Challenging economic conditions in several countries have pushed freight shipping companies to look for additional sources of revenue in addition to the revenue generated by hauling freight
across the ocean. In recent years, one additional source of revenue for these freight companies
has been to take on cruise passengers in addition to regular cargo.
Generally, there are only 2 – 12 passengers on a cargo ship. Demand for cargo ship cruises is
high; travelers need to book months in advance.
Typically, passengers taking a cruise on a cargo (or container) ship will get an air-conditioned
room with private bathroom for about $115 per day. Meals are included; passengers will share
three meals a day with the crew. The rooms are cleaned once a week by the ship’s steward.
Passengers have to wash their own clothes. Entertainment options include walking or running
on deck, playing ping pong or darts, watching or listening to CDs/DVDs, and swimming in the
on-ship pool if available on that particular ship. Passengers can disembark at various ports for
sightseeing. Typically, a ship makes a 12 – 24 hour stop at each port on its itinerary for the
loading and unloading of freight.
International regulations dictate that ships carrying more than twelve passengers have an onboard physician and a small hospital or treatment center. (Crew members, of which there are
usually 15 – 25 per freighter, are not considered passengers.)
4. What costs might be variable with respect to passengers carried on a cargo ship?
a. Cargo fuel, salary of the captain, salary of the crew members
b. Cost of meals, cost of toiletries, ping pong balls
c. Salary of the physician, salary of the crew members, cost of meals
d. Pool depreciation, salary of the crew members, cost of meals.
5. Should the ship depreciation costs be allocated to the cost of a passenger cruise when
pricing the passenger cruise?
a. Yes
b. No