Independance OTS inpounded by Pt Authorities

[Lanwood]

Was reading in the Travel Daily that the RCCL Independance of the Seas was seized by Tax Authorities in Norway for not paying their Bills for Pilot Fees totalling around AUD$108,801. The ship was refused to leave port for about an hour until head office paid the bill. The authorities have not ruled out seizing other ships to chaise up unpaid monies from other cruise lines....

 

I wonder how often this actually goes on. I find it suprising that bills are going unpaid with the billions they are making in profits, prior to shareholder dividend dispersements. They shouldn't have cash flow problems given that we pay for our cruises in advance (and deposits well in advance in many cases), and all the nickle and diming is settled prior to dissembarkation......??? I wonder if the Oasis OTS 3 and 4 has anything to do with it?? are they a bit over their heads I wonder??

Edited May 29, 2014 by Lanwood

[Fletch1]

That's very interesting. I have never heard that before. Perhaps that explains why some ships I have been on are delayed in port for no apparent reason!!!

[The_Big_M]

It was discussed on the RCL forum a couple of weeks back.

 

The impression I got is that it was a mistake, not part of a deliberate pattern of not paying.

 

Also, if you check their financial results, they're doing well enough of late, such that they don't need to skip payments.

[KarateMan]

It does happen a lot. If I recall South Africa did the same to one of the P&O ships be it Oriana for a debt incurred by QM2. Their rationale was that they are part of the same company. There were reports of warnings sent to the ship beforehand that it would be arrested if it arrived.

 

It could just be administrative mistakes of the invoice not getting to the right person or it could be a deliberate attempt to delay payment until as late as possible.

 

I know some people wait until the due date to pay their bills opposed to paying them up front.

[Flipper133]

These Port Charges are paid by passengers as part of their fare.

Essentially the cruise lines are holding the money "in trust"...not unlike a lawyers Trust Account.

Trouble is with the cruise lines there is no accountability.

It wont happen in the States.... there would be law suites raised by passengers quick smart :D

[MicCanberra]

Interesting, it goes to show that even corporations have to pay there bills or there will be ramifications.:D

[The_Big_M]

They get the funds in advance, but there's nothing wrong with that. It's the model of many companies, like insurers and supermarkets. Get paid, before they need to pay for whatever you're buying.

 

As long as they're able to pay, and it's not a pattern, so all seems to be okay here - though of course, embarrassing.

[mr walker]

I find it suprising that bills are going unpaid with the billions they are making in profits, prior to shareholder dividend dispersements.

 

A recent discussion on the RC board

http://boards.cruisecritic.com/showthread.php?t=2031420&highlight=profit

actually discussed how little profits were being made. The company results showed quite a small profit ($26M) for last quarter & granted there were some extraordinary reasons for that particular quarter. But on reported results they are sure not making billions.

 

And as others have said here, the non payment re IOTS was not due to RC not having the money to pay, but some mix-up.

 

Happy cruising

[MicCanberra]

A recent discussion on the RC board

http://boards.cruisecritic.com/showthread.php?t=2031420&highlight=profit

actually discussed how little profits were being made. The company results showed quite a small profit ($26M) for last quarter & granted there were some extraordinary reasons for that particular quarter. But on reported results they are sure not making billions.

 

And as others have said here, the non payment re IOTS was not due to RC not having the money to pay, but some mix-up.

 

Happy cruising

Technical and Communication hiccups happen all the time, especially between differing national entities.:D

[Lanwood]

Technical and Communication hiccups happen all the time, especially between differing national entities.:D

 

Yeah - that's one of the points I was drawn to in this weeks article. That they will not rule out taking the same action to chaise up monies owed from other cruise lines, - would infer that it is happening more frequently than once.

 

Obviously anything we discuss on the topic is guessing or conjecture etc, but its still an interesting topic for a thread....

[Lanwood]

A recent discussion on the RC board

http://boards.cruisecritic.com/showthread.php?t=2031420&highlight=profit

actually discussed how little profits were being made. The company results showed quite a small profit ($26M) for last quarter & granted there were some extraordinary reasons for that particular quarter. But on reported results they are sure not making billions.

 

And as others have said here, the non payment re IOTS was not due to RC not having the money to pay, but some mix-up.

 

Happy cruising

 

Sorry - I'll correct my OP to be "given the Millions they are making".

 

But the article's paragraph sticking in my mind is that other cruise lines have made the same "mix-up". It sews the seeds of doubt in one's head. And raises some thoughts that are some cruise lines bitting more that they can chew??

[MicCanberra]

Sorry - I'll correct my OP to be "given the Millions they are making".

 

But the article's paragraph sticking in my mind is that other cruise lines have made the same "mix-up". It sews the seeds of doubt in one's head. And raises some thoughts that are some cruise lines bitting more that they can chew??

With the amounts of money involved, I would imagine the accounts department would have strict policies on collecting (money) as much as possible up front and paying (bills) at the last possible moment. This money can then be used to generate income as well as be used as a running capital. It is smart business but does get companies stuck occasionally.

[Lanwood]

With the amounts of money involved, I would imagine the accounts department would have strict policies on collecting (money) as much as possible up front and paying (bills) at the last possible moment. This money can then be used to generate income as well as be used as a running capital. It is smart business but does get companies stuck occasionally.

 

And there looks to be a fair bit of capital being invested over there....hmmm

[Team Alpha]

Remember there's a difference between profit and cashflow. A business can be very profitable but have poor cashflow. This can be caused for a few reasons but particularly because not all payments are tax deductible eg. principal repayments on debt. And these companies would have significant debt for their ship construction.

[Kiwi Kruzer]

And there looks to be a fair bit of capital being invested over there....hmmm

 

Its a huge world of mega finance out there. Some of the sums involved are way beyond comprehension.

Just as an aside ...have you ever noticed that when a new ship is christened , standing alongside or not far away is Prince Michael of Monaco ??? .:rolleyes:

 

[MicCanberra]

Its a huge world of mega finance out there. Some of the sums involved are way beyond comprehension.

Just as an aside ...have you ever noticed that when a new ship is christened , standing alongside or not far away is Prince Michael of Monaco ??? .:rolleyes:

 

Never noticed, what is the connection.:confused:

[Lanwood]

Its a huge world of mega finance out there. Some of the sums involved are way beyond comprehension.

Just as an aside ...have you ever noticed that when a new ship is christened , standing alongside or not far away is Prince Michael of Monaco ??? .:rolleyes:

 

:D - Is that really true..?

[Kiwi Kruzer]

Never noticed, what is the connection.:confused:

 

:D - Is that really true..?

 

Well someone , or some group , has to finance the building and the ownership of the new ships.

Finance is more often than not traced back the tax free haven on Monaco.

The cruise lines dont "own" the ships, they just lease them or mortgage them to the hilt.

 

 

[fanoforion]

Its a huge world of mega finance out there. Some of the sums involved are way beyond comprehension.

Just as an aside ...have you ever noticed that when a new ship is christened , standing alongside or not far away is Prince Michael of Monaco ??? .:rolleyes:

 

 

Hi Kiwi, do you mean Prince Albert of Monaco...???

 

kind regards, Lorraine :):)

[MicCanberra]

Hi Kiwi, do you mean Prince Albert of Monaco...???

 

kind regards, Lorraine :):)

Probably, as these are the current monarchy players. Albert II is currently ruling.:D

Albert II

1958 - 2005 - present

Caroline, Princess of Hanover

b. 1957

Princess Stéphanie of Monaco

b. 1965

Edited May 30, 2014 by MicCanberra

[The_Big_M]

Hi Kiwi, do you mean Prince Albert of Monaco...???

 

kind regards, Lorraine :):)

 

Hope so, I was trying to work out who Prince Michael was!

[MicCanberra]

Hope so, I was trying to work out who Prince Michael was!

 

Michael Jackson's son ???

[Kiwi Kruzer]

Hi Kiwi, do you mean Prince Albert of Monaco...???kind regards, Lorraine :):)

 

OOPS . Yes I got my Princes mixed up. :D

[MicCanberra]

OOPS . Yes I got my Princes mixed up. :D

 

Never mind, I always thought a Prince Michael is better than a Prince Albert anyway.;)

[The_Big_M]

Oh dear.