As the weather continues to warm up and the summer season is fast approaching, the CEO of Royal Caribbean (NYSE: RCL), Richard Fain, released a video statement on the cruise industry negotiations with the Centers for Disease Control & Prevention (CDC) on the termination of the no-sail order. News in the cruise industry mentions Fain’s remark that 400,000 people in 30 different countries went on voyages where governments approved a restart of the popular ocean trips, which Fain “optimistically believes the CDC will do as well.”
Fain further noted that “the CDC is engaging in a constructive dialogue with us in the industry to re-enable a safe and healthy way of service delivery”, a change from the government agency’s previous decision to nix cruises until November. According to Fain’s video commentary on Royal Caribbean’s YouTube channel, “the CDC has publicly stated that it is possible to resume sailing as early as mid-July.”
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Fain attributes the change to the emergence of high-quality data on successful safety practices, along with the input of numerous small business owners calling for a restart of the voyage, similar to those allowed in other sectors. Although the executive did not mention it, a lawsuit filed by the state of Florida on April 9 could also be a contributing factor.
According to the case, the shipping industry is isolated and subject to an arbitrary, continuous strike, unlike most other sectors. According to CBS Miami, Gov. Ron DeSantis has expressed strong doubts that the government has the authority to “mothball a major industry for more than a year, based on very little evidence.”
Fain stressed that the decision would eventually belong to the CDC, but noted that the summer trips to Alaska and other destinations, according to him, seem increasingly likely.
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