Cruise Industry Oversight: Recent Incidents Show Need for Stronger Focus on Consumer Protection
02:30 PM Russell Senate Office Building 253
WASHINGTON, D.C.— The U.S. Senate Committee on Commerce, Science, and Transportation will hold a hearing on Wednesday, July 24, 2013 at 2:30 p.m. titled, “Cruise Industry Oversight: Recent Incidents Show Need for Stronger Focus on Consumer Protection.” At the hearing, Chairman John D. (Jay) Rockefeller IV will review the current state of consumer protection in the cruise industry in light of recent safety and security incidents that endangered thousands of Americans travelling aboard cruise ships.
“I’ve been told time and again that cruise lines will change, that things will get better for passengers. But according to our investigation, it doesn’t seem like things have changed,” said Rockefeller. “I’m coming to this hearing with an open mind, but so far the cruise lines haven’t been willing to make enough changes that matter on their own. I expect straightforward answers from our witnesses, not more empty promises about how things will get better after the next safety review.”
This hearing builds on Chairman Rockefeller’s ongoing robust oversight of the cruise industry. In March 2012, after a series of alarming safety incidents on cruise ships, he held a hearing on whether cruise industry regulations sufficiently protect passengers. Since then, several serious incidents have occurred on cruise ships. One of the most notable was the Carnival Triumph fire in February 2013, which left passengers stranded at sea for days without power, plumbing, and adequate food sources. After this incident, he wrote Admiral Papp, Commandant of the Coast Guard, and Micky Arison, Chairman of the Board and then-CEO of Carnival. Rockefeller has also written the CEOs of Carnival, Royal Caribbean, and Norwegian Cruise Line for more information about their passenger safety, security, and health practices.
Please note the hearing will be webcast live via the Senate Commerce Committee website. Refresh the Commerce Committee homepage 10 minutes prior to the scheduled start time to automatically begin streaming the webcast.
Individuals with disabilities who require an auxiliary aid or service, including closed captioning service for webcast hearings, should contact Collenne Wider at 202-224-5511 at least three business days in advance of the hearing date.
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Majority Statement
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Senator John D. (Jay) Rockefeller IV
ChairmanU.S. Senate Committee on Commerce, Science, and TransportationMajority Statement
Senator John D. (Jay) Rockefeller IV
Millions of Americans enjoy taking cruises every year. And I completely understand why. Cruise lines sell people a fun-filled, once in a lifetime dream vacation. Sometimes that is what they get. But as we all know, sometimes cruises hit rough waters and that dream can turn into a nightmare.
In March 2012, after several very troubling safety incidents occurred on cruise ships, I held a hearing in this room to get answers about why passengers sometimes find themselves in harm’s way. The leader of the cruise industry’s trade association sat right where all of you are sitting and told me, basically, to trust her. To trust that the industry was engaged in a rigorous review of safety procedures that would fix everything.
I did not entirely believe her at the time, but felt like the industry needed a fair chance to correct their course. It has been sixteen months since that hearing, and I have not seen much evidence that things have changed. Since that hearing, since those empty promises, serious incidents continue to plague cruise ships. This conduct should make us all angry.
If the industry is seriously working to improve the safety and security of its ships, why have we witnessed so many serious incidents in the last sixteen months? Is the industry really trying to adopt a culture of safety? Or are these safety reviews and temporary investments a cynical effort to counter bad publicity?
I believe the culture of safety that Americans expect – as they should – is clearly not always a priority for cruise lines. Cruise ships on fire and drifting at sea tend to make headlines, and we know how they impact passengers. But cable news doesn’t cover the many crimes committed against individual passengers on cruise ships, which are just as concerning to me.
We have been reviewing the industry for a while now and have found some sobering details. Consumers have the right to know what we have learned before they book their first, or next, dream vacation. For instance, if someone steals your property or assaults you on a cruise ship, you cannot call 911 and have the police there in a few minutes. You can only call the ship’s security officers – who also happen to be employees of the cruise line.
The cruise industry has fought to limit when and where passengers can file lawsuits, so it becomes incredibly difficult, if not impossible, to right these wrongs. To make things worse, under current law, cruise ship crime report data is not available to the public. That means consumers have no way to find out what their real risks are before they book a cruise.
During the past few months, my staff has been analyzing the FBI crime report data that does not get publicly released. They recently submitted a report to me on cruise ship crime rates. I ask unanimous consent to put this staff report in the record of this hearing.
Our exhaustive oversight of the cruise industry, and the recent events that have left thousands stranded at sea, make it absolutely clear that more needs to be done. So, this week, I took action. I introduced new legislation to make the common-sense consumer protection improvements the cruise lines have not been willing to make on their own. Consumers deserve to know what rights and protections they have and, more importantly, do not have, on their cruise.
I have been assured repeatedly by the industry that things will get better. Take a look at the events over the past sixteen months and tell me if this is what you think better looks like. Cruise lines are on notice that the safety and protection of passengers is now their number one priority, whether they like it or not.
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Minority Statement
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Senator John R Thune
SenatorU.S. Senate Committee on Commerce, Science, and TransportationMinority Statement
Senator John R Thune
Thank you Mr. Chairman for holding this hearing today. Also, thank you to our witnesses for being here to testify.
Ensuring safety across all modes of transportation is one of this Committee’s most important functions, and recent events in several modes — whether by air, rail, or sea — have demonstrated how challenging this can be.
This task can be made even more difficult when a vessel, like a cruise ship, must travel through several jurisdictions during a single voyage.
For instance, when a cruise ship embarks from a U.S. port, the cruise line must ensure compliance with safety regulations through coordination with the industry, the U.S. Coast Guard, and with foreign governments in countries through which the cruise ship is passing, either by sailing in foreign territorial waters or docking at a port within a foreign government’s jurisdiction.
While the cruise ship industry’s safety record is generally good, there have been a few troubling incidents in recent years. The most tragic of these was the fatal accident involving the Costa Concordia, which ran aground off the coast of Italy in 2012.
Thankfully, other recent incidents, including those involving ships departing from U.S. ports, have not resulted in fatalities or significant injuries.
Nevertheless, these particular incidents, which received significant media attention, did underscore the challenges and discomfort that passengers can be subjected to — including days without power or plumbing — and raised questions about the protections afforded to U.S. passengers.
In the wake of these incidents, the cruise ship industry has taken several noteworthy steps to further ensure the safety and comfort of its customers and crews.
The industry should be commended for its adoption of the “Cruise Industry Passenger Bill of Rights,” which includes the right to disembark from a ship if essential provisions cannot be provided, the right to a refund for a trip canceled due to mechanical failures, and the right to an emergency power source in the case of a generator failure.
As the Chairman has noted, however, the Committee has an interest in ensuring that these commitments are translating into better experiences for passengers. So, I look forward to hearing more from our witnesses about these and other steps the cruise industry has taken to improve safety.
Additionally, I am interested in hearing from the Coast Guard about any recommendations stemming from their investigations of recent cruise ship incidents and the work they are doing at the Cruise Ship National Center of Expertise in Everglades, Florida.
Thank you again Mr. Chairman for holding this hearing and thank you to the witnesses for their willingness to testify.
Testimony
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Rear Admiral Joseph Servidio
Assistant Commandant for Prevention and PolicyUnited States Coast GuardDownload Testimony (208.27 KB) -
Dr. Ross Klein
Professor, School of Social WorkSt. Johns College, Memorial University of NewfoundlandDownload Testimony (570.97 KB) -
The Honorable Mark Rosenker
Former Chairman, National Transportation Safety BoardMember of the Cruise Line International Association's "Panel of Experts"Download Testimony (790.50 KB) -
Mr. Gerald Cahill
President and CEOCarnival Cruise LinesDownload Testimony (48.19 KB) -
Mr. Adam Goldstein
President and CEORoyal Caribbean InternationalDownload Testimony (1.99 MB)