CDC Lifts No Sail Order; Royal Caribbean, Carnival, Norwegian Climb

The CDC lifted its no-sail order but cruise lines will go through a phased reintegration before they can resume voyages.

Author:: Tony Owusu
Publish date:: Oct 30, 2020 3:34 PM EDT

Cruise stocks Royal Caribbean (RCL) - Get Report, Carnival (CCL) - Get Report and Norwegian Cruise (NCLH) - Get Report got a boost Friday after the Centers for Disease Control and Prevention released the framework for resuming cruise ship operations in the U.S.

The CDC says it will take a "phased approach" to resuming cruise ship operations in U.S. waters once the current No Sail Order expires on Oct. 31.

The initial phases of the reintegration will consist of implementing safeguards for crew members, with the CDC ensuring ship operators have enough protective equipment for the crews.

The next phases will require ship operators to build the laboratory capacity needed to test passengers for covid-19.

Next, the cruise lines will conduct simulated voyages to test ship operators' "ability to mitigate covid-19." If they pass those tests, ships will then receive certification to resume voyages.

The CDC, which is part of the Department of Health and Human Services, first issued the order on March 14. The agency extended it in April, July and September as it said cruise ship travel "may continue to introduce, transmit, or spread" the coronavirus.

Shares of Norwegian at last check rose 6.2% to $16.59 while Royal Caribbean jumped 3.5% to $55.71 and Carnival gained 6.6% to $13.84.

The cruise lines have dropped sharply since March, with Norwegian falling 70% year to date, Royal Caribbean falling nearly 60% and Carnival dropping 75%.