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Home / Business / Why Carnival, Norwegian Cruise Line and Royal Caribbean’s stocks jumped in the latest CDC news

Why Carnival, Norwegian Cruise Line and Royal Caribbean’s stocks jumped in the latest CDC news



what happened

The Centers for Disease Control and Prevention’s No Navigation Order prohibits cruise ships from leaving US ports. This is just history.

On Friday afternoon, the CDC replaced a series of sailless orders issued earlier this year in response to the coronavirus with a conditional navigation order framework.

Share of carnival (New York Stock Exchange: CCL), Norwegian Cruise Line (Nasdaq stock code: NCLH)with Royal Caribbean (New York Stock Exchange: RCL) Hear the news immediately. As of today̵

7;s close, the stock has risen 5.6%, 5.5% and 4.8% respectively.

The collage shows a cruise ship, a person in a mask and a microbe

Image source: Getty Images.

So

So what has changed? The latest no sail order is scheduled to expire tomorrow, October 31. This will allow cruise operators to resume cruises on November 1. So basically, the rules just established by the Centers for Disease Control and Prevention (CDC) are that cruise operators can do this. Its goal is to “mitigate the risk of COVID-19 to passengers and crew and prevent the further spread of COVID-19 from cruise ships American communities and protect public health and safety.”

To this end, it will adopt a phased approach to resume cruising in American waters.

How to do

This means that initially, the cruise company will need to prepare adequate health and safety protection measures for the crew. Next, they need to build laboratory capabilities to test future passengers, including passengers on board.

After completing this task, the cruise company can start a “simulated voyage”.

However, cruise lines will need to apply for and obtain a COVID-19 Conditional Voyage Certificate before they can truly resume commercial operations with passengers. Even with such a certificate, unless the CDC allows it, sailing will be restricted to no more than 7 days. If the ship carries the coronavirus, the cruise time must be shortened and the cruise must be cancelled.

Result: Even if no sail orders were cancelled on November 1, and the framework of conditional sailing orders was implemented, investors should also believe that it will take weeks, even months, for the cruise inventory to resume cruise. A few years ago, they cruised again as before.

This recession is far from over.




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