Prolonged layups at Carnival

Carnival Corp has said that it expected to put the vast majority of its ships in prolonged layups during the global pause of its cruise operations brought about by the coronavirus pandemic.

During the layups the ships will be manned by a limited crew, at a cost of about $1m a month.

Carnival said that some of its ships would be put in a warm layup and would be manned by a full crew. For those vessels the cost per vessel would be between $2m and $3m a month.

Carnival said that it would decide whether a vessel  would go into warm or cold layup depending on the circumstances. It said that it expected the pause in global cruise shipping to be extended, and possibly prolonged.

Carnival said that “after transitioning to a prolonged pause, we anticipate estimated ongoing ship and administrative operating costs to range from $200m to $300m per month.

The company also believed that deliveries of its newbuild vessels would delayed. At the end of February Carnival had 16 cruise ships scheduled to be delivered between now and 2025, four of them in fiscal 2020. Carnival said that it believed that Covid-19 would result in delays in ship deliveries, which it could not predict and which could be prolonged.