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SINGAPORE: It may not be full steam ahead for the cruise industry amid the ongoing conflict in the Middle East, but those operating out of Singapore are finding strategic ways to stay afloat.<\/span><\/p>\n To navigate surging marine fuel prices, ship captains are actively reducing sailing speeds and rerouting vessels, while firms are quietly scaling back their usual promotions, cruise operators and industry watchers said.<\/span><\/p>\n While airlines and cargo firms grapple with fuel shortages and route disruptions, the cruise sector appears to be charting a much steadier course, they added.<\/span><\/p>\n For one, holidaymakers are still arriving at and embarking from Singapore’s cruise terminals in droves.<\/span><\/p>\n In response to CNA\u2019s queries on whether the Middle East crisis has affected demand in cruise vacations, the Singapore Tourism Board (STB) said international cruise arrivals to Singapore jumped by 10 per cent year-on-year in March this year.<\/span><\/p>\n STB\u2019s director of cruises, Ms Chitra Rajesh Kumar, said Indonesia, mainland China and Malaysia were the top three source markets.<\/span><\/p>\n \u201cCorrespondingly, cruise passengers from these markets also increased during this period,\u201d she said.<\/span><\/p>\n For vacationers like Ms Kristabel Quek, 40, the broader energy crisis hasn’t dampened the appeal of the high seas.\u00a0<\/span><\/p>\n The education consultant has booked two sailings for August and October. While she made the bookings after the start of the Middle East crisis, she said the prices “didn’t really change” as compared to cruises she had gone on prior.\u00a0<\/p>\n She said that conversely, taking a cruise has become more attractive than other modes of international travel as a result.\u00a0<\/p>\n “The air fare increase, risk of cancellation, and political uncertainty make travelling (by air) a little more troublesome and worrisome,” she said.\u00a0<\/p>\n “Cruising may be easier when we want to bring old folks and kids together.”<\/p>\n This steadfast passenger demand, coupled with the industry’s ability to tweak itineraries and slow down to save fuel, has allowed operators to weather the storm through behind-the-scenes cost optimisations.<\/span><\/p>\n While traveller demand remains firm, cruise operators said they are still feeling the strain of higher fuel costs <\/strong>and have imposed surcharges on passengers, though the increase is relatively small given the typical price of a cruise vacation, which can go into the thousands.<\/p>\n Very low sulphur fuel oil, the main type of marine fuel used by cruise ships, saw its global prices skyrocket from about US$550 per tonne in February to a peak of about US$1,060 a tonne in March, according to price-tracking platform Ship & Bunker.<\/p>\n As of May 5, the price per tonne of marine fuel is US$975.<\/p>\n StarDream Cruises, which operates three ships, said its operational costs have increased, particularly due to higher global fuel prices.<\/p>\n Its president Michael Goh said its Asia itineraries, including those calling at Singapore, have remained largely stable. However, the cruise line has made \u201cselective adjustments\u201d across parts of its network \u201cas part of ongoing operational optimisation\u201d.<\/p>\n \u201cThese have been carefully managed and have not materially impacted the overall guest experience,\u201d said Mr Goh.<\/p>\n The company has also implemented \u201ccost optimisation measures\u201d such as route and itinerary optimisation, speed management and energy efficiency initiatives across its fleet.<\/p>\n In March, StarDream Cruises announced that passengers would have to pay a S$15 surcharge per person due to rising fuel costs linked to the Middle East conflict.<\/p>\n Mr Goh said that the firm\u2019s pricing remains \u201ccompetitive and market-responsive\u201d.<\/p>\n He cited targeted promotions, such as buy-one-get-one-free offers, which ensure its cruises remain \u201caccessible and attractive despite broader cost pressures\u201d.<\/p>\n<\/div>\nMANAGING COST PRESSURES WITHOUT IMPACTING GUESTS<\/span><\/h2>\n