sunsetme Posted May 1, 2019 #1 Share Posted May 1, 2019 https://www.travelweekly.com/Cruise-Travel/Drydock-accident-to-cost-Royal-Caribbean-52-million Link to comment Share on other sites More sharing options...
sandebeach Posted May 2, 2019 #2 Share Posted May 2, 2019 Yes that is an Ouch! But the article states that lost revenue for the three cancelled cruises was a part of that $52 million cost. Link to comment Share on other sites More sharing options...
voyager70 Posted May 2, 2019 #3 Share Posted May 2, 2019 I would think insurance will cover at least some of the loss. Link to comment Share on other sites More sharing options...
The sea calls my name Posted May 2, 2019 #4 Share Posted May 2, 2019 I would have thought a large part would have fallen on the ships yards responsibilty for compensation. 2 Link to comment Share on other sites More sharing options...
voyager70 Posted May 2, 2019 #5 Share Posted May 2, 2019 2 minutes ago, The sea calls my name said: I would have thought a large part would have fallen on the ships yards responsibilty for compensation. I was thinking this would be the case as well. Link to comment Share on other sites More sharing options...
Clarea Posted May 2, 2019 #6 Share Posted May 2, 2019 8 minutes ago, The sea calls my name said: I would have thought a large part would have fallen on the ships yards responsibilty for compensation. I believe Royal has an interest in that shipyard. 2 Link to comment Share on other sites More sharing options...
The sea calls my name Posted May 2, 2019 #7 Share Posted May 2, 2019 2 minutes ago, Host Clarea said: I believe Royal has an interest in that shipyard. Ah, here in lies the rub. 2 1 Link to comment Share on other sites More sharing options...
gatour Posted May 2, 2019 #8 Share Posted May 2, 2019 From my understanding Royal Caribbean does have about a 40 2 minutes ago, Host Clarea said: I believe Royal has an interest in that shipyard. I believe it is at about 40%. I think Carnival also has an interest. From my recollection Carnival first bought an interest and then sometime in the past Royal also bought their stake. Link to comment Share on other sites More sharing options...
GUT2407 Posted May 2, 2019 #9 Share Posted May 2, 2019 That’s what insurance is for Link to comment Share on other sites More sharing options...
AL3XCruise Posted May 2, 2019 #10 Share Posted May 2, 2019 57 minutes ago, GUT2407 said: That’s what insurance is for 1 hour ago, voyager70 said: I would think insurance will cover at least some of the loss. I believe the stated loss already takes applicable insurance into account. From RCCLs earnings press release: On April 1, 2019, Royal Caribbean's Oasis of the Seas was undergoing maintenance at the Grand Bahama Shipyard when an accident involving the drydock caused two construction cranes to collapse on the stern of the ship. The damage to the ship was extensive and the ship had to go to a dock in Europe for repairs. As a result, the ship was taken out of service for almost a month and is expected to return back to service for its normally scheduled May 5, 2019 sailing. The company estimates the direct financial impact of this unusual event, net of insurance, will be a reduction of approximately $0.25 per share to the company's full year Adjusted EPS, mostly driven by lost revenue. 1 Link to comment Share on other sites More sharing options...
PhoenixCruiser Posted May 2, 2019 #11 Share Posted May 2, 2019 2 hours ago, voyager70 said: I would think insurance will cover at least some of the loss. I thought they were self insured? Link to comment Share on other sites More sharing options...
Ashland Posted May 2, 2019 #12 Share Posted May 2, 2019 Get ready for price increases for everything RCI 2 1 Link to comment Share on other sites More sharing options...
Clarea Posted May 2, 2019 #13 Share Posted May 2, 2019 7 hours ago, PhoenixCruiser said: I thought they were self insured? I thoght I read that too. Link to comment Share on other sites More sharing options...
CRUISEFAN0001 Posted May 2, 2019 #14 Share Posted May 2, 2019 I also thought I had read they were self-insured. To put things in perspective...a $50 Million damage cost on a $1 Billion cruise ship would be like a $1500 repair on a $30,000 car. Link to comment Share on other sites More sharing options...
DirtyDawg Posted May 2, 2019 #15 Share Posted May 2, 2019 (edited) As someone said most of that $52 million was lost revenue. The corporation had revenues of $9.5 Billion in 2018. $52 million is .5% of its annual revenue. A flea on the elephant’s backside, annoying perhaps but not an OUCH. Edited May 2, 2019 by DirtyDawg 3 Link to comment Share on other sites More sharing options...
chengkp75 Posted May 2, 2019 #16 Share Posted May 2, 2019 Yes, RCI is about 40% owner of the shipyard, so any damages assessed against the yard will still come from the parent company's bottom line. Not sure whether Hull insurance (typically not self-insured, like Lloyd's of London) or P&I (protection and indemnity, which is self-insured, sort of) will cover the damage to the ship. While RCI is a member of the P&I "Club", and pays premiums to the club based on historical claims, the other shipping lines who are members of the club will spread some of the cost among themselves, but will generally raise premiums the next year to cover the loss. Hull insurance is done by "for profit" companies (I know Liberty Mutual lost a bundle on Concordia), while P&I is a "non-profit" club, where excess premiums over claims can be returned to the members at the end of a year. I don't believe that P&I will cover the lost revenue. 1 Link to comment Share on other sites More sharing options...
Baron Barracuda Posted May 2, 2019 #17 Share Posted May 2, 2019 Imagine shipyard has liability insurance. Shouldn't matter that Royal is part owner. 1 Link to comment Share on other sites More sharing options...
chengkp75 Posted May 2, 2019 #18 Share Posted May 2, 2019 1 hour ago, Baron Barracuda said: Imagine shipyard has liability insurance. Shouldn't matter that Royal is part owner. True, but that means the premiums will go up, and RCI will end up paying part of those. 2 Link to comment Share on other sites More sharing options...
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