5706 - Stupid Money

From the shipyard to the scrap yard. "Stupid money" in action.

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"The plans to launch Global Dream II, one of the world's largest cruise ships, have been scrapped after its builders filed for bankruptcy earlier this year. The hull of the ship will make its maiden voyage to the scrapyard, The Guardian reported. 

A cruise ship is a world within itself, and while passengers enjoy all life's luxuries on these massive feats of engineering, the construction is a process that goes on for years. During this period, priorities can change, or the world can be caught up in a big economic downturn that even forces the abandonment of Titanic's bigger sister. 

Global Dream II was also caught in the midst of one such global phenomenon - the COVID-19 pandemic - and while the hull of the ship was complete with engines and other mechanical systems, its builders could not stay afloat until the cruise ship was completed. 

The Global Class

At a length of over 1,100 feet (340 m), the cruise ship is now scrapped and belongs to the Global Class of giant ocean ships. According to The Guardian, this is the second-largest class of ocean ships, just behind the Oasis-class ships from Royal Caribbean Cruises.

On their website, the makers of this class of ships, MV Werften, claim that the ships have 2,500 passenger cabins along 20 decks and can accommodate up to 9,000 passengers during the peak holiday season. Designed to be used in the Asian markets, this class of cruise ships boasts amusement parks, theatres, restaurants, shopping malls, cinemas as well as sports facilities onboard. 

MV Werften's plans also included the use of artificial intelligence (A.I.) for many customer-facing services while also using facial recognition systems to minimize queueing, making it the most technologically advanced cruise ship on the planet, the website claims.

The Global Dream II, the first of its class, was scheduled to leave the shipyard in 2021, but when the pandemic struck, the demand for cruises collapsed. 

Voyage to the scrapyard

In January 2022, MV Werften filed for bankruptcy, and the administrators began looking for options to monetize the shipbuilder's assets. The shipyard was sold to ThyssenKrupp's Marine System, which plans to build submarines, frigates, and corvettes at the site starting in 2024, An Bord, a German industry magazine, reported. 

Prior to that, the shipyard needs to be vacated. Global Dream II is partly constructed, with its hull complete with engines. The insolvency administrators are looking to sell the engines and machine parts, after which the hull will be sold at scrap value. 

Global Dream is quite ready and can be tugged away. However, since it is built for the Asian markets, the cabin, deck, and propulsion system will require considerable changes before it can be used in Europe or North America, a move that will require more investments into the ship, An Bord said in its report.

The administrators have set a price for Global Dream II to cover the guarantees owed to local governments. If the price can't be met, the insolvency proceedings dictate that the administrators prepare for an auction, which will also see ship recyclers enter the process. Global Dream's first voyage would then be to a scrapyard."