American Classic Voyages News

American Flagship Project challenges President Obama to explain why his Administration has blocked America’s entry into the $40 billion-a-year foreign-dominated cruise sector. The Obama Administration has announced a policy prohibiting the use of its Title XI ship financing program for American flag cruise ships. World City America Inc. has devoted more than fifteen years and invested $60 million in an effort to claim for the American economy and American jobs a share of the US-driven, but foreign-dominated, cruise industry.

Cornel J. Martin has been named as Waterways Council, Inc.'s President and CEO (designate), effective August 1, 2008. Martin will transition alongside current President and CEO R. Barry Palmer, who will retire at the end of December. Palmer has served as President and CEO of Waterways Council for five years, and before that, served for 22 years as Executive Director of DINAMO, the Association for the Development of Inland Navigation in 's . Martin most recently served as CEO and Chairman of Direct Workforce…

The U.S. Department of Transportation’s Maritime Administration has sold two small cruise vessels, the Cape May Light and the Cape Cod Light, to Voyager Owner, LLC, and Discover Owner, LLC, respectively.  The new owners are limited liability companies located in . The Maritime Administration took possession of the two ships after their original owners, subsidiaries of American Classic Voyages, defaulted on loans that the Maritime Administration had guaranteed. The purchase price was $9 million apiece.  The ships will be registered in the , and the new owners plan to sail them under registry.  The ships were sold in “as-is, where is” condition, and will need refurbishing to sail in the cruise trade. The ships are currently located in , , on the south of .

American Classic Voyages Inc., the largest U.S.-flag cruise company, announced on October 19 that it has filed a voluntary petition for reorganization under Chapter 11 Bankruptcy Code in Wilmington, Del. The company has ceased operations for its Hawaii vessels, the ms Patriot and the ss Independence, following the completion of their last cruises. cease operation at the completion of each vessel's cruise following the announcement. The Delta Queen steamboat, the company's National Historic Landmark flagship, will continue to operate its scheduled future voyages. In addition, AMCV said it intends to work with Northrop Grumman Corporation and the U.S.

Northrop Grumman Corporation announced today that, effective immediately, it has suspended all work on Project America, a cruise ship program to build two 1,900-passenger cruise ships at its Pascagoula, Miss., Ingalls Operation. Approximately 1,250 of the 1,600 full-time employees assigned to the project will be affected by this suspension. An additional 500 subcontractor employees could also be affected. American Classic Voyages Company (AMCV), which is the parent of Project America, filed for Chapter 11 bankruptcy protection on Oct. 19, following the tragic events of Sept. 11 and their impact on the tourism industry. As previously stated…

Finnish technical consultancy Deltamarin, in characteristically innovative style, is breaking new ground with the development of new computer-based services encompassing safety simulation and risk assessment, knowledge management and life-cycle support. Its latest endeavors form the basis of what it describes as contemporary configuration engineering and management, and extend the role and business scope of a practitioner of the latest technology tools in marine design, engineering and production. Armed with new methodologies and products, which offer a seamless link from the design and construction period into the post-delivery stages…

Finnish technical consultancy Deltamarin, in characteristically innovative style, is breaking new ground with the development of new computer-based services encompassing safety simulation and risk assessment, knowledge management and life-cycle support. Its latest endeavors form the basis of what it describes as contemporary configuration engineering and management, and extend the role and business scope of a practitioner of the latest technology tools in marine design, engineering and production. Armed with new methodologies and products, which offer a seamless link from the design and construction period into the post-delivery stages…

Ramifications and future fall-out on the world, nation and marine business from the terrorist attacks of September 11 will surely be a long, evolving process. It is impossible to conceive of what the next year will bring — business-wise — when it is difficult to project what is in store for the coming weeks and months. Gloom is surely the mood of the day, fed by daily reports of plummeting freight rates and oil prices, as well as Chapter 11 bankruptcy filings, such as was recently announced by American Classic Voyages and Renaissance Cruises. It is, however, more critical than ever to realize that the sun, both literally and figuratively, will rise again.

The passenger vessel market is a classic mature marine market. Segments of it are doing well, while other parts have literally died. For example, the overnight segment of the market saw one substantial vessel delivered in 2003 with none on the horizon for 2004. The Empress of the North, a 360-ft. sternwheeler was put into service in September working the West Coast-Alaska route. Now that ice is a problem in Alaska, the vessel is working the Columbia River system in the Northwest U.S. The vessel was the largest vessel ever built by Nichols Brothers Boat Builders, Freeland, Wash. and is owned by American West Steamboat Company, Portland, Ore. Developing overnight service is the most difficult part of the passenger vessel industry to get established.

In the fall of 1999, American Classic Voyages (AMCV) announced plans to almost singlehandedly revive the business of building cruise ships in the United States. Critics claimed it couldn’t be done, but the ships steadily took shape on the building ways in Pascagoula, Mississippi. Two years, a sour economy and horrific terrorist attacks later, the dream of building cruise ships in the U.S. is seemingly dead, as AMCV filed for Chapter 11 and the Maritime Administration is unwilling, at press time, to fund the ships further. While the cruise industry was hurting prior to the terrorist attacks of September 11, the industry has been put into a seemingly perpetual tailspin as economic woes and fear of travel have conspired to leave ships far from full capacity.

The recent confluence of three events, all strangely relating to the number 11, is presenting the U.S. shipbuilding industry with challenges greater than seen in many decades. American Classic Voyages (AMCV), owned by Chicago billionaire Sam Zell, is the nation's largest provider of Inland River and Hawaiian Island overnight cruises. In mid October, the company declared Chapter 11 bankruptcy and that action has led the Maritime Administration (MARAD) to cancel its Title XI loan guarantee on the $1 billion construction program. Called Project America, the program would have built two 1,900-passenger cruise vessels for the Hawaiian Islands tourist market. With the financing guarantee cancelled, the shipyard has permanently stopped working on the two cruise vessels.

Despite the less-than-stellar performance by the cruise industry during the last part of 2001, the industry more than had its fair share of newsmaking events — aside from the September 11 terrorist attacks — which ultimately exposed the fraility of this leisure sector. Beginnning with the demise of Renaissance Cruises almost immediately after the attacks, the industry suffered an additional blow in October when American Classic Voyages’ (AMCV’s) subsidiary U.S. Lines filed Chapter 11 — causing the dream of American cruiseship building to cease before it could even begin. These events, which were almost reminisicent of the faltering cruise industry of the 1970’s…

There are several quick conclusions you can draw about passenger boat construction in the new millennium. First it is a smaller market than 10 years ago with far fewer boats being built today than a decade ago. Secondly almost all of these vessels are built on the east or west coast. There are virtually no passenger boats being built in the south. Third, the number one vessel type being built is the ferryboat and more specifically the all-passenger ferry that shuttles people at 25 knots or better. In the years between 1987 and 1993 shipyards all over the country were building 600-passenger excursion-dinner boats in great numbers as sightseeing and dining vessels on America’s great rivers, lakes and bays became increasingly popular.

Following the decision to enter into bankruptcy this past October, American Classic Voyages has agreed to sell two of steamboats - Delta Queen and Mississippi to Chicago-based investment firm Waveland Investments LLC for $3.75 million. The company, which is privately-held, plans to take over the boats, effective next month. Mississippi Queen, which ceased operations in October, will resume its itinerary on May 7, while Delta Queen, which halted its schedule in January will begin sailing again on August 26. While the sale of the vessels was confirmed this past weekend, there is still a possibility that the vessels could be passed off to another buyer when they are auctioned off in Chicago on May 3 - provided that If another group outbids Waveland's offer.

Subsequent to recent reports that the U.S. Navy had a vested interest in the half-completed cruise vessels for American Classic Voyages now-defunct U.S. Lines, the Navy has confirmed that it is no longer interested in pursuing the vessels, which are currently at Northrop Grumman in Pascagoula, Miss. According to Adm. Vernon Clark, the Navy had reached the decision after its engineers examined one of the ships at the yard. Clark confirmed the Navy's decision when he appeared before the Seapower Subcommittee of the Senate Armed Services Committee by simply stating that the ships were not suitable for Naval use.

The latest in the saga surrounding the remaining vessels of the American Classic Voyages' (AMCV's) fleet involves the vessel, which was formerly known as M/S Patriot. Carnival Corp.'s Holland America Line brand has entered into a long- term agreement to charter the cruise ship, which was also once known as m/s Nieuw Amsterdam, to Cypress-based Louis Cruises, which will subcharter the vessel to Thomson Holidays in the U.K. The vessel will be marketed as the Thomson Spirit. Holland America sold the vessel to U.S. Lines, a subsidiary of AMCV in 2000, which operated the ship in Hawaii under the name Patriot, however, it was reclaimed by Holland America in foreclosure proceedings earlier this year. The charter became effective yesterday.

In what has escalated into a heated bidding war for what was left of American Classic Voyages' Delta Queen Steamboats, came to an end yesterday with Delaware North Companies sealing the deal with the steamboats' parent company. As originally reported on Marinelink last month, Chicago-based Waveland Investments and New Orleans-based Uniworld had submitted bids for the two steamships - Delta Queen and Mississippi Queen - the two remaining ships of the line, which declared bankruptcy this past October. Waveland submitted its $3.75-million bid, with intentions to take over the vessels following their auction on May 3. Delaware North, however had other plans.

It's a timeless piece of history that is the newest deal going on in the cruise ship industry - the deal between the Delta Queen Steamboat Co. and Atlantic Marine, which calls for the building of two U.S. Coastal flag ships inspired by the former Fall River Line Vessels which ran from 1847 to 1937. It was the age in which water transportation was the only mode of distance travel. Henry Ford and the Wright Brothers had not yet become household names and the horse and carriage reigned as the only means of getting to and fro. Aristocracy held court on ships that sailed the high seas - namely the Fall River Line, which ran from New York to New England. Inspired yet? Executives at Delta Queen were - so much that they decided to model their current project after the famed line.

Pacific Coast Maritime has been selected by Litton Ingalls Shipbuilding to provide the exterior doors and windows for the United States Lines cruise vessels currently under construction for parent company American Classic Voyages (AMCV). The contract calls for the supply of more than 1,200 doors for the private verandas and 600 windows, both of which will be of the heavy-duty clamp-in type.

Litton Ship Systems' Ingalls Shipbuilding division, located in Pascagoula, Mississippi, has signed a Memorandum of Agreement (MOA) with SeaAmerica Cruise Lines, Inc., based in Hollywood, Fla. Under the MOA, Litton and SeaAmerica will develop a ship design leading to contract negotiations for the construction of two 42,000-ton, 1,000 passenger cruise ships. The program will include options for two additional ships. Construction of the cruise vessels would utilize both of Litton Ship Systems' production facilities — Litton Ingalls Shipbuilding in Pascagoula and Litton Avondale Industries in metro New Orleans, La., and maximizing the resources and experience of both shipyards to achieve operating synergies.

An effective purchasing strategy is at the core of successful purchasing departments. Strategies that offer total value to an organization should be the goal of all purchasing organizations. Purchasing professionals around the world are always in search of new strategies that creatively reduce costs and add previously unrealized value to an organization. Since motivating multi-company groups is difficult, the purchasing department must offer a clear strategy that offers value to all involved. Hence, Purchasing Programs, procuring products plus services, is a strategy that can be employed successfully to bring value to all involved. The theory of Purchasing Programs is to leverage vendors to offer products and services — whereas previously — vendors were only offering products.

American Classic Voyages (AMCV), has appointed Nicholas J. Davison vice president, finance. Davison, who previously served as financial and operations officer with Cunard Line for more than 14 years, will be responsible for the corporate finance departments in both New Orleans and Hawaii, as well as the financial operations of all AMCV cruise vessels.

A recent clutch of 'Rolls-Royce' shipboard equipment and technology contracts in Norway arising out of specialized, capital-intensive newbuild projects testified to the U.K. group's march into the commercial marine domain. For sure, the emergence of the engineering group's name in new mercantile circles is the outcome of last year's acquisition of Vickers, and its Vickers-Ulstein Marine division, rather than the result of U.K. home-grown product diversification. But the new proprietor of the former Ulstein and Vickers' interests intends to build on the platform and integrated system opportunities offered by ownership of the industry's most extensive global network of marine equipment production.