Costa Concordia: what comes next?
Slides from the Lloyd's List Costa Conccordia webinar held on 27th January.
Webinar contents -
•Casualty trends at Costa Concordia and the cruise sector
•Who lies behind the corporate veil
•The entities behind the Costa brand name
•What the vessel movements data tells us
•What lies ahead on the story
Improvement of the legal framework for maritime security in West Africa SWAIMSProject
By Ms Siji Song, Crime Prevention and Criminal Justice Officer at UNODC
SWAIMS webinar held on 9th February 2022, with private sector actors in West Africa
Gender in the maritme space: A maritime security perspectiveSWAIMSProject
Presentation on 10th November 2021 by SWAIMS Project Officer at the 1st Blue Career and Business Expo, Accra, Ghana, organised by the Gulf of Guinea Maritime Institute (GoGMI), 9th–10th November 2021.
Leveraging the role of non-state actors in maritime securitySWAIMSProject
Presentation on 9th November 2021 by SWAIMS Key Expert on Private Sector and Civil Society at the 3rd Technical Rotating Group Meeting on Enhancing Maritime Security In the Gulf Of Guinea (8th–9th November 2021).
Held in Lagos, Nigeria, the meeting was jointly convened by the Kofi Annan International Peacekeeping Training Centre (Ghana), the Interregional Coordination Centre (based in Yaoundé, Cameroon) and the Nigerian Maritime Administration and Safety Agency (NIMASA).
Daniele Archibugi, Research Director at the Italian National Research Council, delivered a lecture at the Panel presentation on the topic of “Open-Sea Piracy in the Modern World: Perils and Prospects.”
Addressing the theme, ‘Safe and smooth access to ports: A challenge’, the 9th IHMA Congress in Belgium will showcase technical and operational breakthroughs together with international case studies on the development and management of modern port and marine operations across the globe.
As critical logistic and economic gateways, access to ports is essential for successful maritime operations. Harbour Masters play a key role in the safe, efficient and environmentally sound conduct of marine operations in port waters. As ships get larger, crews get smaller and the landscape of waterways continues to change, how can Harbour Masters, in collaboration with maritime authorities, port users, shipping operators and business partners, offer the best access to ports?
Take a Stand and Deliver – Proactive Security Defeats Organized CriminalsSchneider National, Inc.
Even with the heightened awareness of security in the wake of 9/11, the risks to cargo in transit continue to mount as thieves become more sophisticated, aggressive and connected. By taking an equally aggressive, proactive approach to security before tender, during transit and at delivery, you can mitigate the risks to your cargo, your brand and your bottom line.
The maritime industry has been flirting with thirty-year low freight rates, which has pushed asset prices for vessels at historically low prices; if one were to believe 'buy low, sell high', this seems to be the perfect opportunity. However, as Basil Karatzas presents at the Mare Forum conference at the Cayman Islands in May 2015, 'going long shipping' may not be the ideal way to benefit from the present state of the market. Could providing loans and credit in the shipping be the best way to generate superior risk-adjusted returns?
Maritime piracy a sustainable global solutionSanuraDeAlwis
A proposal for a sustainable global solution for a pressing social issue common in the world. By Paul R. Williams and Lowry Pressly from the Case Western Reserve University, School of Law
Shipping is a volatile industry with risks known and unknown, some qualitative but most quantifiable. Basil Karatzas (+1 212 380 3700, info@bmkaratzas.com) at Karatzas Marine Advisors & Co provides a white paper that especially institutional investors in the shipping industry will find of interest.
Improvement of the legal framework for maritime security in West Africa SWAIMSProject
By Ms Siji Song, Crime Prevention and Criminal Justice Officer at UNODC
SWAIMS webinar held on 9th February 2022, with private sector actors in West Africa
Gender in the maritme space: A maritime security perspectiveSWAIMSProject
Presentation on 10th November 2021 by SWAIMS Project Officer at the 1st Blue Career and Business Expo, Accra, Ghana, organised by the Gulf of Guinea Maritime Institute (GoGMI), 9th–10th November 2021.
Leveraging the role of non-state actors in maritime securitySWAIMSProject
Presentation on 9th November 2021 by SWAIMS Key Expert on Private Sector and Civil Society at the 3rd Technical Rotating Group Meeting on Enhancing Maritime Security In the Gulf Of Guinea (8th–9th November 2021).
Held in Lagos, Nigeria, the meeting was jointly convened by the Kofi Annan International Peacekeeping Training Centre (Ghana), the Interregional Coordination Centre (based in Yaoundé, Cameroon) and the Nigerian Maritime Administration and Safety Agency (NIMASA).
Daniele Archibugi, Research Director at the Italian National Research Council, delivered a lecture at the Panel presentation on the topic of “Open-Sea Piracy in the Modern World: Perils and Prospects.”
Addressing the theme, ‘Safe and smooth access to ports: A challenge’, the 9th IHMA Congress in Belgium will showcase technical and operational breakthroughs together with international case studies on the development and management of modern port and marine operations across the globe.
As critical logistic and economic gateways, access to ports is essential for successful maritime operations. Harbour Masters play a key role in the safe, efficient and environmentally sound conduct of marine operations in port waters. As ships get larger, crews get smaller and the landscape of waterways continues to change, how can Harbour Masters, in collaboration with maritime authorities, port users, shipping operators and business partners, offer the best access to ports?
Take a Stand and Deliver – Proactive Security Defeats Organized CriminalsSchneider National, Inc.
Even with the heightened awareness of security in the wake of 9/11, the risks to cargo in transit continue to mount as thieves become more sophisticated, aggressive and connected. By taking an equally aggressive, proactive approach to security before tender, during transit and at delivery, you can mitigate the risks to your cargo, your brand and your bottom line.
The maritime industry has been flirting with thirty-year low freight rates, which has pushed asset prices for vessels at historically low prices; if one were to believe 'buy low, sell high', this seems to be the perfect opportunity. However, as Basil Karatzas presents at the Mare Forum conference at the Cayman Islands in May 2015, 'going long shipping' may not be the ideal way to benefit from the present state of the market. Could providing loans and credit in the shipping be the best way to generate superior risk-adjusted returns?
Maritime piracy a sustainable global solutionSanuraDeAlwis
A proposal for a sustainable global solution for a pressing social issue common in the world. By Paul R. Williams and Lowry Pressly from the Case Western Reserve University, School of Law
Shipping is a volatile industry with risks known and unknown, some qualitative but most quantifiable. Basil Karatzas (+1 212 380 3700, info@bmkaratzas.com) at Karatzas Marine Advisors & Co provides a white paper that especially institutional investors in the shipping industry will find of interest.
Drip Capital Webinar Presentation on - Shipping formalities, procedures & do...Rashmi Rajwani
The shipping industry’s ability to offer economical and efficient long-distance transport has placed the sector at the center of the world economy. Billion tons of goods and materials are ferried via ship each year from one destination to another for its consumption.
Although shipping is regarded as a convenient mode of transportation, exporters must grasp the numerous procedures and formalities associated with it for smooth day-to-day operations. To understand it all and simplify the hurdles in the shipping process, Drip Capital, in association with Mr. Hemant Kulkarni, organized this webinar
You can watch the webinar here - https://youtu.be/rdn4dWnBK4Q
CRUISE INTERNATIONAL, INC. A VIRTUAL SERVICE CASE .docxannettsparrow
CRUISE INTERNATIONAL, INC.
A VIRTUAL SERVICE CASE
Operations Management, 4e
Reid, Sanders
Mission Statement
We are committed to serving our customers, both the guests
and travel agents who book and support our cruises. Every
service we provide must be of the highest quality whether it be
shipboard or shore side.
We constantly seek improvement and innovation as we strive to
reduce costs in order to maintain reasonable fares, further
enhancing the value of our service. All bookings are serviced
promptly and accurately with the highest respect and courtesy.
We recognize that our suppliers and distributors must have an
opportunity to make a fair profit.
Cruise International, Inc. is concerned about our staff, the men
and women who work with us, whether shipboard or shore side.
All employees are provided with clean, orderly, and safe
working conditions. Each employee is treated with respect and
recognized for his/her effort. Cruise International is committed to
providing competent management.
Our ultimate responsibility is to our parent company and its
stockholders. Our business must make a reasonable profit.
Data and Charts
Cruise Data
• North American Passenger Capacity
• Cruise Destination Data
• Cruise Destination Data (Seasonalized)
• Average Length of Cruise Data
• Length of Cruise Demand Data
• Average Capacity Utilization
Quality Survey Data
• Billing Errors Data
• Guest Survey Data
• Housekeeping Stateroom Cleaning
Data
Work Sampling Data Hours Required to
Accomplish
Routine Maintenance Tasks
Cost Reports Processing Time Chart
Activities for Telemedicine System
Implementation
CRUISE DATA
North American Passenger Capacity
Individual Cruise Line Detail at Year-End 2009
Cruise Line
No. of Lower Berths No. of Ships
Carnival Cruise Lines 47,908 21
Celebrity Cruises 14,762 9
Costa Cruise Lines 17,265 10
Cruise International, Inc. 13,120 12
Crystal Cruises 2,014 2
Cunard Line, Ltd. 4.411 2
Disney Cruise Line 3,508 2
Holland America Line 16,929 12
MSC Cruises USA 9,073 7
Norwegian Coastal Voyages 5,923 13
Norwegian Cruise Line 20,950 11
Oceania Cruises, Inc. 2,052 3
Orient Lines, Inc. 845 1
Princess Cruises 28,800 14
Regent Seven Seas Cruises 2,410 5
Royal Caribbean International 45,570 20
Seabourn Cruise Lines 624 3
Silversea Cruises 1,356 4
Swan Hellenic 360 1
Windstar Cruises 604 3
Total 234,077 155
Cruise Destination Data
Cruise Destination Data (Seasonalized)
Average Length of Cruise
Length of Cruise Demand Data
Average Capacity Utilization
QUALITY SURVEY DATA
Billing Errors Data
Cruise Number
Number of
Defective Bills
1 47
2 45
3 59
4 50
5 74
6 71
7 65
8 49
9 26
10 29
11 32
12 35
13 48
14 46
15 51
16 64
17 52
18 44
19 46
20 51
21 45
Total 1029
Guest Survey Data
Cruise
Number
Number of
Outstanding
Respons.
In 2006, following the Ethan Allen accident, NTSB held a training seminar on NTSB marine accident investigations of sole-state passenger vessel accidents which provided the initiative to revise the Model Act for charter Vessel Safety. Recreational boating accident investigations jointly worked between a state and NTSB are a much different process and sharing the lessons learned from the April 12, 2009 Jacksonville boating accident jointly investigated by Florida FWC and NTSB will benefit both the NTSB and NASBLA membership in future cooperative investigations and recognition of each others roles and responsibilities in boating safety.
CRUISE INTERNATIONAL, INC.A VIRTUAL SERVICE CASEOper.docxannettsparrow
CRUISE INTERNATIONAL, INC.
A VIRTUAL SERVICE CASE
Operations Management, 4e
Reid, Sanders
An Overview of Cruise International, Inc.
Cruise International has been in business for more than two decades. The organization competes in all aspects of the cruise industry. They provide cruises with small ships (fewer than 500 passengers), medium ships (between 500 and 1,500 passengers), and large ships (over 1,500 passengers), as well as several different luxury levels.
Cruise International, Inc. currently uses the following port cities for embarkation and disembarkation.
Amsterdam, Holland
Rome, Italy
Auckland, New Zealand
San Diego, California
Barcelona, Spain
San Francisco, California
Beijing, China
San Juan, Puerto Rico
Buenos Aires, Argentina
Seattle, Washington
Cape Liberty, Bayonne, New Jersey
Seward, Alaska
Ensenada, Mexico
Singapore
Ft. Lauderdale, Florida
Southampton, England
Harwich, England
Stockholm, Sweden
Hong Kong, China
Sydney, Australia
Honolulu, Oahu, Hawaii
Valparaiso, Chile
Los Angeles, California
Vancouver, British Columbia
Miami, Florida
Venice, Italy
Corporate headquarters for Cruise International, Inc. are located in Miami, Florida.
The cruise ships used by CII have a number of departments and services. The Administration basically handles the paper work during the cruise. The Deck and Engine members are responsible for the operation and maintenance of the ship. Entertainment Services provide the onboard entertainment. Food and Beverage Services are responsible for dining and drinking aboard the ship. The Hotel function is responsible for the staterooms for guests and crew.
Housekeeping cleans the public areas of the ship as well as the staterooms. Information Technology is responsible for the operation and maintenance of all areas of the cruise ship's onboard computer system. The Cruise Staff is responsible for maintaining guest relations.
Clicking on the underlined department allows you to find out more about the department or simply go to the Cruise International, Inc. Departments and Services Page.
The descriptions of job positions were taken from http://www.cruiseservices.co.uk and http://www.cruiseshipjobs.biz.
CRUISE INTERNATIONAL, INC. A VIRTUAL SERVICE CASE
Operations Management, 4e
Reid, Sanders
Mission Statement
We are committed to serving our customers, both the guests and travel agents who book and support our cruises. Every service we provide must be of the highest quality whether it be shipboard or shore side.
We constantly seek improvement and innovation as we strive to reduce costs in order to maintain reasonable fares, further enhancing the value of our service. All bookings are serviced promptly and accurately with the highest respect and courtesy. We recognize that our suppliers and distributors must have an opportunity to make a fair profit.
Cruise International, Inc. is concerned about our staff, the men and women who work with us, whether shipboard or shore side. All employees.
Flag State's, Port State's and Labour Supplying State's Responsibilities unde...Amarinder Singh Brar
Day-4 session of Certificate Course on Maritime Labour Law conducted by Gujurat Maritime University.
My talk and presentation focussed on the responsibilities of the Flag State, Port State and Labour Supplying State under MLC2006 with examples of implementation followed by a discussion of case law and COVID-19 related matters affecting seafarers.
2. On the call today
Adam Smallman, Head of Content
Wally Mandryk, Market Intelligence Manager
David Osler, Industrial Editor
3. In the next 40 minutes we’ll…
• Probe vessel’s movements
• Compare the movements with others
• Understand casualties patterns
• See complex ownership
• Gauge salvage, legislation implications
• Hear how Lloyd’s List will cover it next
• Take questions
4. Our information
• Lloyd’s List editorial team
• Lloyd’s List Intelligence data, analysis
• Unique use of AIS stations+Lloyd’s
agents+satellite
• Land-based stations used in Concordia case
• Casualties data from our 24/7 alerting service
• Analysis done by Wally, colleagues, journalists
5. Concordia’s movements
• The fateful voyage
• Comparison to similar visit in August last year
• Other Costa Crociere vessels movements near
Giglio
• Previous Concordia voyages in the region
• Other cruise ship movements in the region
12. Movements Summary
• Costa unusual in its vessels’ proximity to the island
versus other operators
• But Concordia more frequent than other Costa
vessels
• Summer voyage last year looks pre-determined
toward Giglio
• Jan 13 voyage shows far later turn-in toward Giglio
13. Casualties Backgrounder
• Annually, some 60 cruise vessels out of 500-strong
fleet involved in casualties
• Navigation incidents remain relatively high last year,
though equipment failures fell sharply
• Around 40% of cruise sector casualties feature
vessels less than 10 years old – a surprise
• Almost two-thirds involved in casualty were flagged
with open registries (so-called ‘flags of convenience’)
14. Casualties Backgrounder
• Navigation issues largest contributor to lives lost
• External events (weather, piracy) a minority of incidents
• Majority, including fatalities, occur on largest vessels
(+40,000GT)
Wally Mandryk, Market Intelligence Manager
17. Casualties by company
• Carnival, Royal Caribbean account for half of casualties but have
fleet share sub-30%
• Pre-Concordia, 11 cruise ship fatalities since ’06 on seven vessels
• But only two due to grounding
• Including Concordia, half the eight vessels beneficially owned by
Carnival
• All were classed by respected International Association of
Classification Societies
Wally Mandryk, Market Intelligence Manager
18. Ownership backgrounder
• Complex vessel/company linkages exist within
maritime
• If analysing casualty and trend information it
is important to view incidents within the
relevant ownership structures
• Ownership structures in the Concordia case
are best understood by visual representation
20. Insurance exposures
• RSA surveyors not yet on board
• Total loss or recovery decision on $550M vessel some
way off
• Carpet alone valued at $4M
• P&I exposure may be as high as $1B, with ~$100M for
wreck recovery
• U.S. class action may drive up costs
• Regional impact (Tunisia proximity, others) may lift
exposure
• Will hull/machinery market harden?
21. Insurance exposures
• Carnival P&I coverage somewhat unusual
• Has ‘excess’ of $10M before P&I involvement
• Then it’s split between Standard Club and Steamship
Mutual (liable for $4M-a-piece before International Club)
• International Club has $3.06B of coverage
• If liability claims pass through $60M – likely? -
International’s excess of loss reinsurance triggered
• Total loss will hit P&I with wreck removal. Scrapped?
• Carnival, other cruise firms costs to rise
22. Legislation Backgrounder
• 1912: Titanic spelt Safety of Life at Sea convention
• 1987: Herald of Free Enterprise saw adoption of Safety of
Life at Sea amendments and new rules on ferry stability
• 1989: Exxon Valdez oil spill resulted in Oil Pollution Act
1990
• 1999: Erika sinking propelled EU-wide ban on single-hull
tankers
David Osler, Industrial Editor
23. Legislation Outlook
• US House Transportation and Infrastructure
Committee hearing launches next month
• Italian government
• E.U.
• International Maritime Organization confirms Costa
Concordia investigation findings to be eventually
considered
David Osler, Industrial Editor
24. Legislation Focus?
• Stability standards
• Technical specifications
• Management procedures
• Lifeboat provision and release times
• Safety training of hotel staff
• Timing of safety briefings
• Proscription on sailing close to shore
David Osler, Industrial Editor
25. What Lloyd’s List will cover next
• Carnival strategy: damage limitation, payout implications, the
Costa brand
• Passenger ship safety standards, regulatory backlash, cost to
industry
• Insurers to reconsider their attitude to cruise ship risk?
• Legal: flag state developments, criminal investigations, class
actions, legal precedents
• Size rethink: changes to salvage, safety procedures and even
willingness to opt for giant vessels
•
26. Need to know more?
In the U.S? Speak with David Pender to get Lloyd’s List on your iPhone, iPad,
desktop and e-mail
davidpender@informausa.com +1 (212) 652 5332
In Europe, Chris Rowe will help
chris.rowe@informa.com +44 (20) 701 74187
In the U.S.? For movements data, analysis & insight from Lloyd’s List
Intelligence, speak with Brad Browne
brad.browne@informa.com +1 (646) 957 8968
In Europe, Jonathan Fletcher will help:
jonathan.fletcher@informa.com +44 (20) 337 73302