MSC Cruises has come up with the ideal solution for cruising with a friend by offering cruises for £1 when one adult orders a full price Mediterranean cruise for 2011. The deal is on condition that the two share a cabin and that the booking is made by May 10th , 2010.

Standard prices are £299 for three nights and £799 for seven or 11 nights. Though flights are not included in the £1 offer, they are still bookable through MSC along with a whole range of add-ons such as hotels, spas and drinks packages contributing to the experience.

MSC has 11 state of the art vessels with flagships Fantasia and Splendida being considered “the ultimate experience” with pools, a 4D cinema and a multitude of bars and restaurants to enjoy, whilst the more compact Musica and Lirica class, offer much the same facilities, but in a more intimate environment, designed for ‘first-time’ cruisers

SMI TV talks to Naples’ shipowners about what the crisis holds for the shipping industry.

Dubai Maritime City is to organise the ‘Dubai Maritime Week’ starting from 2010, as part of a series of initiatives designed to support the development of the UAE and region’s maritime sector.

The region’s first-of-its-kind event will be co-organised by Dubai World Trade Centre and will include seminars, exhibitions, panel discussions and conferences relating to the global maritime industry. In addition, activities that allow Dubai’s entire community to participate will also be a feature of the week, including maritime themed photography exhibitions, boat racing and more.

“Through this initiative, we hope to showcase Dubai as the venue-of-choice for maritime events and business networking; facilitating intellectual and effective discussions on maritime-related issues to promote advancement within this vital Middle Eastern industry,” said Ali Al Daboos, Deputy CEO of Dubai Maritime City Authority.

Indian shipping companies have indicated that not only have they been unaffected by the global credit crisis, but that it is a “blessing in disguise” for the Indian economy as it uses the period of downturn to shift attention on internal development and growth.

Managing Director of Bibby Ship Management’s Mumbai office, Prakash Agarwal said that in stark contrast with the majority of global shipping operations, India is acting positively against the world recession by using the time to invest in much-needed infrastructure and “to focus on and balance its own economy”.

He added: “India’s growth is not depending on external factors, it is the internal factors that are influencing it, a growth in its own stealth. Macro economics are not relevant at this time as exportation from India will continue. It will use the capacity of this period to build up its own industry,” Mr Agarwal said.

“India has not been affected at all. The slowdown might also bridge the gap between the previous shortage of workers and competent and qualified officers. There is likely to be concentration of better quality crew as a result, and where maintenance costs of ships were previously high because of poorly qualified crew, the maintenance costs for shipowners will be brought down by better quality crew,” he added.

Sandeep Mehta, CEO of India’s new and extensive development project, Mundra Port & Special Economic Zone, emphasised that despite the global downturn, India has not been affected, but it needs investment into infrastructure

“Now is the time to build. India is becoming a significant part of the global economy and it is important to invest for long-term benefit. The shipping industry is cyclical, and the current climate is not of any concern as it is providing other opportunities for internal development projects,” he added.

Currently undergoing some extensive schemes, India seems to be approaching the world economic situation with proactive and forward-thinking optimism. The Pipavav Shipyard expansion scheme also demonstrates its indifference to the credit crunch, as CEO Ray Stewart asserted.

“We have seen no order cancellations in India - there is still a large demand for newbuilds, and in a way it is like a cloud with a silver lining. It is a positive thing for India because it means that engines and machinery become available, allowing investment in infrastructure,” Mr Stewart said.

Shipmanagement companies and operators are maintaining the notion that while the market is in a period of downturn, it will return, and the situation has offered a window of opportunity for some imperative infrastructure for India as it focuses on longer term investment and crucial economic growth.

DVB bank has warned that frozen credit lines may force banks to take ownership of vessels as financing becomes increasingly tighter, indicating that shipowners and operators should cut their losses against the future world newbuild orderbook.

Dagfinn Lunde, Member of the Board of Managing Directors of DVB Bank, said that as a result of the global economic crisis, it is “likely that banks will be taking ownership of vessels they have mortgages on.” As world trade finance activities are frozen, Mr Lunde stressed that “the biggest concern is the huge newbuilding orderbook.”

“Those owners who can avoid taking deliveries in 2009 and 2010 at the cost of losing some money are in better position. All shipyards will have to tighten their belts as it will be a big hit for them. The hope is that a big part of the present orderbook will never be built,” he added.

Mr Lunde indicated that there is significant concern over the future of the shipping industry due to the near-impossibility of obtaining a bank loan, and because charter rates and vessel values have hit rock bottom despite operating expenses staying the same.

“Several shipowners have had their vessels idling for weeks waiting for cargo, and others have had to lay-up their tonnage – but with new deliveries, the situation will worsen,”
Mr Lunde said. “The other problem is falling commodity demand and hence falling commodity prices due to a global economic slowdown affecting more and more countries,” he added.

As the future economic climate remains bleak, DVB has advised against shipowners and operators taking delivery of newbuild vessels over the coming years as Mr Lunde warned that “there will be many more bankruptcies,” with companies to place greater focus on asset management instead.

The dramatic fall in shipping company stocks forced by the financial crisis has thrust Gothenburg-based Stena Bulk strongly on the acquisition trail to the extent that it has targeted a publicly-listed tanker company that it said it will buy by the end of the year.

Ulf Ryder, President and CEO of Stena Bulk, told reporters at Stena’s offices in Sweden, that buying undervalued stocklisted companies was “a more natural target than newbuildings for Stena which is a cash rich company”.

Refusing the identify the company it has targeted, Ulf Ryder said it was a quality stock listed shipping company.

He said: “We have targets in mind and I think you will see us taking over a tanker company by Xmas.”