Oasis Cruises Cancelled Following Shipyard Accident

Crane Topples onto Royal Caribbean Oasis of the Seas in Bahamas Shipyard - 8 Injured - Cruises Cancelled

Bahamas Press posted this video on YouTube on April 1st.  It was not an April Fool's joke.  Royal Caribbean Oasis of the Seas was undergoing planned repairs in Freeport, Bahamas shipyard when a crane toppled onto the ship damaging it and the facility.  Fortunately, there were no fatalities or life-threatening injuries.  Royal Caribbean has since inspected the ship and cancelled the next 3 sailings.

Oasis will head from Grand Bahama shipyard to be serviced at facilities in Cadiz, Spain. Oasis will resume her scheduled itineraries, beginning with the May 5 sailing from Barcelona.

"We are very grateful that there were no life-threatening injuries and everyone is recovering, as the safety of our crew and guests is always our number one priority."  ~Royal Caribbean statement



What the News Media Isn't Telling You

The news media tends to focus on the negative aspects of cruise industry incidents.  In fact, some outlets even tied this event to norovirus outbreaks that had occurred earlier.  Shame on them for bringing that up at a time when they should have been reporting on the injured parties and impact on the shipyard, the Bahamas economy, impacted families, and the cruise line.   For the record, norovirus isn't unique to cruise ships, but those are usually the stories that get told. Here is one of our old blog posts on the topic. 

This shipyard accident couldn't have come at a worse time.  This is Spring break time with families longing to get away, especially those who have had it with winter weather.   The Oasis is one of the largest ships afloat (along with her sister ships), so that means the most passengers possible were impacted by the cancellations.

Responding to the incident as quickly as they did was no small feat. If you've ever had a car accident, you can put yourself in Royal Caribbean's shoes at a much smaller scale.   Your family members were probably relying on the vehicle to get to appointments; perhaps a vacation.  You need to find other means of transportation and perhaps cancel some planned activities.    Now consider that involving more than 5,000 people on just this one cruise alone.

When you have the largest ship afloat, you can't just pull into a shipyard down the way.   So they had to find a shipyard that had availability to handle a ship that size.   Passengers need to be re-accommodated (recall this is Spring break and ships are already at full capacity).   You can't just get a ship out of the garage and put it into service (like you would with your car).

Royal Caribbean put together a compensation package for impacted cruise passengers and travel professionals, and communicated that shortly after examining the ship to determine the extent of damage.   We won't reveal the complete details, but it included refunds for the existing cruise and future cruise credits as well as assistance for flight change fees.   It was a most generous package.

We'd like to commend Royal Caribbean for the way they've responded to this incident and cared for their impacted passengers and travel professionals.   We are proud to call them a partner.

Connect With Us On

        

Sign-up for Exclusive Email Offers


Where have you explored? 

Gather your travel and food pics and join us every Wednesday night for the latest installment of #FoodTravelChat

Costs Mounting for Carnival Triumph

A Wave of Expenses

Hitting Carnival

In the middle of Wave Season, typically the heaviest booking quarter of the year, Carnival Corporation is being hit by what must seem like a tidal wave as costs continue to mount in the wake of the latest disaster for the line, the fire February 10th on Carnival Triumph.

The cause of the fire is still under investigation and the cost to repair the ship have not been disclosed, but there have been several other financial impacts that have been identified.

Incident Response

As soon as Carnival Corporation learned of the fire, they mobilized a team of more than 3000 people at their headquarters in Miami, Florida and elsewhere to respond to the situation, coordinating efforts and seeing to the safe return of the ship, passengers, and crew. There were more than 200 staff on hand in Mobile, Alabama to assist in getting the passengers home.

We have just learned that a team of technical personnel and guest services staff that Carnival dispatched to the stricken Carnival Triumph on Monday, February 11 never made it to the ship. Recall that the ship drifted about 90 miles north of Progresso, Mexico. The small chartered boat that was taking the personnel to the ship had to turn back for fear of running out of fuel.

Ships & Boats Responding

The U.S. Coast Guard had Coast Guard Cutter Vigorous on scene from February 11th until the ship arrived in Mobile, AL. Three of the lines ships, Carnival Ecstasy, Carnival Legend, and Carnival Elation made stops bringing food and other supplies. The Coast Guard also air-lifted supplies, including generators to supplement the limited power onboard.

Carnival contracted with two tugs initially and added three more to tow the ship back to a port. Initially it was going to be Progresso, Mexico, but as the ship drifted 90 miles without power the destination was changed to Mobile, AL.

Mobile, Alabama Costs

As mentioned there were more than 200 staff on hand in Mobile, Alabama, including CEO Gerry Cahill, when the ship finally arrived in port.  Carnival arranged for buses, hotels, and chartered planes to accommodate the passengers as they disembarked.  The line indicated that more than 1,500 hotels rooms in Mobile and New Orleans had been booked and 10 charter flights had been secured to fly passengers to Houston on Friday.

The City of Mobile and the Port Authority also have their hands out for expense recovery:

The city will charge Carnival for the overtime costs of police, fire and public works employees who put in long hours the Thursday the ship arrived at the Mobile cruise terminal. The city also plans to charge the cruise line a wharfing fee as well as a charge for each passenger who used the gangway that led off the ship and into the terminal. The total cost has not been disclosed at this time.

Passenger Compensation & Lost Revenue

Passengers got a free cruise, most expenses credited, $500 additional reimbursement, and a 25% future cruise credit.  Complete details can be found in Carnival Triumph Additional Cancellations & Compensation

The Carnival Triumph will be out of service for an unknown period of time.  Cancellations have been announced through mid-April, but the down time could be increased depending on the results of the fire investigation and the necessary repairs.

Bottom Line Impact

Financial analysts estimate that the Carnival Triumph’s woes will have a 5-to-10 cents a share impact on CCL stock for this quarter, a sum that includes repairs, reimbursements and lost revenue.

As expected, there already are two suits filed as a result of the Carnival Triumph fire and the events following.  Some experts say that the Carnival (and other cruise line) contract protects the company from being sued, while others indicate it could be possible to make a case against the line.   We suspect that there could be some sort of settlement out of court. 

Reputation & Industry Impact

Despite the media hype surrounding this entire story, it doesn't appear to be having a major impact on the cruise industry.   The cruise industry is well regulated and self-correcting.  Yes, there may be lessons learned from this incident, but safegurds that were put in place, as recently as 2010, contributed to the outcome here, where there was no loss of life or serious injury.  The fire was contained by automatic fire fighting mechanisms which further protected the crew and passengers.

These incidents are rare and the cruise industry enjoys one of the highest safety and approval ratings of any other travel offering. We'll take a closer look at this in another article.

Cruise Lines International Association (CLIA) Vice President of Technical and Regulatory Affairs Bud Darr responded to media statements defending the safety of the cruise industry ships in the wake of the Carnival Triumph fire.

“There's no doubt that cruising is one of the safest, affordable and enjoyable vacation experiences available today, which explains why a record 20.6 million passengers worldwide enjoyed a cruise vacation in 2011,” he said.

There's still a little more than a month left on most of the Wave Season offers, so we recommend taking advantage of them before prices go up. Yes, prices will go up, not just on other lines, but Carnival as well. Carnival Triumph will be out of service, most likely for several months, which will put high demand on the remaining ships for all lines. The rule of supply and demand always impacts the cruise fares and this will be no different.

Note that Carnival Destiny is about to go into a 49 day dry dock for the most complex cruise ship refit ever undertaken by Carnival.

Carnival Triumph Additional Cancellations & Compensation

Carnival Triumph Under Tow Courtesy USCG

Looks Like Pleasant Sunrise

Carnival Triumph is seen in the distance in this early morning photo.   At first it looks like a pleasant sunrise, but there is more behind this image captured by U.S. Coast Guard  Ensign Chris Shivock in the Gulf of Mexico.

The tugs Resolve Pioneer and Dabhol tow and steer the 893-foot Carnival Triumph cruise ship Tuesday morning, Feb. 12, 2013, enroute to Mobile, Alabama after being disabled by an engine fire early Sunday morning.

For fire details & continuing coverage, see our anchor article:
Carnival Triumph Engine Fire 
 
Upcoming Voyages

Carnival Cruise Lines has also announced the cancellations of 12 additional voyages of the Carnival Triumph. The 12 cancelled cruises, which encompass sailings from Feb. 21 through April 13, 2013, are in addition to two previously cancelled voyages scheduled to depart Feb. 11 and Feb. 16.
 
UPDATE: 10 Additional Cruises Cancelled
Return to Service now June 3rd  

Carnival Triumph & Sunshine Returns Delayed

Additional Compensation  

Latest Update on Carnival Triumph February 13, 2013 – 5:45pm EST

Carnival Cruise Lines has announced further compensation for the passengers aboard the Carnival Triumph, currently being towed via tug boats to Mobile, Alabama after an engine room fire early Sunday caused a loss of propulsion.


As previously announced, all 3,143 guests  on the affected sailings will receive a full refund of their cruise fare, as well as non-refundable transportation costs, pre-paid shore excursions, gratuities, and government fees and taxes. Guests will also receive a 25 percent discount on a future three- to five-day Carnival cruise or a 15 percent discount on a six- to seven-day cruise. Travel agent commissions will be protected.
 
All guests on the current voyage will receive further compensation of $500.00 per person.

Gerry Cahill, President & CEO of Carnival Cruise Lines said: “We know it has been a longer journey back than we anticipated at the beginning of the week under very challenging circumstances. We are very sorry for what our guests have had to endure. Therefore, in addition to the full refund and future cruise credit already offered, we have decided to provide this additional compensation. I look forward to welcoming everyone to Mobile tomorrow and have mobilized our full resources to assist and support them as they travel home.”

Carnival sincerely apologizes for this disruption in our guests’ vacation plans.

Costa Allegra Arrives in Seychelles

(AP Photo/Gregorio Borgia)

Crippled Ship Arrives in
Port Victoria, Mahé

Images are emerging from Seychelles where the disabled Costa Allegra safely reached port under tow early Thursday morning local time.  By midday, passengers were disembarked and on their way to continue an alternate vacation or back home.

More Photos of Costa Allegra Arrival

Since 10:30 CET Monday, February 27th, the passengers and crew of Costa Allegra were without electricity and the comforts of a usual cruise ship in the wake of a fire that broke out in the generator room.

A French fishing vessel,Trevignon, was the first ship to arrive on the scene and provide assistance to the Costa Allegra. Two other tug boats arrived later to provide assistance, but the captain of the fishing vessel refused to accept the assistance, perhaps delaying the arrival into port. We suspect they were looking for compensation for their assistance and didn't want to split that with anyone else.

Costa Announces Compensation Plan

The number of Guests who have decided to accept Costa Crociere’s offer to continue their holidays in the Seychelles has risen to about 70%, out of a total of 627. These Guests have already been taken to the hotels where there will spend 1 or 2 weeks holiday at the company’s expense on the islands of Praslin, La Digue, Silhouette and Cerfs. Costa Crociere will also organize their return flights home after the holiday.

The remaining 30% of Guests who have decided to return home have been accommodated in hotels on the island. They will leave in the evening on flights organized by Costa Crociere from Seychelles International airport to Paris, to Milan via Rome, and to Zurich via Vienna. The flights are scheduled to arrive on the morning of March 2nd.


The Company, sincerely sorry for the discomfort caused to Guests but happy to have found them in good health, has offered them a compensation package including:

● a full refund of the fare paid for the cruise and associated travel expenses;
● a full refund of on board expenses incurred during the cruise;
● indemnity equivalent to the amount of the fare paid for the cruise and associated travel costs;
● for Guests who have decided not to continue their holday in the Seychelles at the Company’s expense, a voucher for the same value as the unfinished Costa Allegra cruise, for travel free of charge on any Costa ship departing in the coming 24 months.

	Guests aboard Costa Allegra arrived to Seychelles Islands	627
	Guests returned Home (3 flights)	147
	Guests hosted in Seychelles Islands Hotel	480

Costa Thanks Those Involved

Costa Crociere would like to express its gratitude to the master of Costa Allegra Nicolò Alba and all members of the crew, to the Guests of Costa Allegra, to the master and crew of the French deep sea fishing boat Trevignon, to the other naval and air units involved in the rescue operations of the Costa Allegra, to the Italian Harbour Office General Command, to the local authorities of the Seychelles and Reunion, to the Italian Consulate and Embassy, and to international diplomatic representatives.

Happy Ending?

Clearly this story has a much happier ending than that of her sister ship, Costa Concordia, that ran aground off the Italian cost of Giglio.   That accident had 25 confirmed deaths with several people still unaccounted for.  Both situations could have been much worse.

Passengers and crew of both ships found themselves unexpectedly in the midst of a crisis.  There will be much press around the performance of the crew in both situations.  On the surface, it appears that this second incident was closer to textbook preparation for something like this.  I think it's human nature to feel confident and prepared for the unexpected, but until you are in the midst of an emergency, you really don't know how you or anyone around you will respond to the crisis at hand.

We are happy that there was no serious injury or loss of life connected with this fire and have to commend the passengers and crew for their response to this crisis.

Costa Cruises will now begin the process of investigating the fire and determining the extent of the damages to the ship.   They have made no formal statements about future cruises on Costa Allegra at this time.  We will provide updates on this story as information is released.

Compensation Guidelines Costa Concordia

For Latest Updates please see the following blog post:

Costa Concordia Listing after Deadly Accident

UPDATE: 15 Feb. 2012

Deadline extended to March 31st

Costa Concordia Legal Update (this will contain updates on legal proceedings)

Passengers that were booked on Costa Concordia had until February 7th to determine what alternative arrangement they wished.   Costa neoRomantica and Costa Magica will offer Western Mediterranean itineraries, so travelers can sail as planned, but on a different ship.


UPDATE:  27 Jan. 2012

In addition to the compensation for cancelling cruises, Costa Cruises has also now released details about Compensation for Survivors of Costa Concordia's Accident (Uninjured Passengers)

The Associated Press today is reporting that Costa Cruises is offering survivors of the Costa Concordia accident 11,000 Euro (about $14,500) per person as compensation for their lost baggage as well as the psychological trauma they suffered during the event. This amount is in addition to reimbursing passengers for the full amount they paid for the cruise, their travel expenses and any medical expenses sustained after the accident.

Costa made this announcement after negotiations between Costa representatives and Italian Consumer groups.  It does not apply to passengers that were injured or killed, who presumably will be offered more.

Roberto Corbella, who represented Costa in the negotiations, told The Associated Press the deal offered Friday provides passengers with quick, "generous," and certain restitution.

"The big advantage that they have is an immediate response, no legal expenses, and they can put this whole thing behind them."

 

AP also reports that Codacons, one of Italy's best known consumer groups, has engaged two U.S. law firms to launch a class-action lawsuit against Costa and its parent company, Carnival Corporation & PLC, on behalf of passengers, claiming that it expects to get anywhere from $164,000 to $1.3 million per person, the Associated Press says.

FUTURE CRUISES CANCELLED

As recovery efforts are ongoing for Costa Concordia following the tragic accident Friday 13 January, future sailings on that vessel are cancelled for the near-term.    It is unknown whether the ship will ever return to service.  At present, the hope is that the fuel can be removed and prevent any environmental impact before bad weather approaches later this week. 

Costa has released compensation guidelines for passengers scheduled to sail on Concordia this week through February 25th.

For passengers scheduled on the January 14 departure from Savona, Italy, Costa worked with guests and their airlines to return home. Airline changes will be paid by Costa. A full refund of the cruise amount plus a 30 percent future cruise credit on the amount paid will be provided.

If guests choose to rebook on available sailings in January through March on Luminosa, Mediterranea, Favolosa, Serena or Voyager, Costa will pay for their air fare if booked through Costa’s air/sea department. Rebookings must be made by January 18.

Guests who choose to cancel their cruise on departures from January 15 through January 20 will get a full refund of cruise fare plus a 30 percent future cruise credit on the amount paid. No compensation for air will be provided if they are cruise-only passengers. For passengers who choose to rebook in January, February or March according to availability on Luminosa, Mediterranea, Favolosa, Serena or Voyager, Costa will assist the guest and airline on change fees.

Guests who choose to cancel sailings departing from January 21 through February 25 will get a full refund plus a 30 percent future cruise credit on the amount paid. No compensation for air will be provided for cruise-only guests. Those who rebook can choose any seven-day cruise between now and June at the same price. Costa will assist the guest and work with the airline on change fees for their new cruise on Costa. For assistance or more information, call 800-462-6782.