Carnival in Costa Concordia cost assessment

Carnival Corp & plc, parent company of Costa Crociere whose 114,500 gross ton Costa Concordia ran aground on the coast of Italy on 13 January, has calculated costs of the accident.

The company said in a filing with the New York Stock Exchange that the 2006 built ship had a book value of $490 million at the end of last year. It is insured for $510M, but deductibles should amount to about $30M. In addition, Carenival expects other costs related to the incident amount to $30-$40 million.

Carnival also reiterated an earlier assessment that the 2,978 passenger capacity ship’s absence from service would reduce its net earnings by $85-$95 million this financial year that ends 30 November.

CLIA launches safety review

Cruise Lines International Association (CLIA ) says it will launch an operational safety review in the wake of Costa Concordia's grounding on 13 January on the west coast of Italy.

"In response to the Concordia incident and as part of the industry’s continuous efforts to review and improve safety measures, the Cruise Lines International Association, Inc. (CLIA), speaking on behalf of the global cruise lines industry, today announced the launch of a Cruise Industry Operational Safety Review.  The Review will include a comprehensive assessment of the critical human factors and operational aspects of maritime safety.   As best practices are identified, they will be shared among CLIA members and any appropriate recommendations will be shared with the IMO.  Recommendations will be made on an ongoing basis," the organisation said in a statement.

Key components of the Review include:

An internal review by CLIA members of their own operational safety practices and procedures concerning issues of navigation, evacuation, emergency training, and related practices and procedures. 

Consultation with independent external experts.

Identification and sharing of industry best practices and policies, as well as possible recommendations to the IMO for substantive regulatory changes to further improve the industry’s operational safety.

Collaboration with the IMO, governments and regulatory bodies to implement any necessary regulatory changes. 

"While the cruise industry has an outstanding safety record, CLIA is fully committed to understanding the factors that contributed to the Concordia incident and is proactively responding to all maritime safety issues.  The Cruise Industry Operational Safety Review will enable the industry to do so in a meaningful and expedited manner," CLIA said.

 

Labor strikes delay Oceania Cruises' new Riviera

Oceania Cruises was notified by Fincantieri late last week of construction delays and as a result, will reschedule the maiden voyage of its m/s Riviera. Construction on the 1,250-guest ship fell behind schedule when strikes at Fincantieri's shipyard near Genoa, Italy, lasted longer than expected. The maiden voyage of Riviera has moved from April 24 to May 16, and all guests affected by the delay will be contacted by their travel agents or by Oceania Cruises directly to discuss alternative cruise dates.

"We sincerely regret any inconvenience that this may cause our guests," stated Kunal S. Kamlani, the cruise line's president. "We are working very closely with the shipyard to ensure Riviera is completed to meet Oceania's high standards of quality and service."

"We know that sophisticated international travelers are anxious to welcome Riviera and we regret that labor strikes have caused this delay," said Giuseppe Bono, Fincantieri's chief executive officer. "All of us at Fincantieri are committed to producing a superior quality ship and we will deliver a truly magnificent vessel to Oceania Cruises without further delays."

The new maiden voyage is a 10-day Pearls of the Aegean cruise that includes an overnight aboard ship in Venice before visiting Dubrovnik, Kotor, Corfu, Monemvasia, Crete, Santorini, Kusadasi (gateway to Ephesus), Delos, Mykonos and Athens.

Guests booked on affected sailings will have the option of rebooking another cruise and receive a future cruise credit, which ranges from $250 to $1,000 per guest, depending on category of accommodation. In the event guests do not wish to rebook, they will receive a full refund. Travel agent commissions will be protected.