Cruise operators in Singapore are taking measures such as reducing sailing speeds, modifying routes, and discontinuing promotional offers in an effort to mitigate the effects of surging fuel prices triggered by the ongoing conflict in the Middle East. StarDream Cruises, which operates three vessels, disclosed that its operational expenses have increased primarily due to the global surge in fuel prices.
The company’s president, Michael Goh, noted that while there have been minor adjustments made in certain areas of their network, the Asia itineraries, including those stopping in Singapore, have generally remained steady. These changes, made as part of regular operational optimization, have been managed carefully to ensure that the overall guest experience remains unaffected.
In response to the escalating costs related to the Middle East conflict, StarDream Cruises announced a fuel surcharge of SGD15 (US$11.82) per person in March. The company has also implemented measures such as itinerary and route adjustments, speed management, and energy efficiency initiatives across its fleet.
Despite the rising fuel costs, international cruise arrivals to Singapore saw a 10% year-on-year increase in March, as stated by the Singapore Tourism Board. The board’s director of cruises, Chitra Rajesh Kumar, highlighted Indonesia, mainland China, and Malaysia as the top three source markets, with passenger numbers from these markets also seeing an increase.
The primary marine fuel used by cruise ships experienced a global price surge from approximately $550 per tonne in February to around $1,060 per tonne in March. As of May 5, the price stood at $975 per tonne. This has prompted some operators to revise their routes in response to the geopolitical situation and the energy crunch.
Several cruise operators have made similar moves, revising their schedules and routes to avoid areas of conflict and minimize exposure. For instance, Oceania Cruises has rerouted its ship Oceania Vista, originally set to transit the Suez Canal on a voyage from Singapore to Southampton in the United Kingdom, to now sail via Cape Town, South Africa, and up the continent’s west coast.
Despite the challenges, the demand for cruise holidays has proven resilient. The Singapore Tourism Board noted that the cruise industry has demonstrated resilience with steady bookings for future months. This continues to be supported by sustained global interest in cruising, the strength of regional source markets, and excellent air connectivity.
What measures have Singapore’s cruise operators taken to manage rising fuel costs?
Singapore’s cruise operators are reducing sailing speeds, modifying routes, and discontinuing promotional offers to manage the impact of rising fuel costs. They are also implementing energy efficiency initiatives across their fleets.
How has the increased fuel price affected the cruise industry?
While the price of marine fuel has significantly increased, the cruise industry has demonstrated resilience, maintaining steady bookings for future months. Cruise operators have adjusted their operations, such as rerouting ships and adding fuel surcharges, to manage these costs without significantly impacting the guests’ experience.
How is the demand for cruise holidays in the current climate?
The demand for cruise holidays remains strong, as indicated by steady advance bookings. The strength of regional source markets, sustained global interest in cruises, and excellent air connectivity contribute to this resilience. Despite the challenges, more travellers are exploring cruising as a convenient and value-driven option.
