Royal Caribbean Group has entered a long-term agreement with Meyer Turku shipyard in Finland. This deal secures newbuilding slots for the cruise giant until 2036. The agreement includes an order for a fifth Icon-class vessel and an option for a seventh, signaling Royal Caribbean's plans for future cruise ship development.
The partnership extends the relationship between the two companies, which have collaborated on the construction of Royal Caribbean's Icon class ships. This strategic move aims to support the cruise line's growth and innovation plans for the next decade.
Key Takeaways
- Royal Caribbean Group secured newbuilding slots with Meyer Turku until 2036.
- The deal includes an order for a fifth Icon-class ship and an option for a seventh.
- This agreement strengthens the long-term relationship between Royal Caribbean and the Finnish shipyard.
- Royal Caribbean plans to use these slots for the next generation of cruise ships.
- The Finnish government supports this agreement, highlighting its economic benefits.
Long-Term Partnership for Future Growth
The agreement between Royal Caribbean Group and Meyer Turku is a framework deal. It gives Royal Caribbean the right to build ships at the Finnish yard for the next 11 years. This commitment highlights the cruise operator's confidence in Meyer Turku's capabilities.
Royal Caribbean, based in Miami, is the second-largest cruise operator globally by fleet size. It holds the largest market capitalization in the cruise industry. This new deal helps the company plan its fleet expansion and development far into the future.
Fact: Icon Class Ships
The Icon class ships are currently the world's largest cruise vessels. Each ship measures 250,000 gross tons. The first vessel, Icon of the Seas, launched in 2023. It has a capacity for 5,610 berths.
Expansion of the Icon Class
As part of the new agreement, Royal Caribbean exercised an existing option to order a fifth vessel in its Icon class. This will be built at Meyer Turku. Additionally, the deal adds a new option for a seventh Icon-class ship. This is in addition to an existing option for a sixth vessel in the series.
The Icon of the Seas generated significant passenger interest and high demand for premium pricing after its debut. This success likely influenced the decision to expand the class further. The sister ship, Star of the Seas, was delivered recently. The Legend of the Seas is expected to sail next year, with a fourth vessel arriving in 2027.
"As we continue to reimagine the future of vacations, we are excited to continue collaborating with Meyer Turku to grow the Icon Class — a first-of-its-kind series that delivers exceptional vacation experiences — and positions us to usher in a new era of innovation that will disrupt the vacation sector through 2036," said Jason Liberty, Chief Executive of Royal Caribbean Group.
Next Generation of Cruise Ships
Royal Caribbean plans to use some of the newly reserved slots at Meyer Turku for a new class of ships. These will be the "game-changing" vessels following the Icon class. This suggests a continuous drive for innovation in cruise ship design and passenger experience.
The company aims to redefine the vacation sector through 2036. This long-term vision requires securing shipyard capacity well in advance. The partnership with Meyer Turku provides this crucial capability.
Background: Meyer Turku's Expertise
Meyer Turku, led by Chief Executive Casimir Lindholm, has been responsible for building all the Icon-class ships. The Clarksons Research shipping database shows that these vessels currently make up the shipyard's entire orderbook. This indicates a strong specialization and expertise in constructing large, complex cruise ships.
Industry Collaboration and Finnish Economy
The framework agreement is not just a business deal between two companies. It also involves collaboration with the Finnish government and the broader Finnish maritime industry. This collective effort supports high-level shipbuilding expertise in Finland.
Casimir Lindholm emphasized the importance of the agreement. "With the framework agreement now signed, we announce our common plan for the next decade in cooperation with Royal Caribbean Group and other key partners to build more Icon-class ships and drive the future of shipbuilding over the next decade," Lindholm stated.
He added, "I am extremely proud of the recognition that these orders bring to the skilled personnel at Meyer Turku and to the Finnish maritime industry expertise."
Economic Impact and Government Support
The Finnish Prime Minister, Petteri Orpo, welcomed the new agreement. He highlighted its positive impact on the country's economy. Such large shipbuilding projects create jobs and stimulate various related industries.
According to Prime Minister Orpo, "This new framework agreement is excellent news for Finland. The longstanding collaboration between Royal Caribbean Group and Meyer Turku will continue to have a significant positive impact on Finland’s economy, creating jobs across the country and energising our unique maritime ecosystem."
This shows how major shipbuilding contracts can benefit not only the direct companies involved but also the wider national economy through job creation and industrial development. The agreement ensures stability and future work for the shipyard and its suppliers.
Future Outlook for Cruise Industry
The cruise industry is continually evolving. Companies like Royal Caribbean are investing heavily in new and larger ships to attract passengers. This trend suggests a strong future for cruise travel, with a focus on innovative designs and enhanced guest experiences.
Securing shipyard slots for over a decade is a strategic move. It allows Royal Caribbean to maintain a competitive edge by introducing advanced vessels regularly. This consistent innovation helps to keep passenger interest high and drive growth in the vacation sector.
- The Icon of the Seas was delivered in 2023.
- The Star of the Seas was delivered in 2024.
- The Legend of the Seas is scheduled for 2025.
- A fourth Icon-class vessel is planned for 2027.
- The newly ordered fifth Icon-class ship will follow.
