,830 just book the first sailing after 474 00:15:40,830 --> 00:15:42,230 a ship gets upgraded. Yes, there 475 00:15:42,230 --> 00:15:44,169 is. We need to talk about the reality 476 00:15:44,169 --> 00:15:46,470 of the shipyard. Ventura's dry dock 477 00:15:46,470 --> 00:15:48,950 ran long. And because of that delay, 478 00:15:49,470 --> 00:15:51,529 P &O had to abruptly cancel a four 479 00:15:51,529 --> 00:15:52,929 night cruise departing February 480 00:15:52,929 --> 00:15:54,970 23rd that was supposed to feature 481 00:15:54,970 --> 00:15:56,610 an overnight stay in Amsterdam. 482 00:15:57,100 --> 00:15:59,220 The logistics of a dry dock are 483 00:15:59,220 --> 00:16:01,179 just mind -boggling. You are taking 484 00:16:01,179 --> 00:16:04,419 a 3 ,100 guest floating hotel, lifting 485 00:16:04,419 --> 00:16:06,360 it entirely out of the water, and 486 00:16:06,360 --> 00:16:08,059 coordinating thousands of contractors, 487 00:16:08,259 --> 00:16:10,500 electricians, and designers simultaneously. 488 00:16:10,700 --> 00:16:12,279 It's a logistical tightrope. It 489 00:16:12,279 --> 00:16:14,279 really is. It's basically the ultimate 490 00:16:14,279 --> 00:16:16,080 home renovation, but on a maritime 491 00:16:16,080 --> 00:16:18,419 scale. You keep the strong foundational 492 00:16:18,419 --> 00:16:20,679 bones of the 2008 build, but you 493 00:16:20,679 --> 00:16:22,200 tear out the outdated fixtures to 494 00:16:22,200 --> 00:16:24,639 create this 2026 open -concept, 495 00:16:24,860 --> 00:16:26,500 wellness -focused interior. Right. 496 00:16:26,539 --> 00:16:28,279 But anyone who has ever survived 497 00:16:28,279 --> 00:16:30,019 a home renovation knows the contractor 498 00:16:30,019 --> 00:16:31,519 never finishes on the exact day 499 00:16:31,519 --> 00:16:33,399 they promise. You open up a wall 500 00:16:33,399 --> 00:16:34,899 and find a rusted pipe. Oh, exactly. 501 00:16:35,240 --> 00:16:36,659 In a shipyard, they pull up a deck 502 00:16:36,659 --> 00:16:38,299 and find structural issues that 503 00:16:38,299 --> 00:16:39,820 require an extra three days of welding. 504 00:16:40,120 --> 00:16:41,940 And supply chain issues are ramped 505 00:16:41,940 --> 00:16:44,000 into. Right. If the custom marketry 506 00:16:44,000 --> 00:16:45,340 timber for that dance floor gets 507 00:16:45,340 --> 00:16:47,039 delayed at a border crossing, the 508 00:16:47,039 --> 00:16:49,159 entire project stalls. Delays are 509 00:16:49,159 --> 00:16:50,940 just a structural reality of this 510 00:16:50,940 --> 00:16:52,919 kind of heavy maintenance. So for 511 00:16:52,919 --> 00:16:54,379 the listener mapping out their next 512 00:16:54,379 --> 00:16:56,580 vacation calendar, how should they 513 00:16:56,580 --> 00:16:58,419 approach a post dry dock sailing? 514 00:16:59,120 --> 00:17:00,980 Is the reward of stepping onto a 515 00:17:00,980 --> 00:17:03,000 freshly polished ship with a brand 516 00:17:03,000 --> 00:17:05,440 new spa worth the risk of, you know, 517 00:17:05,680 --> 00:17:07,220 losing your Amsterdam trip at the 518 00:17:07,220 --> 00:17:09,019 last minute? Well, you have to book 519 00:17:09,019 --> 00:17:10,920 it with a flexible mindset. If you 520 00:17:10,920 --> 00:17:12,299 book the very first revenue sailing 521 00:17:12,299 --> 00:17:14,599 out of a shipyard, you are actively 522 00:17:14,599 --> 00:17:16,539 absorbing some of the cruise line's 523 00:17:16,539 --> 00:17:18,400 schedule risk. If they run long, 524 00:17:18,799 --> 00:17:20,039 your vacation is the collateral 525 00:17:20,039 --> 00:17:21,700 damage. You essentially become the 526 00:17:21,700 --> 00:17:23,059 beta tester for the new plumbing. 527 00:17:23,519 --> 00:17:25,980 In many ways, yes. But the payoff 528 00:17:25,980 --> 00:17:27,480 is that you get to experience a 529 00:17:27,480 --> 00:17:29,440 unique hybrid. Older ships like 530 00:17:29,440 --> 00:17:32,279 Ventura often have fantastic classic 531 00:17:32,279 --> 00:17:34,380 layouts, wider promenades, more 532 00:17:34,380 --> 00:17:36,319 spacious public flow that some of 533 00:17:36,319 --> 00:17:38,119 the modern mega ships actually lack 534 00:17:38,119 --> 00:17:39,740 because they are so crammed with 535 00:17:39,740 --> 00:17:40,940 attractions. That's a great point. 536 00:17:41,160 --> 00:17:43,119 When you take those classic bones 537 00:17:43,119 --> 00:17:45,880 and inject modern amenities, you 538 00:17:45,880 --> 00:17:47,819 get a highly superior product. You 539 00:17:47,819 --> 00:17:49,619 get the fresh carpet smell and the 540 00:17:49,619 --> 00:17:51,200 modern Japanese head ritual, but 541 00:17:51,200 --> 00:17:52,619 you just have to accept that your 542 00:17:52,619 --> 00:17:54,539 departure date might require a little 543 00:17:54,539 --> 00:17:56,559 grace. Exactly. And when you look 544 00:17:56,559 --> 00:17:58,220 at all these moving pieces today, 545 00:17:58,640 --> 00:18:00,500 a fascinating picture emerges. It 546 00:18:00,500 --> 00:18:02,779 really does. Costa is pulling ships 547 00:18:02,779 --> 00:18:04,519 out of the Middle East because the 548 00:18:04,519 --> 00:18:06,299 geopolitical map is too complex. 549 00:18:06,940 --> 00:18:08,940 Portland and other ports are fundamentally 550 00:18:08,940 --> 00:18:10,460 increasing the cost of dropping. 551 00:18:10,509 --> 00:18:13,690 anchor, and P &O is pouring millions 552 00:18:13,690 --> 00:18:16,240 into a 2008 ship. to keep it highly 553 00:18:16,240 --> 00:18:18,059 profitable on a 35 -night route. 554 00:18:18,279 --> 00:18:20,059 It feels like the actual ocean and 555 00:18:20,059 --> 00:18:21,740 the ports of call are becoming the 556 00:18:21,740 --> 00:18:23,279 hostile elements of the vacation, 557 00:18:23,660 --> 00:18:25,400 while the ship itself is the heavily 558 00:18:25,400 --> 00:18:27,299 fortified, heavily polished safe 559 00:18:27,299 --> 00:18:29,099 haven. Which brings up a question 560 00:18:29,099 --> 00:18:30,480 for the listener to consider as 561 00:18:30,480 --> 00:18:33,039 they browse the shifting 2026 and 562 00:18:33,039 --> 00:18:35,660 2027 itineraries. As destinations 563 00:18:35,660 --> 00:18:37,480 become significantly more expensive 564 00:18:37,480 --> 00:18:39,279 due to tariffs and entire regions 565 00:18:39,279 --> 00:18:40,960 become impossible to navigate due 566 00:18:40,960 --> 00:18:43,019 to risk, will we reach a point where 567 00:18:43,019 --> 00:18:45,099 the massive, newly upgraded ship 568 00:18:45,099 --> 00:18:47,680 is a primary destination. Are we 569 00:18:47,680 --> 00:18:49,720 approaching an era where the actual 570 00:18:49,720 --> 00:18:51,720 ports on the itinerary are entirely 571 00:18:51,720 --> 00:18:53,160 secondary to the hardware you were 572 00:18:53,160 --> 00:18:54,839 sailing on? Something to think about 573 00:18:54,839 --> 00:18:56,519 the next time you are deciding between 574 00:18:56,519 --> 00:18:58,460 a ship with a new Japanese spa and 575 00:18:58,460 --> 00:19:00,140 an itinerary with expensive port 576 00:19:00,140 --> 00:19:03,759 fees. Thanks for listening to Cruise 577 00:19:03,759 --> 00:19:06,079 News. Visit CruiseNews .io to catch 578 00:19:06,079 --> 00:19:07,359 up on the latest updates and sign 579 00:19:07,359 --> 00:19:08,559 up for free email alerts.