Royal Caribbean has signed a letter of intent with German shipyard Meyer Werft to build the cruise line its newest ship, a 4,100-passenger, 158,000-ton ship with an expected delivery of fall 2014.

The order is for one ship with the option of a second ship that would be delivered for Spring 2015.

"This next generation will not disappoint," said Richard Fain, chairman and CEO of Royal Caribbean's parent company Royal Caribbean' Cruises, Ltd., in a statement. "It will offer features for everyone," Fain said. "From grand, spectacular spaces to small intimate settings; from active, invigorating activities to the serenity of more personal space; and from a plethora of dining alternatives to a cornucopia of opportunities for families."

The new ship class is being called "Project Sunshine" until a formal name for the new class is decided upon.  

This new ship will be the first of a new class, although its size is very similar to the Freedom Class ships, which are slightly larger (158,000 tons for Project Sunshine vs 160,000 tons for Freedom).

Royal Caribbean Cruises, Ltd. has signed a letter of intent with shipyard Meyer Werft to build the first of a new generation of Royal Caribbean International cruise ships. Developed under the code-name "Project Sunshine," the new vessel design incorporates new and exciting features that take advantage of the best of Royal Caribbean's experience and imagination. The project is a result of over a year of dedicated research and development.

The order calls for one ship to be delivered in the Fall of 2014 with an option for a second ship for Spring 2015. The 158,000 Gross Registered Tons (GRT) new build will carry just over 4,100 guests based on double occupancy. The estimated all-in cost per berth is about euro 170,000. This all-in cost includes the yard's base contract price plus everything needed to design, operate and build the vessel, from architect fees to supervision costs and all loose inventories from computers to art and bed linens.

"Royal Caribbean has worked hard to earn a reputation of offering the most innovative ships in the cruise industry and this next generation will not disappoint," said Richard D. Fain, Chairman and CEO of Royal Caribbean Cruises, Ltd. "While we continue our policy of keeping our newest ideas and features under wraps during the early stages of construction, I can say that I am very excited about the passion and imagination that our teams have devoted to the project. Project Sunshine builds on the best ideas of our existing ships and adds exciting new activities and entertainment concepts. It will offer features for everyone: from grand, spectacular spaces to small intimate settings; from active, invigorating activities to the serenity of more personal space; and from a plethora of dining alternatives to a cornucopia of opportunities for families. I am also excited about the energy efficiency and environmental technologies which have been incorporated. Our existing ships are some of the most energy efficient in the world and Project Sunshine takes this one further step. Based on our over 20 years of experience with Meyer Werft, along with their compelling proposal, we know they will deliver on all of the innovations Royal Caribbean's guests have come to expect."

"Meyer Werft is pleased to be working with Royal Caribbean especially in light of their reputation for building such innovative ships. I am very happy we are continuing our long time partnership with Royal Caribbean Cruises Ltd. and its brand Royal Caribbean International. Their projects always present incredible opportunities for Meyer Werft to create the latest cutting edge hardware in the cruise industry," said Bernard Meyer, managing partner of Meyer Werft shipyard.

The letter of intent is subject to customary conditions being satisfactorily met.  

Due to the civil unrest in Egypt, Royal Caribbean has become the latest cruise line to stop port calls to this ancient land.  Royal Caribbean wasn't scheduled to have a ship stop in Egypt until April but has decided to eliminate all scheduled calls there through June 2011.

Instead of making a stop in Alexandria, Egypt, Mariner of the Seas that depart from Civitavecchia, Italy will now stop in Istanbul or Istanbul and Kusadasi, Turkey, depending on the sailing.

In addition, Royal Caribbean has canceled every stop along the Red Sea for Brilliance of the Seas voyages out of Dubai on April 12.  Brilliance will increase its days at sea to nine days after it eliminates three port days in Egypt and Aqaba, Jordan.

Royal Caribbean is close to finalizing plans to send three of its cruise ships back to Australia for the 2012/2013 cruise season.   Royal Caribbean managing director for Australia, Gavin Smith, said he is certain that Royal Caribbean will have three ships in Australia.

The decision was easy to make after strong bookings for the 2011/2012 seas have made Rhapsody of the Seas, Radiance of the Seas and Celebrity Century quite popular.  It's expected that all three ships will return for the following season to build upon its success down under, so far.

Smith said adding more ships to the area this year has created challenges, but nothing Royal Caribbean cannot handle, “The pressure is maintaining strong forward booking patterns to give the company confidence that they can continue this level of deployment. The continued success of our deployment and our pricing gains us confidence with the parent company. They are continuing to support our operation with the required level of investment. Without question we will have three ships in Australia in 2012/13 and have made the port bookings."

Smith expects to have the plans for Australia in 2012/2013 finalized by March.

Royal Caribbean's Independence of the Seas, the sister ship of the third and final Freedom class ship, is calling the port of Livorno, Italy home for the second time during the 2011 cruise season.  Independence will alternate eastern and western Mediterranean cruises, sailing from Southampton in the UK.

In the 2011 season, there are 12 ships calling at Livorno. After Independence of the Seas, will support in the Tuscan port the other ships of the fleet, the first stop will be to Liberty of the Seas April 27, will then be the turn of Brilliance of the Seas May 9, Voyager of the Seas 17 May, Adventure of the Seas May 18, Grandeur of the Seas July 27, and Navigator of the Seas November 7 and Navigator of the Seas November 7. 

"Always the port of Livorno, the company has for a role of primary importance - says Lina Mazzucco, general manager of Royal Caribbean Italy. "We were able to significantly increase the scale of the fleet which become 91 against 79 last year. Similarly, increases the flow of passengers, who went from 227,000 in 2010 to over 323,000 in 2011. "

Royal Caribbean Vice President of Commercial Development John Tercek is encouraging Jamaicans to work harder in the development of the new cruise port at Falmouth in Jamaica.

Falmouth is a joint venture between Royal Caribbean and the Port Authority of Jamaica, but the project has been delayed quite a bit from it's initial plans.  Tercek's call to action is a response to Royal Caribbean's desire to complete the project.

Speaking at the Stocks and Securities Limited investors forum on Tuesday, Tercek was giving a speech on the topic: 'Falmouth and the cruise-ship pier'.  When asked why Jamaica was not realizing its potential in the sector, Tercek responded , "Jamaicans are very good at talking and they are not so good at action. We try to take the initiative. We try to show up, not as talkers but as doers. We are putting a lot of money into the town. We made a lot of commitments to the town and to Jamaica."

"We have been trying to be a catalyst. We can't do it all - we can't restore, rehabilitate ... all of the town (Falmouth). We can do our project. We can bring our guests. We can make further investments into the town, and we are doing all of that ... but it is going to take a lot of initiative, not only from the Government," Tercek said, pointing out that all parties involved will have to take part.

Delays at Falmouth have caused cruise ships to cancel calls to the port.  Royal Caribbean's Navigator of the Seas had been scheduled to make its maiden call at the port back on January 7 burt was forced to cancel. 

The updated schedule has Voyager of the Seas arriving on February 17, followed by Oasis of the Seas in March.

Royal Caribbean has struck a deal with European low-cost carrier Norwegian Air Shuttle to fly about 8,000 Royal Caribbean guests to a number of destinations in the Mediterranean during the upcoming summer season.

As part of the deal, Norwegian Air Shuttle will transport cruise passengers from Copenhagen, Stockholm and Oslo to Malaga, Barcelona, Palma, Rome and Venice.

"We are very happy with the contract with RCCL. Cruise passengers have high requirements for comfort, which we can satisfy with our many new planes," Norwegian Air Shuttle sales director Lars Sande said.

No other American cruise line has been targeting the European cruise market as aggressively as Royal Caribbean and it sounds like its efforts are paying off with sales spiking upwards.  Royal Caribbean says the increase in its ships in Europe and the Mediterranean has resulted in boosting its sales for the United Kingdom and Ireland segment of the business.

How much higher are sales? Royal Caribbean says early bookings from its "wave" booking window show Royal Caribbean European sales are up more than 50% from the same time in 2010.

Royal Caribbean Vice President and Managing Director for UK and Ireland Dominic Paul said, "Our decision to continue to invest in the marketplace shows all signs of paying off. This summer we will have 11 ships based close to the UK around Europe, offering a huge variety of great value holidays, and this is driving a significant increase in sales. Our new “What you see is what you get” campaign is resonating well with both consumers and trade partners, and we are delighted with the support we’re receiving from the trade. We remain cautiously confident that the positive start to the year will set us in good stead for the remainder of 2011."

Royal Caribbean posted some new photos of Liberty of the Seas in dry dock in the Bahamas getting "Oasis-sized", meaning it's receiving upgrades to the ship from innovations that were originally from Oasis of the Seas.

Liberty of the Seas will receive...

• Broadway show (Saturday Night Fever)
• Royal Babies and Tots Nursery
• Large 18.5-foot video screen overlooking family pool area
• LCD wayfinder system
• Cupcake Cupboard restaurant
• Vintages lounge will be redone

In a conference call with investors, Royal Caribbean Chariman and CEO Richard Fain confirmed rumors that Royal Caribbean may be ready to look to building a new ship.

During the call, Fain thinks now may be the time to look at building a new ship, "We feel time may now be right for such a move."  In addition, a new ship would be a new class of ship, meaning it would not be another Oasis class ship or any other pre-existing Royal Caribbean ship class.

There's no timetable yet for placing an order, and Fain added in the short term, Royal Caribbean is focusing on current hardware revitalization, which means they will enhance current ships.  Fain called the program "Oasis-sizing", where they take features from Oasis and Allure of the Seas and roll them out to older ships.  This program was announced earlier this year and will add new features to older ships such as Radiance of the Seas, Splendour of the Seas, Liberty of the Seas and Freedom of the Seas.

UPDATE: (10:30am) Royal Caribbean Chariman and CEO Richard Fain added during a question and answer session that they will remain tight lipped about the new ship, but confirmed the ship will be a Royal Caribbean brand ship and based on the company's previous history of ordering ships for a new class, will likely start with one ship and then add more ships based on that class afterwards