Cruise Industry Moving to Smaller Ships

Build orders show reversal of decades-long trend Small-ship cruises may resume sooner than large ships

The cruise ship industry is moving toward smaller and more nimble vessels, according to industry reports. Data from Cruise Industry News show the average capacity of new cruise ships will shrink for the fifth straight year in 2020, reversing a 30-year trend of bigger and bigger ships. Meanwhile, more than 45% of ships on order during the next four years have combined passenger and crew capacities of less than 1300 people — the limit proposed in referenda going before Key West voters in November.

The data support what many observers have been saying for years: the era of the so-called Panamax class of super-ships is over. Jolly Benson, leader of the 2013 anti-dredging fight and vice president of the Committee for Safer, Cleaner Ships, says “Key West dodged a bullet when voters rejected dredging the ship channel in 2013. The industry said ships would get keep getting bigger. They threatened to stop coming to Key West if we didn’t dredge. But we called their bluff. And now they’re making smaller ships.”

The industry continues to be plagued by outbreaks of Covid-19 among crew members stranded on its ships since a “no-sail” order was issued by the U.S. Centers for Disease Control in March. A recent New York Times investigation found that 88% of all cruise ships that entered US waters after March 1 had Covid-19 onboard.

Small ships are thought to have a lower risk of infectious disease, and many think the CDC will lift the no-sail order in phases, starting with the smallest and safest ships first. In Australia, where Carnival Cruise Lines is under a homicide investigation, Craig Bowen, managing director of Cruise Traveller, says “there are definite indications that … small ship expedition cruising will be the first cruise sector to restart operations because of the smaller numbers of passengers involved and the sector’s ability to quickly and efficiently instigate new onboard Covid-19 health and safety protocols. Covid will continue to cause commercial pain but I believe our small ship industry will emerge from the crisis stronger than ever.” Bookings there for small-ship cruises are up more than 30% over last year, according to Cruise Industry News.

Local opponents of the referendum have argued that small ships will not come to Key West in significant numbers. Benson thinks otherwise. “Key West has been essential to Caribbean shipping routes since the days of the pirates,” he said. “The cruise lines need us a lot more than we need them.”

Sources:

  1. “Special Report, Orderbook Data 1988-2020.” Cruise Industry News, 2020.
  2. “The Post-Coronavirus Cruise? Not Ready to Sail.” New York Times, June 26, 2020. https://www.nytimes.com/2020/06/26/travel/coronavirus-cruises-reopening.html
  3. “Major cruise lines are paused, but small ships are revving up.” Travel Weekly. https://www.travelweekly.com/Cruise-Travel/Small-cruise-ships-are-revving-up-coronavirus
  4. “Travel Agent Says Small Ship Bookings Are Skyrocketing.” Cruise Industry News, June 30, 2020. https://www.cruiseindustrynews.com/cruise-news/23153-travel-agent-says-small-ship-bookings-are-skyrocketing.html
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