Royal Caribbean Secures Shipbuilding Capacity Through 2036 with €1B+ Meyer Turku Order

Event summary

  • Royal Caribbean Group has ordered two additional Icon Class ships (Icon 6 and 7) from Meyer Turku shipyard.
  • Delivery of Icon 6 is expected in 2029, with Icon 7 slated for 2030.
  • The order secures Royal Caribbean Group's shipbuilding capacity with Meyer Turku through 2036.
  • Meyer Turku and its network contribute over €1 billion annually to Finland's economy.
  • This order follows a long-standing partnership spanning over three decades and 25 ships built.

The big picture

Royal Caribbean Group's commitment to the Icon Class and its long-term partnership with Meyer Turku underscores its aggressive growth strategy in the cruise sector. Securing shipbuilding capacity through 2036 demonstrates a confidence in future demand and a willingness to invest heavily in innovation. This move also reinforces Finland's position as a key shipbuilding hub, with significant economic implications for the region.

What we're watching

Financing Risk
The order is contingent on securing financing, which could be impacted by rising interest rates and broader economic conditions, potentially delaying or altering the build schedule.
Shipbuilding Costs
Given the scale of these projects and ongoing global supply chain disruptions, cost overruns at Meyer Turku could pressure Royal Caribbean’s margins and necessitate price increases for cruises.
Fleet Composition
The continued focus on Icon Class ships signals a strategic bet on larger, more amenity-rich vessels, which may exacerbate capacity imbalances within the cruise industry and impact pricing power for smaller competitors.