Challenges and Solutions in 2017 Cruise Market

Image Courtesy: GE’s Marine Solutions

China’s rapid economic evolution has attracted more people to leisure travel opportunities and the number of Chinese passengers is expected to reach 4.5 million by 2020, representing more than 20 percent of today’s global cruise passengers, according to GE’s Marine Solutions.

Some 130 million Chinese citizens travel internationally, making China the world’s largest outbound travel market in the world. In addition to relaxed visa rules, China is set to accommodate more foreign visitors from cruise vessels.

Cruise shipbuilding is developing in parallel, signalled by the move made by cruise giant Carnival Corporation, which recently signed a joint venture agreement to design and build two cruise ships with the China State Shipbuilding Corporation (CSSC) and Fincantieri. These will be the first ships ever to be built in China for the Chinese market and will be tailored to meet the needs of Chinese travelers.

In 2017, as the cruise market evolves, a number of industry changes and considerations are coming to bear.

Advanced technology leading the way

The attraction of going off the beaten track has given rise to the expeditionary travel market. Many of these adventure holidays involve a cruise element, and this growing sector, with demand for smaller vessels, is impacting the industry. At the other end of the market, there is growth in very high-capacity, high-specification vessels for the luxury experience.

Whatever end of the cruise sector, space on board ships is always at a premium; more cabin and facilities space means higher revenue potential. Therefore, power-dense engines, propulsion motors and power electronics with a reduced footprint are the preferred choice for ship owners and operators. GE’s compact, COmbined Gas turbine Electric and Steam (COGES) propulsion system can help save valuable space on board.

Enhanced manoeuvrability is also particularly important for cruise ships.

Clean sailing through strict regulation

Following the COP21 Paris Agreement, emissions reduction has been high on the agenda for every industry. In fact, the marine industry as a whole is responsible for about 2.5 percent of global greenhouse gas emissions.

In an effort to curb emissions, various governmental organizations around the world are introducing strict regulations, which are set to impact maritime operations. In the European Union (EU), for example, new regulations come into force in 2017 requiring any large vessel docking at an EU port to monitor and report its CO2 emissions. In China, the government is creating emission control areas at major shipping ports, introducing a sulphur cap at 0.5 percent, ahead of the global IMO 2020 regulations.

To adhere to these regulations, marine operators need to rethink the most fundamental aspects of their operating models—how they consider everything from vessel design to vessel management to fuel choice and maintenance—to be compliant with the environmental regulations. New technologies can incur costs from development and upgrades, but also can bring efficiencies that lead to a fast return on investment and strengthen a market position for operators.

Along the green wave, alternative clean fuel, such as LNG, will become a more predominant marine fuel. The move is typified by Carnival Corporation, which has three LNG-powered cruise ships on order.

Riding the crest of the digital wave

Booming demand is also incentivizing the cruise industry to dip into digital waters to further raise efficiency and ensure a smooth journey for passengers.

Unplanned downtime for any cruise line can cause interruptions to passengers’ journeys, loss of revenues and potential brand damage. However, analytic tools can predict an equipment’s potential failure before it becomes an operational disruption, reducing downtime and more crucially, avoiding disruptions during the voyage. This predictivity can also enable a shift from calendar- to condition-based maintenance, further reducing maintenance cost.

Digital technology can also help improve fuel efficiency by analyzing weather conditions and current to optimize propulsion rate and speed. Furthermore, it can help operators make smart decisions to change to use cleaner fuels on the course of the route, depending on the speed needed, further curbing emissions and cost of fuel.

“As the demand for cruise holidays soars, fleets continue to grow. While stringent regulations and new destinations may provide new challenges, they bring with them a host of opportunities. New regulations will push operators towards more efficient operations with reduced carbon footprint, while new destinations open up new revenue streams. By using the right technology—green and digital—operators are sailing in the right direction to capitalize on the opportunities in 2017 as well as those further on the horizon,” GE’s Marine Solutions said.

Share this article

Follow World Maritime News

In Depth>

Events>

<< Mar 2017 >>
MTWTFSS
27 28 1 2 3 4 5
6 7 8 9 10 11 12
13 14 15 16 17 18 19
20 21 22 23 24 25 26
27 28 29 30 31 1 2

Breakbulk Europe 2017

For more than a decade, Breakbulk Europe has served as the networking hub for industry professionals who do business in Europe — or would like to! Exhibitors and sponsors include cargo owners, ocean carriers, freight forwarders, ports/terminals, heavy haulers, equipment companies and more that are involved in this specialized industry.

In addition to exceptional networking opportunities, Breakbulk Europe provides a dynamic conference, along with a range of educational and training workshops — intensive all-day classes held the day before the exhibition opens as well as many on-the-floor sessions.

  • Over 7,600 participants attended Breakbulk Europe 2016
  • Meet with over 400 exhibitors and sponsors
  • Hear from industry experts, including leading shippers, during the conference sessions
  • Learn new skills in the educational workshops held before the exhibition and on-the-floor micro-seminars and exhibitor-led sessions during the event

More info

read more >

Ferries Asia Summit

Propelling Regional Waterway Connectivity & Fleet-wide Operational Excellence

Ferry travel is in the limelight. The potential for driving tourism growth is immense – and for archipelago nations battling with urban congestion, ferry services pose a clean, efficient alternative in everyday public transport. But high-profile ferry accidents have brought ever greater attention to safety regulations for Asia’s maritime travel industry.

Amid these circumstances, how can vessel operators cope with ever-tightening safety requirements, while making the right decisions at the right time to capture rising demand? What are the smartest ways to improve service reliability and fleet quality, that maximize operating and capital spend? What are the industry’s best-practices for sustainable growth, and how can they be achieved?

Play your part! Join us at the Ferries Asia Summit 2017 to push forward the regional debate on making Asia’s ferry industry more progressive, safe, and commercially sustainable. Bringing together fast-ferry, RO-RO and ROPAX vessel owners along with international and domestic maritime regulators, classification agencies, shipbuilders and naval architects, this event connects the entire value chain for a meaningful holistic debate on ferry operations excellence in Asia.

WHAT’S ON THE AGENDA THIS YEAR?

Comprehensive debates on addressing the complexity of ferry safety in Asia: Is vessel age truly the greatest concern? How significant are other factors, and how can they be addressed?

Pathways to change through greater public-private collaboration

Contrasting viewpoints on the most effective ways to enhance operational stability & passenger management

Cost-efficient O&M strategies to extend vessel life & tips for stakeholder management to avoid purchasing mistakes

Integrating ferry business with tourism opportunities through strategic partnerships

Exciting formats including speed networking, panel discussions & a high-intensity fast-pitch ‘Shark Tank’!

For more information, click here to download the brochure.
If you would like to attend the event, register here before 3rd February to save USD 400.
Alternatively, email us at enquiry@iqpc.com.sg 
for any enquiries regarding the event.

More info

read more >

INMEX Vietnam 2017

The event is an exceptional meeting point for the global maritime community in Vietnam, a region where the industry remains buoyant and strong…

read more >

Singapore Maritime Week 2017

Singapore Maritime Week (SMW) is the leading maritime event in Singapore. Driven by the Maritime and Port Authority of Singapore (MPA), SMW…

read more >