Cruise Lines and oil prices

A drop in oil prices leads to drops in fuel costs to many industries. Some pass that on to consumers some don't. You probably have more money to spend because gas prices have dropped. That extra money in your pocket can now be spent on other things like, Clothes, Cars, and Cruises! So a drop in the oil price could end up increasing the demand for cruises. And we all know (well all the students in my Economics class know - I hope.;)) when demand goes up vs. supply - prices go up. So it could be :( for your hopes for a price drop. Sorry.

Some (many ?) cruise lines have shortened the time spent in many ports so they can sail slower and burn less fuel getting to the next port. Some of the port calls have been shortened significantly.

 

 

 

Can you give some before/after examples, I haven't noticed this...

Can you give some before/after examples, I haven't noticed this...

 

HAL used to leave HMC headed back to FLL at about 4:00. It's more like 2:30 now. We have noticed it in a lot of Caribbean ports including San Juan, St. Maarten, Cozumel........

 

Can you give some before/after examples, I haven't noticed this...

 

HAL used to leave HMC headed back to FLL at about 4:00. It's more like 2:30 now. We have noticed it in a lot of Caribbean ports including San Juan, St. Maarten, Cozumel........

 

It really depends on the cruise. We just spend 15 days on Statendam sailing Lima Peru to San Diego. Much of the sailing time was at 17 knots or above. Only one or two overnight sailings was it under 14 knots.

So what is your point? That we should all feel guilty for the pollution generated on our cruises? :confused::confused:

 

Feel guilty if it makes you feel good.. I just felt it was interesting. Right now I feel like saying,, happy guilt free or guilty cruising, which ever you choose.

Feel guilty if it makes you feel good.. I just felt it was interesting. Right now I feel like saying,, happy guilt free or guilty cruising, which ever you choose.

 

:D I was wondering the same thing about that comment. Some people around here unfortunately ASSUME too much. And you know what they say about assuming things......?;)

 

Oh well, just par for the course here at CC. And speaking of golf and golf courses, do you know how much water and pesticides those things use? :D

 

Happy cruising ....... and golfing!

Many companies also Hedge against increasing fuel costs by locking into pricing which in the current scenario may not be allowing them to take full advantage of the unexpected drop in fuel prices.

Carnival took a big charge against their fuel derivatives in the fourth quarter - I read this as being that the value of their fuel contracts fell due to the oil price plunge. The derivatives are accounted at market value. It's a good thing to have a lot of contracts locked in when prices are rising; not so much when prices are falling.

Carnival took a big charge against their fuel derivatives in the fourth quarter - I read this as being that the value of their fuel contracts fell due to the oil price plunge. The derivatives are accounted at market value. It's a good thing to have a lot of contracts locked in when prices are rising; not so much when prices are falling.

 

We are going to see a whole lot of crazy looking GAAP net income figures coming from the other cruise lines, the airlines, the shipping companies like FedEx. Basically anyone how has hedged their oil/fuel costs. On the other side we are also going to see just as crazy GAAP numbers from the oil producers who have hedged at higher than the current market price. It's going to be a wacky earning season this year.:eek:

 

The good thing for Carnival was despite the GAAP net loss in the fourth quarter, their Cash Flow was significantly higher. And you pay your employees, suppliers, debt holders and equity holders with cash, not GAAP accounting profits, or lack thereof. :D

Edited December 20, 2014 by DirtyDawg