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Cruise News for the Corporate Travel Professional

January 2012 Edition

Costa Concordia - Total Loss, massive claim expected

Costa Concordia, the 114,500 gross ton cruise ship that capsized after running aground on the west coast of Italy, is likely to be declared constructive total loss, an Italian broker and industry experts say.

They believe insurance claim to be as high or higher than $500 million. Costa Crociere, which owns the ship,  has not confirmed the fate of the ship yet.

Carnival Corporation & plc, which owns Costa Crociere, said this morning that Costa Concordia will be out of service perhaps into the next financial year of the group that will start on 1 December 2012 and loss of revenue from grounding of the vessel on Friday may reach $95 million.

“A damage assessment review of the vessel is currently being undertaken to determine how long it will be out of service. The vessel is expected to be out of service for the remainder of our current fiscal year if not longer,” Carnival said.

An investigation was opened into the accident. Dutch salvage experts have been called in to assess options for removing the ship, with 2,380 tons of fuel needing to be removed first. Removal of the fuel will be done by Smit Internationale, who have offered to perform the salvage operation.

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