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Fighting the perfect storm
Dealing with a deadly pandemic and war in Ukraine, marine industry shows resilience and remains hopeful for the future
picture: Pexels
Global plague, followed by the winds of war? The marine industry has had a rather unusual couple of years. For the most part, the industry is united in fighting COVID and condemning Russian aggression in Ukraine.
For example, as Russia invaded Ukraine
on now infamous 24th of February
2022, Cruise Lines International Association
(CLIA) wasted no time in expressing
its solidarity with the people of Ukraine.
CLIA also wowed to work with the organizations
across the maritime community,
including the International Labour Organization
(ILO), the International Maritime
Organization (IMO) and shipping associations,
to address challenges to the safety,
security, and well-being of seafarers as a
result of the conflict.
Also, Shipowners’ Associations –
among them, Finnish Shipowners’ Association
– have condemned the Russian
invasion. The Shipowners’ Associations
called the Russian Government’s decision
to invade Ukraine “appalling,” noting that
this act has serious consequences for the
people of Ukraine and must be stopped
immediately.
We call on Russia to cease the hostilities
and respect international law and
human rights, including the protection of
all affected seafarers and the protection of
lives at sea, the Shipowners’ Associations
urged in a joint statement.
DARK CLOUDS ABOVE
According to the Confederation of Finnish
Industries’ April 2022 Business Tendency
Survey, Finnish companies’ outlooks have
darkened in all the main sectors. The business
cycle is still favourable in manufacturing,
but is already declining in construction
and services.
Sami Pakarinen, Director at the Confederation
of Finnish Industries, observes
that Russia’s attack on Ukraine is reflected
especially in construction, where the situation
has deteriorated quickly.
Picture: Pixabay
“The availability of materials in particular
is now a major issue, and it is also a
significant problem in manufacturing. Even
though there still is ample demand in many
areas, uncertainty about the future combined
with a strong rise in costs is making the operating environment significantly
more difficult also for Finnish companies,”
says Pakarinen.
FAREWELL TO COVID, FINALLY?
Dealing with the aftermath of the pandemic,
however, is showing some light at
the end of the tunnel. CLIA states that its
science-backed protocols have facilitated
the resumption of cruise operations, with
over 7.5 million passengers having sailed
in nearly 90 markets.
Kelly Craighead, President and CEO,
CLIA, stated in April that as the industry
resumes operations, passenger volume
is expected to recover and surpass 2019
levels
by the end of 2023, with passenger
volumes projected to recover 12%
above pre-pandemic levels by the end of
2026.
CLIA’s consumer research shows that
the intent to go on a cruise is rebounding,
with 63% of cruisers or potential cruisers
indicating they are ‘very likely’ or ‘likely’
to cruise in the next two years. 69% of
respondents that have never cruised said
they are open to cruise, exceeding prepandemic
levels.
Generation Y seems to be driving the
reboot, as millennial cruisers are the most
enthusiastic about taking another cruise,
with 87% indicating they will take a cruise
in the next few years, followed by Gen X
at 85%.
GRACE UNDER FIRE
In Finland, leading shipyard Meyer Turku
has been able to cope amidst tough times.
The company’s turnover for 2021 was EUR
1.08 billion which was somewhat higher
than in the previous year – but, of course,
2020 was marred with COVID.
CEO Tim Meyer commented the
financial results in May, admitting that
exceptional times lasted longer than
expected.
“The global effects of the COVID-
19 pandemic, such as labor and material
mobility, affected our operations as well.
However, despite significant challenges, we were able to keep our production and processes
running,” says Meyer.
Picture: Pixabay
ORDERBOOK STILL SOLID
In the spring of 2021, for example, the
company launched a major transformation
program in Turku and Papenburg, Germany,
to increase its cost efficiency and
to ensure a sustainable profitability level.
“Our customers see growth in the
market after the pandemic, and our shipyard’s
order books extend to 2026,” Meyer
says, adding that today, society, customers
and ship passengers all require action to
enhance responsibility.
“Our focus will increasingly shift to
sustainable shipbuilding.”
The Turku Shipyard has kept its head
to the grindstone, handing over Costa Toscana
to Costa Crociere in December 2021
and now continuing work on Carnival
Celebration (to be delivered by the end of
2022). Next up in the pipeline: Royal Caribbean
International’s Icon of The Seas in
2023 and the TUI Cruises’ Mein Schiff 7
in 2024.
by Sami J. Anteroinen
Beyond the Covid/Ukraine double crisis:
cutting carbon, supporting lifecycle
Cruise Lines International Association‘s
(CLIA) ocean-going members are
committed to pursuing net-zero carbon
cruising by 2050. In addition, by 2035 all
ships calling at ports where shoreside electricity
(SSE) is available will be equipped to
use SSE, allowing engines to be switched
off, thus effectively eliminating carbon
emissions while berthed at port. Where
shoreside power is not available, the ships
will use available alternative low carbon
technologies required by ports.
According to CLIA, the industry
is acting now for the future. The cruise
lines are reducing the carbon footprint of
their ships while at berth and at sea and
investing
in advanced environmental technologies
while partnering with cities and
ports on sustainable destination management.
By equipping cruise ships with the
ability to connect shoreside electricity and
using it where available, the cruise industry
is prepared to eliminate emissions while
at port for the benefit of local communities.
This is responsible tourism in action,
notes CLIA.
Sustainable ways are finding root
in other areas, as well. In Europe, Meyer
Group is making its business more circular.
In cooperation with shipping companies,
the newly established subsidiary by
the name of MEYER RE aims to maintain
and modernize the vessels throughout
their service life and to ensure the optimization
of the vessels’ operations.
According to the ship-maker, significant
benefits and added value will
accrue to customers when ship products
are supported throughout their life. In the
future, Meyer Group’s customers will be
able to benefit from the shipyards’ extensive
know-how in this way, as well, and
will make a significant contribution to
maintaining the responsibility and value
of ships.
Jan Meyer, CEO of Meyer Werft, says
that MEYER RE is a new way to land extra
work and orders for the Group’s shipyards
and companies.
“The ships we renovate will be more
attractive and responsible as products,”
Jan Meyer says, calling MEYER RE an
“important building block” for the German
family company’s future.
MEYER RE will focus on ship refurbishment,
including cabin deliveries, engineering
services (e.g. ship energy management
systems) and the conversion of ships
to renewable fuels.
