BUNKER INDEX :: Price Index, News and Directory Information for the Marine Fuel Industry

« News Home
:: Monthly Archive

News Topics
:: Air Pollution
:: Agreements & M&A's
:: Alternative Fuels
:: BunkerBlog
:: Cargoes & Storage
:: Company News
:: Efficiency, Costs & Charges
:: Environment
:: Events
:: Financial
:: Fuel Quality & Testing
:: Lubes & Additives
:: Oil Spills
:: People
:: Port News
:: Projects
:: Regulation, Legal
:: Services, Products,Technology
:: Statistics & Research
:: Vessels

Regional Archive
:: Americas
:: Asia/Oceania
:: Europe
:: M.East/Africa

BUNKER INDEX :: Price Index, News and Directory Information for the Marine Fuel Industry
Home » News

Carnival inks 12-year deal with Wartsila, targets fuel savings

Wartsila to handle all engine maintenance and monitoring work for 79 of Carnival's ships.

Image credit:

Updated on 25 Jan 2017 12:06 GMT

Wartsila and Carnival Corporation & plc announced on Wednesday that they have signed a 12-year agreement for Wartsila to handle all engine maintenance and monitoring work for 79 of Carnival Corporation's vessels.

The value of the long-term agreement is approximately EUR 900 million. The expected revenues for 24 months, approximately EUR 150 million, are to be included in Wartsila's order book for the first quarter of 2017. As the contract becomes effective as of 1st April, Wartsila's expected revenues for 2017 from the contract are EUR 56 million.

The deal includes Wartsila's Dynamic Maintenance Planning (DMP) and Condition Based Maintenance (CBM). These services are based on capturing digitalised data streams from every engine, after which this data is analysed by specialists. This is designed to provide real-time optimisation of the equipment while predicting operational and maintenance demands. With the DMP and CBM in place, vessel and fleet operations are optimized and engine overhaul intervals potentially extended.

With approximately 400 Wartsila engines covered under the agreement, the Finnish manufacturer points out that even the smallest improvements in vessel fuel consumption can add up to significant annual savings in fleet operational costs.

"Potential savings in fuel costs are counted in tens of millions of dollars per year," Wartsila said.

"Our agreement with Wartsila extends our cooperation to a strategic partnership," commented Bill Burke, Chief Maritime Officer for Carnival Corporation. "With Wartsila maintaining vessels under our agreement and ensuring a high level of safety and reliability, we can concentrate on our core priority - providing great cruise vacations for our more than 11 million annual guests. In addition to reducing our costs, the long-term agreement increases safety and operational efficiency - two critical advantages in the fast-growing cruise market."

The long-term performance-based agreement model is designed to provide predictability of costs and incentives for both companies as remuneration is based on how the equipment performs, with the companies sharing exposure based on outcomes. Wartsila believes the strategic partnership encourages increased focus on research and development, manufacturing and other functions to make its products even better and more efficient.

"We are very excited to develop our long-term partnership into a more strategic direction. Both Wartsila and Carnival Corporation are committed to investing significantly in this partnership as well as to develop our cooperation in the long run. We are confident that working closely together, we can improve performance in both organisations," remarked Pierpaolo Barbone, President, Services & Executive Vice President, Wartsila Corporation.

Wartsila stresses that further improvements in energy efficiency will be a significant focus area within the agreement and a key driver for the cooperation between the two firms. Engine efficiency and fuel consumption are to be measured on a regular basis, with improvements to fuel efficiency based on continuous monitoring and data analysis.

Related Links:

Carnival's bunker costs drop 27% in 2016, expects $315m rise next year
Shell signs deal with Carnival to supply world's first fully LNG-powered cruise ships
Carnival's Q3 bunker costs drop 23.2%
Carnival orders three LNG-powered cruise ships
Carnival's bunker business at Port Everglades secure until 2030

Latest News:

Oil and fuel oil hedging market update
Singapore records best ever October bunker sales; YTD volume down 1%
Oil trading below $70 after highly volatile start to week
Genoil lowers fuel sulphur content in latest processing run
Aegean staff have been relying on compensation and benefits to support families: EY
Higher bunker prices help push up Hanwa's overseas revenue
Aegean doesn't have a centralized accounting system: EY director
Oil and fuel oil hedging market update
Brent heads back upwards after breaking below $70 on Friday
Aegean's proposed bidding process revealed
Aegean proposes bidding timeline as Mercuria offers $681m
Genco to decide on scrubbers for 15 bulkers by early 2019 - 'if not before'

Page Links:

Latin America
Middle East
North America
North Europe
South Europe
Index Summary
Price Highlights
Las Palmas
New Orleans
Rio de Janeiro
Latest News
Middle East
Air Pollution
Agreements & M&A's
Alternative Fuels
Cargoes & Storage
Efficiency, Costs & Charges
Fuel Quality
Lubes & Additives
Oil Spills
Port News
Services, Products, Technology
Statistics & Research
Contact & Terms
Contact Us
Terms & Conditions
Privacy Policy
Upcoming Events