After nearly a century of operations P&O Cruises Australia is shutting its local operations

After almost a century of operations, the world’s largest cruise company will shutter part of its Australian operations.

After nearly one century of operations, the world’s largest cruise company, Carnival Corporation, said it would shut part of its local Australian operations due to high port charges and the difficulty of obtaining berths, particularly in Sydney.

No other world ports will be affected by the decision.

The move, from next March, will see the P&O Cruises Australia brand folded into the Carnival Cruise Line brand, with the Pacific Explorer to exit the fleet.

The Pacific Encounter and Pacific Adventure ships will begin sailing under the Carnival Cruise Line brand.

“ … Given the strategic reality of the South Pacific’s small population and significantly higher operating and regulatory costs, we’re adjusting our approach to give us the efficiencies we need to continue delivering an incredible cruise experience year-round to our guests in the region,” said Carnival chief executive Josh Weinstein in a statement.

A P&O Pacific Explorer docked at Port Lincoln.

“Carnival Corporation … remains committed to Australia and we will continue to be the largest cruise operator in the region with 19 ships calling on 78 destinations and representing almost 60 per cent of the market,” Mr Weinstein said.

Cruise operators have long been beleaguered by high berthing charges and an inability to get a berth at Sydney’s Overseas Passenger Terminal, while the second berthing option at White Bay cannot service larger liners because they cannot get under the Sydney Harbour Bridge.

Various efforts to berth ships at Garden Island have been rejected by Defence.

Some new entrants, such as Virgin Voyages, have sought to circumvent Sydney’s expensive port charges and have home-ported out of Melbourne, but have cut their seasons short.

There will be no changes to the other Carnival Corporation ships operating in Australia, which include Princess Cruises, Cunard, Holland America Line and the up-market Seabourn.

Ziplining across the deck on Pacific Encounter. Picture: P&O Cruises Escape

Carnival Corporation added all guests with bookings on Pacific Explorer, which is leaving the fleet in February, 2025, would be notified Tuesday. It also added some Pacific Encounter and Pacific Adventure itineraries would be impacted as “we transition into Carnival Cruise Line operations”.

Carnival said current itineraries will operate business as usual, and passengers would be notified shortly of any changes to future bookings.

The Cruise Lines Industry Association, which represents all major cruise lines, declined to comment.