Study: Cruise Industry Leads in Environmental Performance

By Mark Edward Nero

The cruise industry is a leader in the development of innovative technologies, the reduction of air emissions and wastewater treatment practices, according to a new study released March 30 by Cruise Lines International Association (CLIA).

The study provides the first-ever wide-ranging analysis by independent maritime environmental experts of the cruise industry’s environmental practices and performance. It found that with both air emissions and wastewater treatment practices, CLIA members are leaders in the global commercial maritime sector in the development of innovative technologies to advance environmental stewardship. It also found that CLIA members lead in the development of industry policies and best practices that increase positive environmental performance, and that although cruise ships represent less than one percent of the global commercial maritime fleet, the industry’s actions have substantially contributed to the maritime community’s initiatives in environmental stewardship.

The detailed study, which was commissioned by CLIA and prepared by Energy and Environmental Research Associates, LLC, (EERA) analyzed the practices and performance of the CLIA members’ global fleet of about 300 ocean-going cruise ships, as well as the industry’s investment in technological innovation aboard newly built ships in its growing fleet.

When comparing the level of emissions from all commercial shipping vessels at ports where cruise ships visit in the US and Europe, the study found that the at-berth emissions of cruise ships account for only three percent and 1.2 percent of all emissions within those ports in the US and Europe, respectively.

Overall, EERA found that CLIA members meet or exceed international air emission requirements and are leaders in the maritime sector in adopting cleaner fuels, controlling air emissions and preparing vessels to connect to shore-based energy systems.

Technologies and best practices identified in the EERA report include:

• Systems to reduce air emissions from exhaust stacks, including, as one example, advanced exhaust gas cleaning systems to reduce sulfur oxide and particulate matter.

• The use of shore power where available, and noting that CLIA members’ use of advancements in alternative fuels and emissions abatement technologies could reduce the need for investment in additional shore power in the future.

• Fuel switching to lower sulfur fuel before entering an emission control area, if other methods of emissions abatement aren’t otherwise available on a cruise ship.

• Investment in the use of alternative fuels such as liquefied natural gas, with an increasing number of new build orders for LNG-fueled ships.

The full report can be read and downloaded at http://cruising.org/docs/default-source/research/environment-research-2017.pdf.

CLIA: 24 Million Cruise Passengers in 2016

By Mark Edward Nero

Nearly 24 million cruise passengers are expected to sail in 2016, an increase from the estimated 23 million people who took a cruise in 2015 and the 22.1 million passengers of 2014, according to a report released Dec. 1 by the Cruise Lines International Association.

The number of projected passengers is a significant jump from the 15 million passengers 10 years prior, according to CLIA’s 2016 State of the Cruise Industry Outlook.

According to the outlook, CLIA member cruise lines are scheduled to debut 27 new ocean, river and specialty ships in 2016, for a total investment of more than $6.5 billion in new ocean vessels alone. Travel agents are also experiencing a higher demand for cruise travel, according to the outlook. Eight out of ten CLIA member travel agents said they’re expecting a sales increase in 2016 over this year.

“In an effort to make cruising the best overall vacation experience available, the industry is continuing to evolve,” Acting CLIA CEO Cindy D’Aoust said in a prepared statement. “By creating unique ships, new experiences and access to destinations around the world, the evolution, appeal and value of cruise travel continues to drive the overall growth of the industry.”

Cruise industry expenditures generated nearly $120 billion in total output worldwide last year, supporting 939,232 full-time equivalent employees who earned $39.3 billion in income in 2014, according to CLIA.

Among the current trends cited in the outlook are the growing popularity of river cruises; a 34 percent annual passenger volume growth rate in Asia; and an increase in overnight stays at ports of call.

More information on the outlook can be found at http://www.cruising.org/docs/default-source/press-room-research/clia_sotci_infog_2016.pdf

Cruise Association President Quits

By Mark Edward Nero

After only about a month on the job, the president and CEO of the Cruise Lines International Association is parting ways with the organization.

Thomas Ostebo, who joined CLIA as President and CEO on July 6, has stepped down from the position, effective immediately, due to personal reasons, the cruise association revealed on Aug. 12.

“While it is unfortunate that Tom is departing CLIA, his desire to put his family first is a testament to his character, and we wish him the best in all his future endeavors,” Global CLIA Chairman Adam Goldstein, President and COO of Royal Caribbean Cruises Ltd., said in a prepared statement announcing the surprise development.

Cindy D’Aoust, Executive Vice President of Membership and Operations, was named acting CEO and interim overseer of the management of global operations and the CLIA leadership teams until CLIA appoints a permanent CEO.

The new CEO will be the third in 2015 alone. Ostebo’s appointment followed the January 2015 departure of former CLIA President and CEO Christine Duffy who took over as president of Carnival Cruise Line on Feb. 1.

Ostebo came to CLIA from the US Coast Guard, where he served as a Rear Admiral. Most recently, he was Director of Strategic Management for the USCG, where he supported strategy and budget policy. He also served as Commander for the Coast Guard 17th District.

Ex-Admiral to Head Cruise Lines Association

By Mark Edward Nero

Thomas P. Ostebo is joining the Cruise Lines International Association as President and Chief Executive Officer effective July 6, the organization said May 20.

His appointment follows the January 2015 departure of former CLIA President and Chief Executive Officer Christine Duffy.

Ostebo, who was selected by CLIA’s Global Executive Committee, is expected to oversee CLIA operations both domestically and internationally, working directly with his senior leadership team to execute the organization’s vision.

Ostebo has more than 30 years of experience leading large and complex organizations. He joins CLIA from the United States Coast Guard, where he served as a Rear Admiral. Most recently, he was Director of Strategic Management for the USCG, where he supported strategy and budget policy. He also served as Commander for the Coast Guard 17th District.

“Tom brings years of outstanding maritime and strategic business leadership experience to this important position that leads the cruise industry’s global association.” Global CLIA Chairman, Adam Goldstein said.

In his new role, Ostebo will lead CLIA’s work to help all its members succeed and unify, represent, advocate and promote the common interests of the global cruise industry. He’ll be located at CLIA global headquarters in Washington D.C., and work with CLIA’s 15 offices across the globe, including those in Alaska and elsewhere in North America.

“This appointment is a perfect next step in my career as it allows me to leverage my experiences and passions, from leading large complex teams to advocating for marine resources,” Ostebo said.