Cruise ship owners drive the European shipbuilding industry

By Marek Grzybowski

The order book for cruise ships to be built in Europe by 2036 amounts to EUR 57 billion, with additional orders expected, promises Cruise Lines International Association (CLIA). Most of the world’s cruise ships are also modernized and refurbished in European shipyards. Not only the shipyards that have obtained contracts are involved in the construction of passenger ships in Europe, but also a large group of cooperators. Among them is CRIST.

The shipyard from Gdynia has been cooperating for many years with partners in France, Germany and Finland. From time to time, it delivers fully equipped blocks, which are elements of cruise ships. Among others, the CRIST shipyard built a block, which is an element of the third cruise ship in the Icon series of the Royal Caribbean line. The ship is being built in Meyer Turku and is to be put into service in the second quarter of 2026. The CRIST shipyard was entrusted with the construction of a fully equipped floating block with a length of 94 m, width of 48 m and height of 15 m. Two LNG tanks are installed in the structure. The weight of the hull is about 5,200 tons, and the weight of the installed equipment is to be about 2,500 tons.

The construction of passenger ships involves many workers, engineers and technicians of various specialties with high qualifications. – A diversified supply chain of small and large companies specializes in equipping and supplying cruise ships with products made in Europe, supporting jobs throughout Europe. Thanks to these investments, the cruise ship industry is essential to the European maritime industry – emphasizes the management of CLIA.

Almost 100% of cruises from Europe
According to CLIA data, “About 97% of the world’s cruise fleet was built in Europe”. If we take into account the value of the cruise ship portfolio located in world shipyards, then 98% of ordered ships will be built in European shipyards. Most of the cruise ship fleet is also modernized and renovated in European shipyards. Almost all cruise ships on European rivers and lakes are ships built in Europe.

In Europe, entire production chains from many industries have specialized in the production of passenger ships, often with a high degree of specialization and innovation. This applies not only to ship equipment but above all to equipment providing sea tourists with a comfortable stay and relaxation in comprehensive amusement parks.

For example, the “Icon of the Seas” launched in 2023 is a 365 m long ship intended for sailing in the Caribbean. The ship has 2,805 cabins and can take on board over 5,600 passengers at a time. They are served by a crew of around 2,350 people. The ship is described as Royal Caribbean’s most environmentally friendly cruise ship.

Passengers will have at their disposal 40 restaurants, 7 swimming pools (including Royal Bay – the largest swimming pool on the ship). The ship also has the largest floating water park “Category 6” with 6 longest slides, an aqua park and a surfing zone. An attraction for “adventurers” is “Crown’s Edge” (an edge suspended high above the water). It is part skywalk, part rope park. A novelty on this type of ship is “Swim & Tonic” – the largest swim-up bar at sea and the first in the Royal Caribbean fleet.

The AquaDome space required extraordinary equipment – a huge dome made of steel and glass. Fountain shows can be held in the AquaDome. On this deck there is also a place for the AquaTheater diving shows. Of course there is a network of restaurants and bars.

 

Cruises in the supply chain
The construction of such a unit has generated a diverse supply chain in which an extensive network of small and large companies operates. CLIA emphasizes that when equipping cruises, attention is paid to ensuring that the equipment is manufactured in Europe. In this way, the maritime tourism business supports the activity of the broadly understood shipbuilding industry to a large extent, providing jobs throughout the European Union. – Thanks to these investments, the cruise industry is essential for the European shipbuilding infrastructure and beyond – emphasizes CLIA.

– Cruise operators decide on 80% of the value of orders for commercial ships in European shipyards, which makes our industry crucial to maintaining European technical know-how in the field of shipbuilding – emphasizes CLIA. “European companies are involved in the entire value chain of cruise ship construction – supplying everything from steel plates to the hull, on-board equipment and interior furnishings with high technical parameters”.

As can be seen in the example of the “Icon of the Seas”, furniture manufacturers, glaziers and carpet manufacturers and manufacturers of complex equipment for entertainment spaces are involved in the construction of the passenger ship. Let us add that there are numerous night clubs, an ice rink, a park with trees and theatres on the ship.

Meanwhile, during the operation of the passenger unit, its activities benefit food suppliers. CLIA explicitly mentions that these are “Farmers, cheese makers, pasta makers and fishmongers are among those who supply cruise ships sailing around Europe with European products”. As a result, entire communities in Europe “reap economic benefits from the construction and supply of cruise ships and from maritime tourism in places visited by cruise ships”.

Innovation and business drivers
It is also emphasised that “the cruise industry is a driver of innovation in Europe, supporting the development of alternative fuels and new environmental and engine technologies – and as such can be a catalyst for investment in European manufacturing capacity for new technologies”.

Let us recall that Viking Line was the first operator to introduce gas power for the main engines on the Viking Grace ship. The aforementioned “Icon of the Seas” will be powered by natural gas (from an LNG installation) and is equipped with fuel cell technology and the possibility of waste heat recovery.

The orders for new ships are justified by the dynamically developing industry, which has recovered extremely quickly after the collapse during the Covid-19 pandemic. The latest data shows that 82% of passengers who have previously cruised say they will cruise again. 10% of passengers who embark on ships take three to five cruises per year.

27% of cruise passengers in the last two years were cruise newbies (an increase of 12%). Millennials are enthusiastic about planning cruises, according to CLIA statistics. It was also noted that “75% of the US population lives within driving distance of a cruise port.”

It is no wonder that cruises to the Caribbean are very popular. The dynamic growth of the passenger tourism market is evidenced by the results of, for example, the Port of Nassau in the Bahamas. In 2024, the port welcomed 5.6 million passengers on ships. This is 1.2 million more than in 2023 and almost 2.5 million more than in 2022 – informs the management of the passenger port.

Seven megaships can dock at the Nassau quays at one time. Six of these berths can handle Royal Caribbean’s Oasis-class ships, each of which has a capacity of over 5,500 guests. The city of Nassau earned $2.6 billion from maritime tourism in 2024, most of which went to local tour operators, restaurants and shops. After a $300 million upgrade in 2023, the Port of Nassau plans to build a $35 million water park, which is scheduled to open in late 2025.

After a record-breaking 2023, when 31.5 million passengers travelled by sea, in 2024 there were 35.7 million sea tourists on board cruise ships. According to CLIA, their number will continue to grow, hence the orders for 76 new cruise ships by 2028.

The maritime tourism industry therefore lives in good symbiosis with shipbuilding and supports the maintenance of the entire shipbuilding and its extensive value chain in a state of high readiness. CLIA emphasizes that this activity “combines a mix of history, heritage and tradition with the generation of innovation for the future.” It is particularly important to generate demand for innovation.

Passenger ship operators emphasize that as an industry they are striving to achieve net zero emissions by 2050. Passenger ship operators are leading the way in implementing innovations in projects that ensure the introduction of sustainable development on sea routes and in ports. Cruise enthusiasts emphasize that they are not limiting “investing billions of euros in new technologies and sustainable energy solutions that will be crucial for wider application in the maritime industry and beyond”.

Of the 76 new cruise ships ordered worldwide as of September 2024, 72 ships will be built in Europe over the next 12 years. – This is a sharp contrast to other types of commercial ships, which are currently built mainly outside Europe, including China and Japan – emphasizes CLIA.

CLIA Main EU Cruise Shipyards: