Disgraceful!
CRUISE Law News, an online site, is reporting that Crystal Cruise line has run aground in some ports, with ships seized for non-payment of bills.
The site reports also that a number of creditors are after the line including mortgage holders, even while some employees are reporting that they are owed wages.
The cruise industry has been in trouble since early 2020 when the industry became a hotbed for the spread of the novel coronavirus.
Many ships were mothballed for months while ports were closed in 2020.
A recovery was thought to be underway by mid-2021, but Delta and then Omicron variants of the virus emerged. Cruise lines have been struggling to keep financially afloat under the circumstances.
Cruise Law News reported that two Crystal Cruise line ships were on their way to Miami last weekend, after 14 days in the Caribbean, but returned to The Bahamas, apparently after news of an unfavourable court ruling against the company.
However, The Bahamas proved to be no safe harbour as authorities there seized two ships belonging to the line over unpaid fuel bills.
The amount of the bill cited by the news site was US$4.6 million; however, it is not clear to whom it is owed.
Other news outlets reported that some crew members were aboard at the time of its seizure. The Crystal Symphony and Crystal Serenity were seized off Freeport, Bahamas, after they asked passengers to leave the ship on the island of Bimini.
The captain informed the crew, it was reported, that the seizure was “unfortunate but expected”. “The ship has been placed under arrest by the local authorities over some unpaid bills, and as bad as it sounds it’s actually quite a good thing to happen,” the captain said in a recording.
The company meanwhile communicated that it was dealing with pending legal matters, highlighting that cruises had ended and no passengers were on board. It added that officers and crew on board were “being well cared for.” They stated that crew members had been paid up.
The amount of the fuel billing reported varies, with Bloomberg quoting US$1.2 million. It was highlighted that fuel supplier Peninsula Petroleum Far East secured a warrant against Crystal Cruises and Star Cruises Limited, which is owned by Crystal Cruises operator, Genting Hong Kong Ltd.
In a press release earlier in January, the company indicated the pending suspension of cruises, stating, “Crystal announced on January 19, 2022 that it has suspended voyages for its Ocean and Expedition ships through April 29, 2022, with River cruises suspended through the end of May 2022. Suspending operations will provide Crystal’s management team with an opportunity to evaluate the current state of business and examine various options moving forward.”
The company quoted Jack Anderson, Crystal’s president, who said, “This was an extremely difficult decision but a prudent one given the current business environment and recent developments with our parent company, Genting Hong Kong. Crystal has been synonymous with luxury cruising for more than 30 years and we look forward to welcoming back our valued guests when we resume operations. We wish to thank our guests and travel advisors for their incredible support during these ongoing challenging times.”