CRUISE SHIPPING & PORTS U.S. Ports See Silver Lining Despite Pandemic

Carnival has used the downtime to upgrade Port NOLA’s homeported Carnival Valor. Upon its return to Port NOLA, the Valor will be like a new vessel.

By Heather Ervin, Editor in Chief

Earlier this month, Port Canaveral in Florida marked a historic milestone in the safe, reliable transportation and delivery of liquefied natural gas (LNG) in

North America as the Q-LNG 4000, a cutting-edge ship-to-ship articulated tug and bunker barge (ATB), arrived at America’s first LNG cruise port.

What does that have to do with cruise ships exactly? The purpose-built ATB will operate in Port Canaveral providing LNG fuel to cruise vessels, notably to Carnival

Cruise Line’s LNG-powered Mardi Gras, which will homeport at Port Canaveral beginning this year. Built by Halter Marine for Shane Guidry’s Quality Liquefied Natural Gas Transport (Q-LNG), the ATB will carry enough supply of LNG to fuel two cruise ships, each for a seven-day itinerary.

“This project has been four years from concept to reality and we are excited to welcome the Q-LNG 4000 to fuel the next generation of cruise ships,” said Capt.

John Murray, CEO of the port. “We have been working closely with our cruise partners, all the federal and state regulatory agencies, and industry leaders to promote this industry initiative.”

The 4,000-cubic-meter barge, constructed in cooperation with LNG fuel supplier Shell Trading Company, arrived at Port Canaveral recently for a sailing and berthing familiarization exercise. The vessel docked at Port Canaveral’s newly constructed Cruise Terminal 3, which was completed in June 2020 but not yet welcomed its first cruise passenger, with the global shutdown of the cruise industry due to the COVID pandemic.

“LNG is the fuel of the future, it’s clean, less expensive and made right here in the United States,” said Canaveral Port Authority Commission Chairman Rear Adm. Wayne Justice (USCG, Ret.). “We are proud to be part of making this safe secure move to the future in this region.”

The U.S. built, owned and crewed ATB, comprising a 324 foot long barge and a 128-foot tug, is the first Jones Actcompliant ATB built in the U.S. that is specifically designed to conduct LNG cargo and bunker operations. When the ATB is conducting its ship-to-ship onwater bunkering process of a cruise vessel, it will take place during the ship’s passenger debarking and embarking processes, like conventional refueling operations, and last approximately six to eight hours.

“We are proud to deliver the Q-LNG 4000 to Port Canaveral,” said Chad Verret, President of Q-LNG Transport. “LNG is the marine fuel of the future, it’s domestically sourced and in abundant supply in the U.S. We look to supplying not only cruise ships but trading vessels in the future.”

The barge will load LNG from a fuel distribution facility on Elba Island, Ga., then return to Georgia to refuel after each LNG bunkering operation in Port Canaveral. The ATB has a carrying capacity of up to 4,000 cubic meters of LNG, the equivalent of 1 million gallons of fuel.

Additionally, the Q-LNG 4000 fueling operations will be supported while it’s in Port Canaveral by the port’s newly acquired fireboat, which arrived in January. The purpose-built Marine Firefighting Rescue Vessel will be operated by Canaveral Fire Rescue to provide enhanced fire protection and response capabilities to serve the expanding maritime and commercial space industry operations at the port.

The good news for cruise ports doesn’t stop in Port Canaveral, however.

Port of Galveston’s Hope for 2021

In December, newly released cruise industry economic impact numbers for 2019 showed that the resumption of cruising will play a critical role in helping drive the Port of

The Q-LNG 4000 will carry enough supply of LNG to fuel two cruise ships, each for a seven-day itinerary.

Galveston region’s economic recovery.

According to a recent report released by the Cruise Lines International Association (CLIA), the cruise industry generated $55.5 billion in economic activity in the United States, a 5.3% increase from 2018.

Moreover, growth in economic activity was accompanied by an increase in industry-supported jobs. According to the report, the cruise industry supported 436,600 American jobs paying $24.4 billion in wages in 2019—3.5% and 5.4% increases from 2018, respectively.

As the fourth most popular cruise port in North America and only cruise port in Texas, the Port of Galveston’s cruise activity contributed significantly to state and regional economies prior to the pandemic. The port saw growth in multiple areas related to its cruising activities, including direct expenditures, passenger embarkations, passenger and crew onshore visits, statewide wages, and more.

The port’s cruise business generates about 65% of the port’s annual revenue, allowing it to reinvest in business growth and infrastructure improvements to generate more jobs and economic benefits for the Galveston community.

These latest figures follow nearly 10 years of continued growth in the cruise industry, fueled by the rising popularity of cruise vacations. The report shows Galveston as one of the fastest growing cruise ports in the U.S. with embarkations more than doubled between 2012 and 2019.

More than 13.7 million passengers embarked on cruise ships from U.S. ports in 2019, up nearly 8% from 2018 and 26% from just five years ago.

But, of course, all of that has changed due to COVID.

While cruise operations remain suspended in the United States as a result of the pandemic, the Galveston Wharves is working with cruise industry leaders and local business and community partners for the safe, sustainable resumption of cruising in 2021.

The pandemic also impacted the schedule for the start of construction for a third cruise terminal. In 2020, Royal Caribbean asked for a one-year extension on its option to build a $100 million cruise terminal at the Port of Galveston.

The port said in January that it remains optimistic that plans will move forward and it will know the extension deadline by April.

Port NOLA Sees Downtime Improvements

While there is no doubt that COVID-19 has shuttered cruising operations around the world, the Port of New Orleans (Port NOLA) Market Manager Jessica Ragusa says that the cruise industry as a whole is proactively implementing significant public health protocols that will protect passengers once cruises resume.

“CLIA and its cruise line members have voluntarily developed a rigorous approach for the gradual return of cruises in the Americas,” said Ragusa. “The core elements of the protocols go beyond other sectors of the travel and tourism industry and includes testing 100% of passengers and crewmembers—a travel and tourism industry first.”

When the time comes, added Ragusa, Port NOLA and its tourism partners will be ready to welcome the resumption of cruise operations and are confident that New Orleans and Louisiana will still attract domestic and international visitors.

Meantime, Carnival has used the downtime to upgrade the port’s homeported Carnival Valor. Upon its return to Port NOLA, the Valor will be like a brand new vessel. The Carnival Glory and Carnival Valor docked at the Port of New Orleans

Inland River Cruises

River cruising is also popular in New Orleans and constitutes a growing segment of Port NOLA’s cruise business, according to Ragusa. American Cruise Lines plans to continue introducing modern riverboats to the domestic river cruise market every year. In 2020, American Cruise Lines introduced the American Jazz and American Melody on the Mississippi River. More are being constructed and will debut in 2022 and beyond.

There will soon be a new entrant to the Mississippi cruise market, Torstein Hagen’s Viking Cruises.

“We look forward to welcoming Viking Cruise Lines to New Orleans in 2022,” said Ragusa. “Viking’s arrival on the Mississippi River underscores New Orleans’ draw as a convenient cruise port and enduring tourism destination. With stops along the Mississippi River, Viking Cruises also represent the future commitment to tourism and economic development for many communities in Louisiana.”

Ragusa said that Viking estimates it will host more than 5,800 guests in the region in 2022. “For the first full-year season in 2023, Viking will bring an estimated 17,600-plus guests to the region for Mississippi River cruises,” she said.

The ship that will be operated by Viking is currently being built at Edison Chouest on Bayou LaFourche in Louisiana. It will hold 386 passengers, 150 crewmembers and costs $90 million. “Sailings for 2023 are already confirmed due to strength of 2022 bookings,” said Ragusa.

According to reports, Chouest will not only be building the vessel but, to ensure Jones Act compliance, will charter it to Viking and arrange U.S. crewing. The exact details of all have yet to emerge.