PortMiami has been especially hard hit by the ongoing suspension by the cruise industry. The port, which has long positioned itself as the cruise capital of the world, has been working to support the cruise industry while counting on its cargo operations to supply income to the port during this period.
According to reports in the Miami Herald, PortMiami earns upwards of $35 billion from its cargo business. The port, however, has implemented cost cutting measures to help it manage in the current business climate. So far, the Miami Herald reports the port has not had to draw on its financial reserves.
Starting on March 13, 2020, PortMiami in an effort to support the cruise industry announced a 30-day waiver of all lay berth fees for PortMiami’s home-ported vessels. The waiver in fees has cost the port more than $8 million so far. No one has fully calculated the lost revenues from the more than 6 million passengers that were expected to pass through the port this fiscal year, many of whom would have also stayed in hotels, shopped and gone to bars and restaurants as well as taken tours and visited to tourist attractions.
Initially, the cruise ships were using the port as part of their efforts to conduct repatriation flights for the crew members on chartered flights from Miami International Airport. While regulations from the Centers for Disease Control later prevented the crew from disembarking, PortMiami continues to provide dock space. The cruise ships have used the port for necessary replenishment efforts as well as for lay-up berths.
Recently, Miami-Dade Mayor Carlos A. Gimenez announced that the port will again extend the waiver of lay berth and harbor fees for an additional 30 days. Currently, it has been extended through August 11, 2020, subject to availability at PortMiami. The time period for the waiver can be amended at the sole discretion of Miami-Dade County, as needed.
“Our partnership with the cruise industry is stronger than ever, and we will continue to offer our support,” said Mayor Gimenez.
While the port has been able to assist the cruise lines with dock spaces, a larger issue has also been under discussion which is the long-term construction programs the port was undertaking with the cruise lines to create modern terminals to accommodate the new cruise ships. The more dated facilities were being replaced with elaborate signature designs and new facilities able to handle the largest ships.
Norwegian Cruise Line was working to complete construction on its new terminal which had been delayed from an originally anticipated opening in late 2019. In addition, PortMiami had entered into agreements with Virgin Voyages and MSC Cruises for new terminals. The port and Carnival Corporation had also agreed to plans to renovate the existing terminals used by Carnival Cruise Line.
The cruise suspension and the cost of the terminals, however, are leading to revisions to these plans. Discussions are reportedly ongoing with each of the cruise lines for revisions to the commitments, revenue agreements, and scope of the projects.
In April 2019, MSC and Miami completed an agreement for MSC Cruises to design, construct, operate and maintain a large building that would host two cruise terminals allowing the company to conduct two turnaround operations simultaneously. The terminals were designed to handle up to 28,000 passenger movements per day. MSC was reportedly investing more than $300 million in the project. PortMiami has recently agreed to give MSC extensions to arrange the financing and now the port told the local commissioners that terms of the agreement are also being revised for the land lease and future revenues.
In a surprise move, the PortMiami and MSC Cruises also agreed to share the project with Disney Cruise Line. Typically each of the cruise lines was seeking sole use of the new terminals which were being built to their individualized designs. PortMiami and Disney had been exploring plans for a new terminal on the south side of Dodge Island, but by combining Disney into the MSC plans it will reduce the financial commitments for both cruise lines as well as saving the port costs associated with the construction of another terminal. While the terms of the agreements vary by cruise line, PortMiami typically incurs costs in preparing the sites as well as potential infrastructure improvements.
At the western end of Dodge Island work has already begun to clear the site for the new Virgin Voyages terminal that featured a fanciful tropical design in keeping with the spirit of the new cruise line. The port recently told the local commissioners that discussions are underway looking both at ways to create cost savings as well as revisions to the terms of the agreement.
Terms of the agreements with both Norwegian Cruise Line and Carnival Corporation are also likely to be revised as PortMiami continues to work with its cruise line partners.
Go to Source
A massive fire broke out at the Port of Beirut on Thursday, incinerating a warehouse full of tires and oil within the port’s free zone. The same area was heavily damaged in the ammonium nitrate explosion that leveled the central port area and the adjacent waterfront on August 4. According to Lebanon’s civil defense agency, […]
Over the course of the past five days, the Australian Maritime Safety Authority arranged a medical intervention for an injured aboard a freighter in the Indian Ocean. On Saturday evening, the Spliethoff tweendecker Dolfijngracht called for assistance while under way about 1,000 nauical miles off the coast of Western Australia. A crewmember had sustained serious […]
The National Transportation Safety Board (NTSB) has released a Marine Accident Brief about an accident that occurred on April 15, 2019, involving the towing vessel DeJeanne Maria which struck the end of a submerged dredge pipeline while pushing two spud barges to the Gulf of Mexico. The incident occurred on the Mississippi River in Pass […]
Best known as a leading passenger airport serving Germany’s most populated federal state North Rhine-Westphalia, Düsseldorf has become transformed into a vital distribution point, during the COVID 19 pandemic, for medical equipment and other life-saving goods, mostly from China. Gerton Hulsman, managing director of cargo operations, reports that the handling teams are working hard to […]
With close to 100 daily cargo flights operated to a destination network spanning more than 65 cities across six continents, Emirates SkyCargo is delivering essential supplies and commodities to people around the world. The air cargo carrier is currently operating 11 Boeing 777 freighter aircraft, each with a capacity to transport about 100 tonnes of […]
The UK government’s new post-Brexit tariff regime will result in both winners and losers. The new regime is set to replace the European Union’s Common External Tariff from the end of the Brexit Transition Period on December 31, 2020. The UK’s commitment to the ongoing Brexit process and ending the UK’s transition from EU membership […]
DSV Belgium has solid experience in the transport of pharmaceutical products for different customers. With a pharma hub based at Brussels Airport a lot of experience and know-how has been built up over the years. Last weekend, the forwarder handled one hundred million mouth masks, an important milestone for its Belgian organisation that has put […]
Emirates SkyCargo has expanded its weekly scheduled cargo flight operations to cover 75 destinations across six continents. Through its wider reach, Emirates SkyCargo is able to transport essential commodities and other urgently needed cargo more rapidly across the world, allowing exporters and importers across markets to benefit from direct access to widebody cargo capacity. Some […]
Global commercial aviation charter company Albion Aviation Group is reporting that it is seeing a considerable uptake in its professional cargo broker training courses from the current global pandemic crisis and surge in charter demand. “We have completed a number webinar courses for a whole of host of companies, looking to manage their own cargo […]
Operators can continue to use pilots and other crew members who have unable to comply with certain training, recent experience, testing, and checking requirements due to the COVID-19 outbreak in support of essential operations. Additionally, this Special Federal Aviation Regulation (SFAR) provides regulatory relief to certain persons and pilot schools unable to meet duration and […]
Astral Aviation has increased its intra-African network with cargo freighters during the pandemic. While there has been a reduction in capacity to, from, and within Africa, which has been caused by a stoppage of passenger flights and limited frequencies on freighter aircraft, Astral Aviation continues to operate cargo freighters from its Nairobi hub to 13 destinations […]
The U-Freight Group (UFL), with its considerable involvement in eCommerce logistics, says that the latest statistics showing that global e-commerce sales hit $25.6 trillion in 2018 are a further vindication of its decision to enter this sector of the international freight market several years ago. The latest available estimates, up 8% from 2017, were recently […]
Callan Marine is serving as the prime contractor to the Texas Department of Transportation for a maintenance dredging project located at the Bolivar Ferry Terminal, in Galveston, Texas. Work began in May and is estimated to be complete in late July 2020. The project consists of the removal of 600,000 cubic yards of material and […]
Network Airline Management and TAAG Angola Airlines are pleased to announce the renewal of their long-term freighter aircraft contract by an additional 12 months, sealing an ongoing partnership for the foreseeable future. Operating a regular weekly scheduled service from Liege, Belgium, to the capital of Angola, Luanda, Network Airline Management provides a Boeing 747-400F aircraft […]
Qatar Airways Cargo transported 56 SkyCell containers with vaccines from one of the largest vaccine manufacturers worldwide on its scheduled freighter and belly-hold cargo flights for its customer, CEVA Logistics. The 54-tonne shipment consisting of pneumococcal and varicella vaccines were flown from Brussels to Mumbai via the carrier’s hub in Doha on two separate flights. […]
NOAA Fisheries announced Friday that it will cancel five out of its six large-scale research surveys in Alaskan waters this year due to COVID-19. The canceled surveys include the Aleutian Islands bottom trawl survey, the eastern Bering Sea bottom trawl survey, the northern Bering Sea bottom trawl survey, the Bering Sea pollock acoustics survey, and […]