Already, the business, International Cruise Food and Hotel Suppliers Inc., has seen a 10 percent drop in sales, about $10 million, after the food he supplies to cruises departing from southeast Asian and European ports was refused by cruise companies that had canceled planned sailings.
“They are basically rerouting all those containers that were already at sea or about to leave,” said Dallow, who’s led International Cruise Food since 2012. “Obviously, you know, we’re going to feel that … we’re going to get hurt, because those are orders that have basically been canceled.”
Deepening the blow to companies like Dallow’s, four major cruise lines, Viking, Princess, Royal Caribbean and Norwegian have announced that they are halting all trips. Princess, one of ICFH’s clients, suspended operation of its 18 ships through May 10. Royal Caribbean and Viking said Friday their suspensions will last until mid-May.
Even for the cruise lines among Dallow’s clients that remain operational, priorities have shifted. Dallow is now working to ensure that ships have extra nonperishable food stocked on board in the event a vessel is not allowed to dock “for unplanned events or being denied entry into ports,” he said.
Dallow added that his company has drawn up contingency plans to make sure he can stay in business for a prolonged period. He’s increased the company’s line of credit and has lined up third-party distributors in the event ICFH cannot fulfill an order or shipment.
According to the Cruise Lines International Association, the industry employs about 422,000 jobs in the United States, a third of which are based in Florida.
“We do have insurance for business interruption and all that, but for how long is it going to be able to cover?” Dallow said.