Topline

The Royal Caribbean Group will be allowed to restart cruises from the U.S. in a limited capacity starting in June, making the company the first to win CDC approval to enter a testing phase in the hopes of resuming full sailings.

Key Facts

The company will be able to start running simulated cruises with volunteer passengers on its Freedom of the Seas ship, based in PortMiami, starting on June 20, the Department of Health and Human Services said in a letter to Royal Caribbean President Michael Bayley.

The cruises will mark the first to sail from a U.S. port since March of 2020, when coronavirus lockdowns started in the United States.

CDC guidance calls for simulated cruises of at least three days and two nights, with at least 10% of normal passenger capacity and social distancing required during meals, entertainment and excursions to best replicate a normal cruise.

The CDC also requires passengers to either show proof of full vaccination or give a statement attesting they're not at high risk for developing a severe Covid infection.

Royal Caribbean says on its website all passengers 16 and older will be required to show proof of vaccination.

What We Don't Know

It's not clear how vaccination requirements, for simulated cruises or otherwise, will be enforced in Florida. Gov. Ron DeSantis (R) signed an executive order last month banning businesses and governmental bodies in the state from requiring proof of vaccination, also called a vaccine passport.

What To Watch For

Ships are required to provide an assessment and point out any deficiencies after a simulated cruise, at which point they can apply for a conditional sailing certificate. If granted, which will come on a ship-by-ship basis, that will allow for a restart of large passenger cruises. But cruise companies aren’t waiting for final approval when it comes to the booking process, with all of the large cruise lines accepting bookings for trips this year.

Key Background

Cruising hasn't taken place from U.S. ports since March 14, 2020, after cruises became some of the country's earliest coronavirus hot spots. The cruise industry then became one of the hardest-hit sectors of the U.S. economy. But stock prices have steadily recovered over the past year, even as cruise lines suffered billions in losses. Tuesday was a particularly good day for the major cruise companies, with Carnival's stock rising more than 2.4%, while Royal Caribbean and Norwegian Cruise Line's stock both shot up over 3.5%.

Tangent

Outside the U.S., cruises are set to restart within weeks from popular destinations like Greece and the Caribbean.

Further Reading

Florida Gov. Ron DeSantis Bans Vaccine Passports Amid GOP Pushback (Forbes)

Cruise lines can apply to sail with volunteer passengers after new CDC guidelines (Orlando Sentinel)

Royal Caribbean gets first CDC go-ahead for test cruises from Miami in July (Miami Herald)