S&P 500 cruise line stocks advanced Tuesday, led early by Norwegian Cruise Line, which on Monday announced plans to shift four vessels across its three brands into long-term charter agreements.
Norwegian Cruise Line reported late Monday deals for Cordelia Cruises, a cruise operator based in India, to charter two Norwegian Cruise Line vessels. The cruise-line giant said residential cruise line Crescent Seas will charter. The charters will begin in 2026 and 2027, according to the S&P 500 company.
"By strategically repurposing these vessels into markets and uses outside of our core business, we continue to generate value for our shareholders while focusing on a modernized fleet that enhances our guests' vacation experiences," Chief Executive Harry Sommer said in the press release.
Cruise Line Stocks
S&P 500 Norwegian Cruise Line stock soared early before ending Tuesday up 0.13% during stock market action. Fellow S&P 500 cruise line stocks Royal Caribbean edged up 0.3% and Carnival also advanced 1.6%.
The 55 stocks in the IBD-tracked Leisure-Services industry group have collectively declined 21% in 2025. The group ranks 116 out of 197 tracked sectors. All three S&P 500 cruise-line stocks sit in that industry group.
Meanwhile, Stifel on Tuesday lowered its price target on S&P 500 cruise line stock Royal Caribbean to 265 from 310. The research firm maintained a buy rating on the cruise line.
Stifel analysts wrote that with an uncertain consumer backdrop, the near-term upside of the stock could be "tricky." However, the analysts positioned Royal Caribbean as a "best in class" gaming and leisure stock, even if the current uncertain operating environment persists.
S&P 500: Cruise Lines And China
However, cruise lines could be hit by the ongoing trade war between President Donald Trump and China.
The U.S. Trade Representative has proposed a $1.5 million port fee on ships either operated by or built in China. The proposal includes a $1 million per U.S. port call fee on Chinese vessel operators and a $1.5 million fee per U.S. port call for Chinese-built vessels. The U.S. Trade Representative is also suggesting a vessel operator service fee, regardless of their nationality or vessel flag, with vessels on order from Chinese shipyards.
Currently, S&P 500 component Carnival appears to be the only cruise line that has China-made ships in its catalog. Carnival has part-ownership of the first cruise ship constructed in a China shipyard, via a joint venture. The ship, the Adora Magic City, first set sail on Jan. 1, 2024.
China is currently working on the construction of its second large cruise ship. The Adora Cruises, a Chinese company controlled with Carnival as a minority investor, is building the China-made ships.
This comes as Trump ramps up his trade war with China. The U.S. president has threatened China with an extra 50% tariff if Beijing does not withdraw its 34% retaliatory tariff on the U.S. Trump already slapped 20% tariffs on China earlier this year, and planned to add another 34% on April 9. So the combined total will be a 104% tariff on all Chinese goods, with many facing higher duties.
Trump's 10% baseline tariffs on all trading partners started Saturday, with the much-higher bilateral rates for most partners beginning April 9.
