Recent Accidents Spur Industry Fear Of Legislation

The spate of recent accidents at sea involving high profile cruise ships has spurred fears among owners and operators that once again the long arm of the law will be reaching out to demand new levels of safety products, systems and procedures onboard luxury cruise liners. The cruise shipping industry, which has enjoyed unprecedented growth for much of the decade, has been beset by some unsightly accidents and mishaps that have raised the watchful eyes of legislators around the globe. At a recent hearing on S. 1510, The United States Cruise Ship Tourism Development Act, Senator John McCain, Chairman of the Senate Committee on Commerce, Science and Transportation, said in his opening statement: "I believe that continued failure by the international cruise industry to abide by all U.S. and international laws and regulations for operation in and out of our ports and to meet high standards with regard to passenger safety and well-being will result in action to restrict access, not expand it. I challenge them to improve their operations and warn them that if they don't, the Congress will act." The statement is made more significant by the fact that S. 1510 is not about improving cruise ship safety, per se, rather a measure to allow more U.S. companies to reap the benefits of the cruise popularity windfall.Weathering the Storm Senator McCain's statement in his testimony clearly indicate that, warranted or not, safety issues aboard modern cruise ships is clawing its way toward the top of legislative agendas. Maritime safety, in general, is a very emotional topic that usually peaks immediately following accidents, i.e. Exxon Valdez. The cruise industry has unintentionally placed a full plate of fodder for legislators to chew on. A series of accidents at sea, combined with recent criminal activity surrounding sex crimes and pollution, have generated more bad publicity for the cruise market in the past few months than the past few years combined. The latest incident involved a fire in the engine room aboard Carnival's Tropicale, an accident, which left the vessel without power and on the fringe of a tropical storm. Compounding the matter, the consumer press in the U.S. has sensationalized the matter, giving extensive, disparaging coverage regarding conditions aboard the disabled vessel, which was carrying approximately 1,700 passengers and crew. Carnival was recently involved in another scandal regarding sexual assault. Carnival Cruise Lines, which carry about two million vacationers a year, was accused of sexual assault 62 times in the five years up to last August. Carnival Cruise Lines gave few details of the 62 allegations investigated by company security staff other than to say each matter was referred to police if the accuser wished. At the time, Senator McCain said "I am extremely concerned about recent reports of cruise ship crew members sexually assaulting passengers and co-workers. Cruise ship companies should do everything in their power to ensure that this criminal activity does not occur, regardless of where the ship is flagged." Carnival - and for that matter, the U.S. cruise market - has not been alone in it troubles, as two other prominent carriers - Norwegian Cruise Lines and Royal Caribbean - have had recent troubles as well. Norwegian Cruise Line's 50,764 gt Norwegian Dream - carrying 2,400 passengers - was involved in a collision with the 52,090 gt, 1997-built containership Ever Decent, in the English Channel. While only three passengers on the Bahamas-registered liner were injured, the incident has raised many concerns, as, although it occurred in the middle of the night, winds were light and visibility was good, and each vessel was reportedly outfitted with working versions of the latest electronics and collision avoidance systems. Both ships were badly damaged, and several large containers with a newfound home on the deck of Norwegian Dream served to punctuate the severe damage to the ship's bow and bridge. Meanwhile, Royal Caribbean executives spent a few days at the end of the summer touring ports in Alaska to apologize in person for pollution left in the state's waters by the cruise line's ships. Royal Caribbean agreed to pay an $18 million fine to U.S. authorities for dumping oily bilge and chemical wastes at sea, as well as into U.S. ports and wild waterways. The line pleaded guilty to 21 felonies, including falsifying logs and lying to the U.S. Coast Guard, and admitted Royal Caribbean ships were rigged with secret bypass pipes, which were used to dump used dry-cleaning chemicals and other waste. The fine, the highest ever assessed by a cruise line for polluting U.S. waters, followed $9 million in fines Royal Caribbean agreed to pay in 1998. The Silver Lining Although the cruise market has endured recent rough waters, it is a solid bet that the industry will continue to design, build and deliver vessels that help meet the burgeoning demand of cruise passengers, while meeting the demands for more luxurious accommodations and diversity of activities on board.