Published at Wednesday, June 06th 2018. by beky audrey in Cruise Ship Cabins.
The asking price for this ship is less than the price for one large apartment on The Magellan. The asking price and selling price are two different prices. This ship could probably be bought for about 11 million dollars. It would be foolish to finish this ship in a Greek union shipyard. It can be economically towed over to the nearby shipyards in Tuzla Turkey. The ship can be finished there quicker and for about half the price and with better craftsmanship. This ship could be bought and finished to a high standard equal to The Orphalese for a total cost of much less than 100 million dollars (maybe even as low as 60 million). It can be finished to order with each residential unit customized to suit its owner(s). The finished product would be a brand new completely modern ship with luxury homes onboard which would be at least as good or better than any on the market. That still seems like a big chunk of change. But this is a big ship and it would easily accommodate 200 luxury residential units and an additional 200 or so conventional cruise cabins like The Orphalese. The average cost of the residential units would be less than $500000. That would mean that the smaller residential units would cost much less than the average price. Also with an additional two hundred (plus) conventional cruise cabins the cabin owners could recoup much of the operating costs and thus virtually eliminate the maintenance fees for themselves. The expense to owners can be less than 10% of the going rates if the buyers did not need to pay some slick promoters and salesmen but just bought the ship directly themselves sharing the actual costs by dividing the ship ownership among the buyers. Why would anyone want to pay ten times as much money to buy and much higher maintenance fees for a similar shipboard residential unit? The only reason I can think of is to impress others with how much money they can afford to throw away. Again the asking price is subject to negotiation. Used ships can be refurbished to look practically new and can be brought up to international safety standards (SOLAS). There are shipyards around the world that can do good quality work at even lower cost than the shipyards in Tuzla Turkey. If a ship is currently lying in Greece (as many are) then Tuzla is the best place to tow it for major shipyard work. The SE shipyards in the Black Sea port of Nikolaev Ukraine offers the best value for the money in that part of the world. The bottom line is that smart shoppers can get good deals even on lavish purchases such as a luxury residential home aboard a cruise ship. I maintain a list of those who have expressed an interest. The list is confidential and will not be shared for any marketing purposes. The purpose of maintaining the list is to facilitate joint ownership directly between buyers without any middlemen or promoters involved.
A cruise passenger`s perception of onboard service is so often dependent upon who their stateroom attendant was and which waiters / waitresses served their meals. Since my wife and I started Direct Line Cruises there have been several instances in which different clients on the same exact cruise would report radically different service levels. So at best any evaluation of service should be taken only as a generalization based on limited individual experiences while onboard.
There are some other figures that must be tabulated into the total cost of ownership. Acquisition cost is first and foremost. The next figure is the cost to put the ship in service. On an older ship this cost may be higher than the acquisition cost. On the other hand the cost to put a ship into service can be much lower if you were to get a good deal on a ship that already meets the international standards for ship safety especially SOLAS (Safety of Life at Sea). Maintaining compliance with Chapter II SOLAS 74 amendments is cost prohibitive for some older ships and they are typically scrapped instead of being refurbished at great expense. There is a very important SOLAS implementation date coming up on January 10 2010. On that date all commercial international ships will be required to be in compliance with the new fire safety codes. The most important new codes deal with the use of combustible materials in the ship. It will be expensive to replace all combustible materials in ships with non-combustible or flame resistant SOLAS compliant materials that meet the new safety standards. This will result in many ships being sold for scrap metal.
SOLAS 2010 also offers a tremendous opportunity for those who may prefer to have a very large houseboat instead of a commercial ship. Ships that are not in compliance with SOLAS 2010 are now selling for a song (inexpensively). A cruise ship can easily be converted into a megayacht with the stroke of a pen. Privately owned yachts not in commercial service and not carrying passengers or cargo for hire are exempt from many of the SOLAS requirements. Operating costs are also lower for a private yacht. It cost less to register flag and insure a private yacht. Megayachts can be flagged and classified for unlimited service. That means that a megayacht can go practically anywhere you want it to go. There is one major drawback to registering a cruise ship as a private yacht. You cannot use the yacht commercially. This cuts off a potential revenue source.
Operating a cruise ship is expensive. The expenses include the cost of fuel labor maintenance repairs spares food port charges insurance technical management shore management registration and the other costs of operating the ship. At first glance these costs may seem expensive but in reality the cost of living at sea is actually a bargain considering what you get based upon what you pay. The best value does not always translate to the cheapest price. If the ship is well managed the management will seek the highest quality goods services and labor at the very best global value. If the owners are dissatisfied with either technical or shore management they replace them.
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