The new Cruise Ship Secondhand Market Report by Cruise Industry News is available for download, highlighting cruise ship transactions from 1983 to 2019, including secondhand sales, vessel withdrawals, charters and other deals.
The Cruise Ship Secondhand Market Report (1983-2019) presents a yearly account of known ship transactions (sales, charters, etc.), giving an overview of trends over the years. There is also an index of ship withdrawals, information on transaction values, estimated transaction values, estimated scrap prices and more.
The secondhand cruise ship market has generally been highlighted by two to three eight- to nine-figure transactions on an annual basis.
As the existing cruise fleet grows larger and ages, the secondhand market is expected to grow minimally, as the pool of qualified buyers is limited in scope.
Click here to learn more and download.
The secondhand market has changed over the past decade as the big cruise companies have consolidated the market, meaning there are fewer customers for their older and less efficient ships.
These vessels are also not equipped with the latest fuel-savings or emissions technologies.
With IMO 2020 regulations looming, limiting sulfur exhaust, vessels without exhaust gas cleaning technology will be forced to burn marine gas oil (MOG), which could see a price spike due to demand.
Recent transactions as of July 2019 include the sale of the Bremen to Scylla and the Silver Discoverer to CroisiEurope. Both are smaller, unique vessels. In addition, Royal Caribbean Cruises has sold the Pullmantur Zenith to Peaceboat, for a 2020 delivery.
Most vessel sales see ships enter markets the selling party does not generally serve.
Recent examples include the two-night cruise business, or smaller untapped regional markets such as India.
The general rule of thumb has been to expect a 30-year service life for a cruise ship with its original cruise line, but that timeline is now extending as ships continue to generate good income and there are few – if any – buyers around.
Another rule of thumb is a 15 percent residual value at 30 years, although that could change if there are capital-intensive refurbishment projects.
