Page 10: of Maritime Logistics Professional Magazine (Q1 2013)

Cruising With ConÞ denceCruise Lines shrug off tragedy, bad publicity, new regulations and a weak economy to post impressive growth By Barry ParkerInsightsIn the year since the Costa Concordia tragedy, the cruise industry has seen a raft of new regulatory initiatives; in part developed in conjunction with industry associations. Harmonization of multiple regimes is the new mantra for industry stake-holders. In late December, the Florida-based Cruise Line Industry Association (CLIA) announced a tie-up which will result in one worldwide voice for the industry. This development parallels efforts at the IMO, where uniÞ ed poli- cies regarding lifeboat muster drills are expected to be incor- porated into SOLAS; they would come into force in mid 2014. Additionally, the IMOÕs Maritime Safety Committee agreed to add measures developed in conjunction with industry to its Guidelines on Passenger Ship Safety. Meanwhile, the technically innovative but painstaking sal- vage effort at Giglio, where the vessel grounded off the Tuscan coast, by Titan Salvage and an Italian partner, is continuing. If all goes according to plan, the Costa Concordia, righted in a complex operation and then reß oated, would be towed to a yard for scrapping in the summer of 2013. No matter how competently carried out the salvage operation, however, the entire episode reß ected badly on an industry that promotes maritime driven fun and safety. Perceived Fear; Some Growth Instead In the wake of the January 2012 tragedy, there were fears that travelers? fears would keep the passengers away from cruises. In an enviable success story, and against the backdrop of a less than rosy worldwide economy, the industry that had grown by 7.5% annually from 1980 through 2011 (accord- ing to statistics from the CLIA), managed to engineer a major growth spurt occurring in 2010 and 2011 alone ? when total passengers carried exceeded 16 million. In mid-August, 2012, CLIA?s President and CEO, Christine Duffy, told the travel industry pres, ?I think that people under- stand that what happened with the Costa Concordia tragedy was an isolated event ? and ? is not a systemic issue or problem.? When asked about bookings, she suggested that a sampling of CLIA-af liated travel agents were seeing a year over year increase in bookings. Reports from large cruiseship owners bear out what CLIA?s Duffy described as admittedly ??anecdotal evidence?? at that time. At the end of November, 2012, and as Costa Cruis- es? parent company, Carnival Corporation was raising US $500 million in 5 year notes, the rating agency Standard & Oceania Cruises? MARINA at Miami10 I Maritime Professional I 1Q 2013MP #1 1-17.indd 10MP #1 1-17.indd 102/22/2013 10:34:25 AM2/22/2013 10:34:25 AM