Cruise Industry Covid-19 Response

Courtesy of CLIA (cruising.org)

Cruise Lines International Association (CLIA)  is the world's largest cruise industry trade association, providing a unified voice and leading authority of the global cruise community. On behalf of its members, affiliates, and partners, the organization supports policies and practices that foster a secure, healthy, and sustainable cruise ship environment, promoting positive travel experiences for the more than 30 million passengers who have cruised annually.

They have assembled the latest industry facts and resources and summarizes the current state as follows:   (click here for the latest news and resources)

 As the world continues to address challenges regarding COVID-19, the top priority for the entire cruise community—including cruise lines, travel agents, ports, destinations, suppliers and beyond—continues to be the health and safety of passengers, crew and the communities in the places we visit. 

CLIA and its member lines have invested in research, worked with global experts, and closely cooperated with national and regional health, transport and safety authorities in specific regions to develop world leading health and safety protocols. In fact, to date, we have put in place more than 75 science-led measures. 

The industry’s successful resumption in Europe, parts of Asia, the UK, and parts of North America demonstrate a promising example that a responsible return to cruising is possible with the right measures in place.   

Cruise Ships Singled Out

In all the hospitality and travel sectors, people gather in close contact to socialize and enjoy shared experiences.  Last year this time there was a perception that the incidents of  COVID-19 were higher on cruise ships than other sectors and industries.

Cruise Ships Differ From Other Sectors & Industries

CLIA member lines are required to have credentialed doctors and nurses onboard who are required to provide health declarations detailing illnesses of individuals onboard to port authorities around the globe prior to a ship’s entry. Neither airlines, hotels, nor any other travel and tourism sector is required to report the same information.

This lopsided reporting isn't new with COVID-19.  The media has always singed out incidents of Norovirus outbreaks on cruise ships, while similar events occurring elsewhere in the travel and hospitality sectors go unreported.  The following is not new:

How do CLIA member cruise lines promote public health? 

• CLIA ocean-going cruise ships are the only form of travel or passenger transportation that must be medically equipped to care for passengers or crew in the event of illness 
• medical facilities must meet the standards set forth by the American College of Emergency Physicians (ACEP) 
• cruise ships must have an examination room, an intensive care room and equipment for processing labs, monitoring vital signs and administering medications 
• doctors and medical personnel MUST be available onboard 24/7 

We will take a closer look at some of the new technology and protocols that are currently in place to provide a safe and healthy environment for your vacation.   You will learn that since the cruise line controls their environment, a cruise vacation is one of the safest things you can do today.

 

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Cruise Lines Respond to Dorian Devastation

We'd like to commend Carnival, Royal Caribbean and Disney for donating millions to the relief effort in the Bahamas.  We anticipate there will be other cruise lines following suite over the days ahead.  Their generosity will go a long way in helping the people suffering on the islands in their first steps on a long road to recovery.  

UPDATE: September 5th - Norwegian Cruise Line has also donated and it appears that ships can now begin to call with relief supplies.

After every one of these devastating storms, the cruise lines are always there providing support, which comes in many forms.   Some people may be asking why they aren't doing more - like sending ships to the Bahamas with supplies.  Others think cruise lines should have done things differently.  Here is some information to help you understand things a little better.

Like everyone else, we've been following Hurricane Dorian, and its impact first on the lives of many people in the Bahamas and the Southeast United States, and secondly on cruise itineraries.  There have been complaints posted on social networks, and in various media articles, about lack of communication on certain cruises, and the impact on their vacation plans.  

We are always amazed by the behind the scenes logistics that are necessary in situations like these, and how well cruise lines are able to react, in what are often very fluid arrangements. Communication may be secondary to getting things done.  Oh, and by the way, guess where HQ for cruise lines are for the most part - Florida.  They too were dealing with evacuations and other preparations of their own at the same time.

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Cruising during Hurricane Season isn't for everyone.  It requires tolerance and understanding.  We saw one couple interviewed on The Weather Channel after disembarking their ship.  Their itinerary was altered, and they never were able to disembark in a port.  They indicated that they always cruise during this time of year, and that they had a great time on board experiencing the ship.

First of all, the cruise lines aren't in control of the weather.  Even meteorologists were surprised by Hurricane Dorian parking over the Bahamas for as long as it did.  Secondly, the U.S. Coast Guard is in charge of the ports.  There are very clear policies, which are in place for safety of people, ports, and vessels.  In our article, Hurricane Dorian Florida Port Closures, we've listed those Port Closure Conditions.  Port Authorities, in conjunction with the USCG, work with the cruise line's administration to determine safe alternatives when original plans must be adjusted.  

Right now, it just isn't safe to go to the Bahamas with a large cruise ship for many reasons.  Some of the impacted areas aren't setup to receive a large vessel.  Those that are, still need to be inspected as damaging debris could be in the water.  Rest assured that the cruise lines are in communication with the necessary government officials to determine what actions to take. 
  

For those who had their vacations altered by Dorian, we empathize.  We are grateful that the cruise lines did their job and made the tough decisions to keep you safe during this tumultuous time.

Hurricane Preparedness - After the Storm

click images to enlarge

Carnival Cruise Line Statement

Carnival & the Arison Foundation have pledged $2M for Bahamas relief. Additionally, Carnival will help with the transportation of donated goods from South Florida to the islands. Please stay tuned for how you can help. We’re working with two aid organizations you can join us in supporting.

"To our friends in The Bahamas, please know you will not be alone in your effort." said Carnival Corporation CEO Arnold Donald. "All of us at Carnival Corporation pledge to work with you. We have been and remain in constant contact with government officials as they determine the highest priorities for both the short term and long term."

Royal Caribbean  Bahamas Relief Effort

Post on Instagram September 5th: "We’re with you Bahamas. In the wake of Dorian, we’re mobilizing our fleet to help those who need it. In partnership with the Bahamian government & The Bahamas Feeding Network, tomorrow we’ll deliver +43k water bottles, 10k meals, generators, supplies & we’re just getting started."
Royal Caribbean posted the following update on their page September 3, 2019

"The Bahamas has always been more than a destination for Royal Caribbean and our guests. For more than half a century, we’ve made many friends and many memories. The Bahamas is also home to more than 500 of our colleagues who work at Perfect Day at CocoCay and the Grand Bahama Shipyard. 

So in the aftermath of Hurricane Dorian, the Bahamian people are in our thoughts and prayers. And we’re rolling up our sleeves to help our friends, and inviting our guests to help.

Royal Caribbean is committing $1 million to Dorian disaster relief, and ITM—our partners in the Holistica joint venture that is developing the Grand Lucayan resort in Freeport—is also donating an additional $100,000.

To make sure our donations go where they can do the most good, we are collaborating with the Bahamian government and our non-profit partner, the Pan American Development Foundation (PADF), and a network of Bahamian charities and organizations, including the Bahamas Feeding Network. We are loading all kinds of goods onto our ships— generators, water, cleaning supplies, clean sheets, towels, and more—for direct delivery to the Bahamas. The trained employee volunteers we call the GO Team are on their way to assist with relief efforts. And we’re taking special care of coworkers and their families who were affected by the storm.

Our donation includes matching every dollar of guest and employee donations to PADF so they can help our friends as well.

We can’t make every bad memory of Dorian go away. But we can start making things better—today."

Norwegian Cruise Line Joins Relief Effots

Norwegian Breakaway was one of two ships that were diverted to New Orleans when they couldn't return to their home port in Miami (due to port closures by the USCG).

The Mouse Pledges Support

The Walt Disney Company announced Tuesday afternoon it has committed to donating more than $1 million in cash and in-kind support to help recovery efforts in the Bahamas. Disney will donate $1 million donation to nonprofit relief agencies leading recovery and rebuilding efforts and the provision of supplies to areas that need it. 

The company said in a news release that its employees in the Bahamas will have access to other resources. Disney Castaway Cay employs more than 60 Bahamians from Abaco and Grand Bahama, and some employees from other Bahamian islands. 

“The Walt Disney Company stands with the people of The Bahamas affected by Hurricane Dorian,” Robert Iger, Disney chairman and CEO, said in the release. 

We hope our $1 million donation will provide much-needed relief and help our neighbors, colleagues, and all those impacted by this devastating storm begin the long process of recovery as they work to put their lives and communities back together.”

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.