Carnival is over for two local cruise ships

CARNIVAL Cruise Lines will halve its Australia-based fleet in 2028, citing vulnerability to economic and regulatory headwinds.

Carnival Australia recently announced the Sydney-based Carnival Adventure would cease sailing year-round and instead deploy to the Alaska market for six months. The group has now confirmed the further step of the ship’s total withdrawal, effective its Sydney departure on 20 March 2028.

Simultaneously, Carnival Luminosa, which has been cruising seasonally from Brisbane for the last three years, will also leave the local market entirely when it sails from Sydney on 15 March 2028.

This will leave only Carnival Splendor and Carnival Encounter operating year-round from Sydney and Brisbane respectively – and Carnival has hinted even those deployments may not continue in the future.

“As the only cruise line with ships dedicated year-round to Australia, Carnival has greater exposure to changes in local market and operating conditions than cruise lines with a seasonal or more limited presence,” Carnival Cruise Line country manager Peter Little said in a statement.

“We will continue to work constructively with the federal government as it develops the future arrangements for cruise ships operating in the Australian market,” Mr Little said.

The withdrawal announcement comes just a fortnight after the Federal Government announced the extension of the exemption from the Coastal Trading (Revitalising Australian Shipping) Act 2012 for eligible cruise operators, until 31 December 2028.

Carnival Australia has been a constant target of maritime unions for the past 18 months as they allege ill-treatment of crew on the Australian-based ships and breaches of the Maritime Labour Convention. This has obliged the Australian Maritime Safety Authority to become involved.

Carnival has vehemently denied the accusations and to DCN’s knowledge there have been no findings against it.

The government has stated it expects that all vessels benefitting from the extended exemption “will fully comply with their international legal obligations, including under the MLC. Commencing on 1 January 2027, the exemption will require that vessel owners’ policies and seafarer work agreements do not restrict the ability of seafarers to engage in collective bargaining.” 

Industry commentators have suggested the two-year exemption extension - which will remain in effect while the Government considers the final report of the Independent Review of the Act – is too short-term for a business that plans ahead using much longer time-frames. 

Carnival will not have been encouraged by infrastructure minister Catherine King’s declaration that the Government intends for this to be the final exemption for cruise vessels.

And notwithstanding Carnival Australia’s rationale, one wonders whether the group’s decision to retire the P&O Cruises Australia brand and transfer two ships to the Carnival umbrella has been as successful as hoped.