Saturday, April 21st, 2018

Costa Concordia: The Most Expensive Shipwreck in History

“The most expensive shipwreck ever,” that’s what Costa Crociere stockholders were told at their shareholder’s meeting in late March, according to the meeting minutes, reported this week  in this detailed story (in Italian) by La Stampa.

The Costa Crociere price tag for the Costa Concordia accident? 15 million euros, including direct and indirect costs not covered by insurance. Nonetheless it is still less than the 19 million euro cost of the Costa Allegra incident just over a month later when the engine room caught fire leaving the cruise ship adrift in the Indian Ocean.  There were no injured or deaths in the Costa Allegra incident, but the company had to pick up the cost of the 70% of guests who chose to continue their vacation in Seychelles hotels.

La Stampa also referenced a Moody’s report on how the cruise sector will be impacted by the Costa Concordia shipwreck, which is expected to bring compensation requests of 1 billion dollars. As for the cruise giant Carnival Cruise Lines, the company closed its fist trimester of 2012 with a $139 million loss, and managers in a conference call said they expect $100 million loss for the Costa Crociere brand in 2012, according to the report. Weighing down Carnival’s earnings were “$29 million for the Concordia accident” and another $34 million” for the fire aboard the Costa Allegra, La Stampa reported.


In other news, as the July court date for a review of the black box data from the Costa Concordia nears, the inevitable leaks of the recordings are making their way into the Italian media. This week Tgcom24 trasmitted a portion of the conversation that unfolded on the deck in the moments just before the ship hit the rocks off Giglio.

You can hear Captain Schettino talking with his crew and then five minutes after he is conversing with the crisis management team of Costa Crociere when he says “there are two compartments flooded . . . we are not going to sink, no we are not going to . . . . In a little while I’ll lower the anchor and we’ll stay here, then we’ll need to call a tug. Eh, I know. I know. It’s my fault.”

Just before 23 after they have anchored, there’s the conversation about whether or not to give the abandon ship order, after dilly-dallying around, he finally says: Let’s give the abandon ship, ok, give this announcement. No, instead of “abandon ship” you say “take the passengers to land.”

La Nazione has rebroadcast a portion of the recorded voice data in a story they published today. You can listen to it on their site by clicking here  and then playing the video at the bottom of the story(in Italian, of course).

The lawsuits, both in Italy and the U.S., continue to move forward, meanwhile. Most recently, two musicians and two dancers filed suit in U.S. Federal Court, asking $50 million in damages apiece. The Italian trial is set to begin in July in Grosseto.
The Titan Micoperi salvage plan meanwhile is still taking shape, as the various players jostle into position. For English-language updates on the technical aspects of the salvage operation, check outthe site of  documentary production company FACT TV.
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