Spring is when many passenger vessel operators gear up after a long winter hiatus. With that comes numerous factors influencing pressing financial and operational decisions.
Managing increasing costs has always been a challenge, but now it is worse than ever. Nearly everything in the marine industry, from parts to electronic equipment, costs more and takes significantly longer to procure. Maintenance has always been a major expense, but operators today cannot afford to stockpile inventory, as tying up cash on storeroom shelves creates additional financial strain.
Marine insurance can also be unpredictable and is often very expensive. Even operators with favorable loss histories are finding that premiums continue to rise. Many point to global catastrophic events as contributing factors.
Food costs are also on an unsustainable upward trajectory for those of us who operate dinner cruise vessels. Nearly every food item costs more while customer pricing has only so much elasticity. Portion control and waste management have become critical factors in running our businesses efficiently.
Hiring employees, especially mariners, remains a concern. Many young people we hire lack basic workplace skills, and finding qualified mariners continues to be a struggle, due in part to an apparent lack of interest in maritime careers. At BB Riverboats, we train and promote from within, but finding people who meet basic work expectations is a challenge.
Finally, government regulation at all levels remains a burden. Coast Guard inspector skill levels vary by region, and the resources needed to manage a complicated marine transportation system seem to have diminished. Compounding this, many government officials lack an understanding of how their policies and decisions impact our businesses. Educating regulators about the nuances of operating commercial passenger vessels is a constant challenge.
Despite all of this, I remain optimistic about the outlook for the passenger vessel industry in the coming months. Demand is strengthening, sales are expected to increase, and operators are preparing for a period of greater activity and opportunity.
