Investigation of Maritime Accidents’ Communication Management: Case Studies

1. Investigation of Maritime Accidents’ Communication Management: Case Studies K. Giziakis, K. Bountri Department of Maritime Studies University of Piraeus

2. Contents – Presentation Structure • A short introduction • Communicational Management of the Crisis: • Before the Accident • Post-Accident • Case Studies: • Costa Concordia (2012) • Rena (2011) • Sea Diamond (2007)

3. Introduction • Safety and zero number of accidents is a priority for the Maritime Industry. • However, Marine Accidents are an unpleasant reality with multidimensional consequences. • Building and maintaining the Company’s reputation. In this pivotal checkpoint, Crisis Management enters the scene to reverse the adverse climate in the public consciousness.

4. Crisis Communication Management Some characteristics of our Era, concerning Crisis Communication Management: • Internet-based communication e.g. Facebook, Twitter, google+, YouTube, LinkedIn et.c. • Faster transmission and coverage of news by social media (internet-based or traditional) e.g. two years ago a message needed approx. 2h to be conveyed, whereas now it requires only 30min (source: Baltic Exchange)

5. The importance of social media • 850+ million accounts, 31% check-in once a day • 500 million accounts, 175 million tweets per day • 800 million users’ uploads/month, 4 billion views/day (source: Baltic Exchange)

6. Before the Accident Some basic guidelines: • Crisis Communication Management has a proactive character. • Plan of actions must be in place (and should be updated at least annually). • Up-to-date media group contacts (and information). • Suitably prepared communication team. Remember:All Company Employees are potential “spokesmen”.

7. Post-Accident • The importance of the Company’s first reaction. • “We are aware of..” / “We know of..”. • Never say:“No Comment”. • The Company should make a statement at the first critical hours. • …Otherwise others will talk on her behalf… The key word is “CONTROL”.

8. The Company’s Spokesman He / She should: • Come in public within the first hours. • Express sadness for the accident. • Lay down the facts even if it means admitting there is a problem. • Assume all the responsibilities. • Present the available information with clarity. • Remain calm, do not show nervousness or anger. • Express intent to reimburse all damages.

9. Key points for the Company • Create a contact line through which afflicted parties can be informed of the latest developments. • Create a dedicated website (or a specific section in the existent internet portal). • All partners, associates, suppliers et.c. should be kept up to speed through constant contact. Direct approach – Reliability – Honesty

10. Case Studies

11. Costa Concordia • Cruise ship; run aground on the eastern reef of Isola Del Gilio (Italy), on the night of the 12thof January, 2012. • Totaled 3.224 passengers. • 1.023 crew members. • 32 passengers passed away.

12. Crisis Management • Company’s first reaction was via its Facebook profile page, late at the same night. • First press release on the 14th of January. • First official press conference on the 16th of January. • By that time, all social media had been flooded with images, video, analyses and comments. • On the 19th of January, the Company completely suspended posting through Facebook & Twitter.

13. A few comments • Lack of Spokesman (it took three days to organize a press conference). • Lack of preparation and planning. • The Captain appeared to have abandoned the Ship and denied to obey the Coast Guard Captain’s order to return to his Ship. • The Company fully blamed the Captain, naming him the sole responsible for the accident. • The Crew appeared unready to deal with this emergency situation.

14. The Company after the accident • The Carnival Corporation’s share fell by 20% on the first days. • Compensations total to $500 million. • The hoisting of the massive shipwreck is expected to cost around $400 million (estimated to take place on Sept 2013). • Economic losses for 2012 reported only for Costa Cruises. • At April 2013 the Company received a $1 million fine, which exempted it from a criminal trial. • The ex-Captain and the Company’s responsible for crisis management will be indicted for trial.

15. Rena • Containership; flying the Liberian flag. • 1.368 containers, 1.700 metric tonnes of heavy fuel oil. • 200 metric tonnes of marine diesel oil & 8 containers with hazardous material. • On the 5th of October 2011, she run aground on the Astrolabe Reef, New Zealand. • 350 tonnes of oil and 300 containers released into the sea. • By the 10th of October, oil began to wash ashore at Mount Maunganui. • By the 13th of October, all beaches in the affected area were closed to the public.

16. Crisis Management • A group of representatives was sent immediately at the site of the accident. • A press conference was given by the Company’s Managing Director at the 12th of October. • He admitted that “obviously something went very wrong”. • He emphasized that the Company is prepared to fully comply with all liabilities. • Best experts had already been mobilized to contribute to contain the environmental disaster.

17. Post Accident Impact • Rena was classified as complete loss. • The fine imposed by the Government of New Zealand amounted to $22,6 million. • For 2012, there was a drop of 12% of the Company’s profits. • One and a half year later, statements which support that the affected area has recovered reinforce the Company’s public image.

18. Sea Diamond • Cruise Ship; owned by “Louis Cruise Line Ltd”. • On the 5th of April 2007, she run aground on a volcanic reef off the port of Santorini. • Two human lives lost. • Heavy polluting of the environment.

19. Crisis Management • First official statement was released 24h after the accident. • Press releases, media interviews and appearances of Company’s General Manager ensued. • The Company displayed willingness to provide information to whoever was interested. • The Company undertook the responsibility to investigate the accident.

20. Crisis Management • The Company defended her Captain, emphasizing his skillsets. • Full cooperation with suitable companies in order to avoid an oil spill. • The Company denied the -“unfair” for her- fine of €1,17 million by the Ministry of Mercantile Marine for “causing pollution”. • The safe transport and return home for all passengers was a priority as well as the compensation related to the Cruise.

21. Post Accident Impact • Two months after the accident, shareholders were informed that the negative impact came to €10 million. • A new campaign was launched immediately to boost the Company’s brand name. • The Group’s hotels faced a crisis during 2007-2008, which lead to the Company’s share lose value in the Cyprus Stock Exchange. • The Company managed to overcome and in 2008 she purchased a new hyper-modern Cruise Ship.

22. Conclusions • The common ground for all three accidents was the large extend of publicity and media coverage. • The Companies did not neglect the Press. • However, all presented Companies deviated from the suggested time of reaction. • All Companies managed to soften the impact on their public image: • Costa Cruises Captain’s “sole responsibility” steered the Media away from the Company. • Costamare managed to give away the clear image of a responsible Company. • Louis Cruise displayed an extroverted attitude concerning the Media.

23. Thank you!