Seatrade Cruise News is part of the Informa Markets Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

CRUISE NCL funnel.jpg
Cold layup is less costly but requires more time to being the ship back into service

NCLH compares cash burn per ship in cold versus warm layup

Norwegian Cruise Line Holdings estimated the monthly cash burn of a ship in cold layup as $2.8m, versus $3.9m in warm layup.

$70m compared to $110m

With its 28-ship fleet, that would mean a theoretical total of $70m in cold layup compared to $110m in warm layup.

The numbers include ship operating expenses and administrative operating expenses but not interest, maintenance capital expenditure, customer refunds or cash inflows from new or existing bookings.

Other differences

Warm layup entails a reduced level of crewing and assumes a reduction in regular fuel consumption, repairs/maintenance costs, shoreside salaries and benefits and advertising and promotions.

With cold (prolonged) layup the required crew complement is further reduced and there are greater savings on the other areas. It takes longer to bring a ship in cold layup back into service because, for one thing, it needs to be staffed up. 

NCLH did not specify how many of its ships are in either type of layup.

Hide comments
account-default-image

Comments

  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Publish