904 356-JOBS (5627)

904 356-JOBS (5627)

JaxPort board approves contract extension with Carnival (Courtesy of the Jacksonville Daily Record) — A month after the Jacksonville Port Authority landed a second cruise line, the JaxPort board approved a contract extension with the company that has provided cruise service from Jacksonville since 2004.

The revised agreement with Carnival Cruise Line will keep the company in Jacksonville through 2026 and includes renewal options that extend through 2030. Carnival’s agreement was set to expire May 31, 2025. 

“The cruising market is hot (and) Carnival is bullish on Jacksonville,” Nick Primrose, JaxPort chief of regulatory compliance, told the board March 25.

The contract extension is on the heels of the board’s Feb. 6 approval of a deal with Norwegian Cruise Line to operate its Norwegian Gem cruise ship from JaxPort beginning in November 2025. 

Eric Green, JaxPort CEO, said the contract extension was a product of ongoing conversations between the port and Carnival. Despite questions about whether Carnival would react adversely to the Norwegian deal, Green said he was unconcerned. 

“It works best for both of them to have Carnival and Norwegian here,” he said. “They actually share equipment at some other ports and things of that nature, so there are some economies of scale for them.”

Green likened the two cruise lines to competing fast-food restaurants that offered similar types of food but different menu options. 

“I’d say Carnival is more geared toward the family experience. Norwegian may be a little bit more of the adult-driven experience,” he said. “So I think it’s great for the market, and I think it’s great for both of them.”

Green said Carnival “brought us to the dance” as a cruise port. 

“We’re not leaving them,” he said. “And I think Carnival enjoys the market we’re in. You can see that from the number of folks who are sailing. Based off the size of the ship, it’s over 100%.”

Carnival Cruise Lines’ Elation, which holds about 2,400 passengers, is now the only ship sailing from JaxPort’s Cruise Terminal. Carnival offers four- and five-day Caribbean cruises year-round from Jacksonville, according to JaxPort’s website. 

JaxPort’s agreement with Norwegian, which extends through 2028, calls for Norwegian to pay an annual guarantee of $1.61 million, for a total of $4.85 million over the contract term. JaxPort committed to prepaying a $2.74 million trademark licensing fee to Norwegian by the end of 2024.

Norwegian plans to offer cruises from Jacksonville to the Bahamas and Eastern Caribbean. The Norwegian Gem holds 2,394 guests. 

Green said the Cruise Terminal’s parking lot would be configured to provide each cruise line with designated parking for its passengers, with each lot being at an equal distance to the boarding area. He said no major improvements to the terminal are planned. 

According to JaxPort, more than 3 million passengers have sailed from Jacksonville during Carnival’s 20 years of cruise service. The cruise industry supports nearly 800 jobs and more than $187 million in annual economic impact for Northeast Florida.

“The continued growth of our cruise program is another way we create jobs and economic impact for our region and state,” Green said in a March 25 news release. “JAXPORT has a longstanding partnership with Carnival, and we are grateful for their commitment to serving Jacksonville and providing even more reasons for tourists to visit our great city.”