Cruise Lines can decide if to follow CDC COVID 19 guidance
Cruise lines sailing in U.S waters can decide if they want to follow COVID 19 guidance from the Centers for Disease Control and Prevention CDC, which frustrated would-be passengers and ship companies in the face of soaring Omicron variant cases.
After the CDC's framework for Conditional Sailing Order CSO - in place for cruise companies since 2020 - expired last week, the health agency s guidance for cruise ships has become voluntary for ships operating in foreign and U.S. waters.
The CDC warned against cruising despite vaccination status, after the Omicron wave resulted in over 90 ships sailing with passengers from the U.S. being investigated by the CDC because of COVID 19 cases. The CSO officially ended on January 15 and transitioned into a voluntary framework.
Non-participating vessels that sail internationally and operate within US waters will be classified as grey on the CDC's cruise ships color status website indicating that the agency has not reviewed the health and safety protocols of the operators. Cruise ships that opt out and only sail in US waters will not be listed on the website.
The CDC made it clear that the new program is voluntary, but it recommended cruise lines follow its COVID 19 mitigation guidelines.
There is a level of frustration because I think messaging throughout this epidemic has just been so tough, whether it be at the local, county or state level or federal level, or the CDC. Alex Sharpe, President and CEO of Signature Travel Network, told Yahoo Finance in a phone interview.
It's not known how many cruise ship operators are expected to opt in to the discretionary program. Norwegian Cruise Line Holdings NCLH has pledged to continue applying the protocols on a voluntary basis as part of a commitment to health and safety, the company said in a statement.
In a recent interview with Good Morning America, Tom McAlpin, President and CEO of Virgin Voyages, said that the recommendations are working and that we're going to opt in to the voluntary protocols. The CDC's move was praised by Cruise Lines International Association, an industry group. The transition to a voluntary program recognizes the cruise industry's unwavering commitment to provide the highest levels of COVID 19 mitigation found in any industry, the group wrote.
Some cruise ships have to cancel mid-voyage trips because of the coronaviruses, which is why the epidemic is still creating industry headaches. Omicron has increased the number of positive cases among full vaccinated crew members.
Norwegian Cruise Line's Gem ship was forced to cancel a 10 night trip to the Caribbean due to COVID related circumstances. We're very busy and we're very busy. The second half of 22 and into 23 and cruise lines have some 24 itineraries out already, Sharpe said. Travel agents have to provide clarifications on the updated protocols for cruise ships because of the current environment.
The whole thing gets jammed up for this. Sharpe said that a lot of it is just clarification of messaging. Wall Street is bullish about how the CDC's order will affect the industry's outlook.
Robin Farley, UBS analyst, wrote in a note to clients this month that "we don't think this changes anything about ship operations, but we see it as positive for sentiment on cruise stocks."
The cruise lines have already adhered to CDC recommendations even in markets where they don't have to, and we don't expect that to change. The firm added that it believes that it will be a sentiment positive for the cruise stocks, which will reduce the tail risk of a potential shutdown.