Is there a turnaround for NZ Cruise and Shipping Industry in 2021?

Summary

• The NZ cruise industry witnessed a downward spiral, last year due to COVID-19 induced lockdown.
• Comparatively, the shipping industry fared well in 2020 despite the pandemic associated uncertainties.
• The road to recovery though gradual, is surely clear for the cruise industry, calling for an adherence to government guidelines.

One of the most high-octane industries in the world, the cruise industry witnessed losses in the year 2020. With the uncertainty that engulfed the entire world due to COVID-19, cruise liners across have had to bear heavy losses, since taking a leisure trip was probably the last thing on people’s mind.

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While everybody was struggling to keep up with things like stocking up on basic necessities and maintaining social distancing besides other precautions, taking a luxury cruise vacation could not have been on their priority list at all.

Many big cruise liner companies are ready to resume operations in the near future. Announced on January 6, 2021, a British- American owned P&O Cruises Australia shall open New Zealand liners from around the mid of the year 2022. The Company further said that local cruises (within Australia) were still waiting to be on track by April 2021.

This is however subject to the latest rules and instructions laid out by the government. As far as the mindset of the people goes, they are eager for a vacation, and are simply waiting for a green signal from the authorities stating it is safe to travel, and that the looming COVID-19 concerns are over.

New Hopes with 2021

The new year having brought an optimistic approach for the industry, P&O President Sture Myrmell mentioned it is also important to keep one’s expectations realistic about how things are going to proceed from hereon.

Initially, the first sailing of the year 2021 was scheduled to begin from February 2021, which now stands cancelled. People who had already booked their tickets can track and request for refunds on the cruise’s website.

The shipping sector and how it has been affected

There are several shipping companies across the world that have suffered at the hands of the COVID-19 virus too.

Image Source: Shutterstock 

Let’s have a look at the two NZX listed shipping stocks- MFT and MMH 

Mainfreight Limited Holdings

Mainfreight Limited offers a complete range of freight services including air and ocean network as well.

While Mainfreight Limited (NZX: MFT) witnessed a lull in trade due to COVID-19 related border restrictions in the first few months of 2020, the rest of the year fared comparatively well. The year 2021 has brought about positive trading for it.

On the 4^th of January 2021, Mainfreight saw its share prices rising up to 61.43% in comparison with the last 52 weeks. According to the financial results of the H1 2020, the revenue earned by the group saw an increase of 7.2%, standing at NZ$1.609 billion, as compared to the same time last year.

On 19 January 2021, Mainfreight was at NZ$66.30, up by 1.98% from its last close.

Marsden Maritime Holdings Limited

Marsden Maritime Holdings Limited (NZX: MMH) is one of the leading port operators in the country.

Having fared well through the later part of 2020 after the initial COVID-19 restrictions were lifted. For the financial year closed 30 June 2020, the Company witnessed a profit of NZ$6.7 million, which was NZ$3 million less than what was recorded at the same time in the previous year. The company shares a positive outlook for the future despite the COVID-19 related uncertainties.

On 19 January 2021, Marsden Maritime Holdings last traded at NZ$6.30, down by 0.32% from its last close.

Road to recovery for NZ Cruise Industry

• The New Zealand Cruise industry is all set to work closely with the government to find ways to improve the industry as well as the nation’s economy.
• The plan is to begin work once COVID-19 situation becomes stable and only start cruise liners for public when it is absolutely safe to do so.
• The health and safety of the guests, as well as the staff is of the utmost importance. Hence, the Cruise Lines international Association is under the process of creating new COVID-19 related protocols so that the work resumes normally in the future.