In a major setback for the cruise industry, the collapse of the Francis Scott Key Bridge in Baltimore has forced Carnival and Royal Caribbean to alter their cruise routes and temporarily dock at alternate ports. Carnival has revealed that the bridge collapse could lead to a $10 million loss in earnings for 2024.

Carnival chief, Josh Weinstein, informed investors during the company's first-quarter earnings call that their ships will now be docking in Norfolk, Virginia, as they are unable to access their Maryland port. This temporary arrangement is expected to minimize operational disruptions, according to The Wall Street Journal.

The Carnival Legend ship, which set sail for a seven-day Bahamas cruise on Sunday, had to alter its course due to the bridge collapse. Instead of returning to Baltimore as planned, it will now conclude its trip in Norfolk, with guests being provided complimentary bus services back to Baltimore, as stated in a press release by the company. The next scheduled voyage on March 31 will also operate out of the Virginia port, with guests informed of the change.

Despite the significant impact on earnings, Carnival has not yet factored the $10 million hit into its full-year adjusted profit guidance. The company had previously raised its adjusted profit guidance marginally to $5.63 billion for 2024, up from the initial estimate of $5.6 billion. Analysts had projected adjusted earnings of $5.64 billion.

The Port of Baltimore, previously hailed as the nation's best port and a major economic generator for Maryland, reported that over 444,000 passengers cruised out of the port in 2023. The cruise business has been experiencing growth post-pandemic with Carnival's stock surging over 95% in the past year.

Meanwhile, Royal Caribbean, which is also scheduled to return to Baltimore on April 4, has not commented on how the bridge collapse will impact its operations. The company has stated that it is closely monitoring the situation as the Vision of the Seas ship is set to return from its 12-night Caribbean voyage.

Royal Caribbean has managed to erase most of its pandemic losses and reported a 40% increase in pre-cruise revenue bookings for March 2024 compared to the same period in 2023. The cruise line's port logistics team is actively working on alternatives for the ongoing and upcoming sailings from Baltimore.

Both Carnival and Royal Caribbean expressed their commitment to monitoring the situation closely. Carnival's spokesperson mentioned that their team is actively working to secure a temporary homeport in Baltimore as soon as possible.

As the investigations into the bridge collapse continue, the cruise industry faces the immediate challenge of finding alternative solutions to ensure smooth operations and minimize disruptions for passengers.