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Cruise Industry Oversight: Recent Incidents Show Need for Stronger Focus on Consumer Protection

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Cruise Industry Oversight: Recent Incidents Show Need for Stronger Focus on Consumer Protection S. HRG. 113–642 CRUISE INDUSTRY OVERSIGHT: RECENT INCIDENTS SHOW NEED FOR STRONGER FOCUS ON CONSUMER PROTECTION HEARING BEFORE THE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION UNITED STATES SENATE ONE HUNDRED THIRTEENTH CONGRESS FIRST SESSION JULY 24, 2013 Printed for the use of the Committee on Commerce, Science, and Transportation ( U.S. GOVERNMENT PUBLISHING OFFICE 94–526 PDF WASHINGTON : 2015 For sale by the Superintendent of Documents, U.S. Government Publishing Office Internet: bookstore.gpo.gov Phone: toll free (866) 512–1800; DC area (202) 512–1800 Fax: (202) 512–2104 Mail: Stop IDCC, Washington, DC 20402–0001 VerDate Nov 24 2008 12:32 May 14, 2015 Jkt 075679 PO 00000 Frm 00001 Fmt 5011 Sfmt 5011 S:\GPO\DOCS\94526.TXT JACKIE SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION ONE HUNDRED THIRTEENTH CONGRESS FIRST SESSION JOHN D. ROCKEFELLER IV, West Virginia, Chairman BARBARA BOXER, California JOHN THUNE, South Dakota, Ranking BILL NELSON, Florida ROGER F. WICKER, Mississippi MARIA CANTWELL, Washington ROY BLUNT, Missouri MARK PRYOR, Arkansas MARCO RUBIO, Florida CLAIRE MCCASKILL, Missouri KELLY AYOTTE, New Hampshire AMY KLOBUCHAR, Minnesota DEAN HELLER, Nevada MARK WARNER, Virginia DAN COATS, Indiana MARK BEGICH, Alaska TIM SCOTT, South Carolina RICHARD BLUMENTHAL, Connecticut TED CRUZ, Texas BRIAN SCHATZ, Hawaii DEB FISCHER, Nebraska MARTIN HEINRICH, New Mexico RON JOHNSON, Wisconsin EDWARD MARKEY, Massachusetts JEFF CHIESA, New Jersey ELLEN L. DONESKI, Staff Director JAMES REID, Deputy Staff Director JOHN WILLIAMS, General Counsel DAVID SCHWIETERT, Republican Staff Director NICK ROSSI, Republican Deputy Staff Director REBECCA SEIDEL, Republican General Counsel and Chief Investigator (II) VerDate Nov 24 2008 12:32 May 14, 2015 Jkt 075679 PO 00000 Frm 00002 Fmt 5904 Sfmt 5904 S:\GPO\DOCS\94526.TXT JACKIE C O N T E N T S Page Hearing held on July 24, 2013 ............................................................................... 1 Statement of Senator Rockefeller ........................................................................... 1 Statement of Senator Thune ................................................................................... 24 Statement of Senator Nelson .................................................................................. 32 Statement of Senator Schatz .................................................................................. 125 Statement of Senator Begich .................................................................................. 128 Statement of Senator Blumenthal .......................................................................... 131 Statement of Senator Markey ................................................................................. 133 WITNESSES Rear Admiral Joseph Servidio, Assistant Commandant for Prevention Policy, United States Coast Guard ................................................................................. 25 Prepared statement .......................................................................................... 27 Ross A. Klein, Ph.D., Professor, Memorial University of Newfoundland in St. John’s, Newfoundland, Canada ..................................................................... 33 Prepared statement .......................................................................................... 35 Hon. Mark Rosenker, Former Chairman, National Transportation Safety Board and Member, Cruise Line International Association’s ‘‘Panel of Ex- perts’’ ..................................................................................................................... 92 Prepared statement .......................................................................................... 94 Gerald Cahill, President and Chief Executive Officer, Carnival Cruise Lines ... 114 Prepared statement .......................................................................................... 114 Adam M. Goldstein, President and Chief Executive Officer, Royal Caribbean International ......................................................................................................... 118 Prepared statement .......................................................................................... 120 APPENDIX Letter dated August 19, 2013 to Senator John D. Rockefeller IV from Kathy A. Notarianni, Ph.D., P.E., Head, Department of Fire Protection Engineer- ing; Associate Professor, Fire Protection Engineering and Associate Pro- fessor, Mechanical Engineering and Chemical Engineering, Worcester Poly- technic Institute ................................................................................................... 147 Response to written questions submitted to Rear Admiral Joseph Servidio by: Hon. John D. Rockefeller IV ............................................................................ 148 Hon. Barbara Boxer ......................................................................................... 150 Response to written questions submitted to Gerald Cahill by: Hon. John D. Rockefeller IV ............................................................................ 151 Hon. Barbara Boxer ......................................................................................... 154 Hon. Maria Cantwell ........................................................................................ 154 Response to written questions submitted to Adam M. Goldstein by: Hon. John D. Rockefeller IV ............................................................................ 156 Hon. Maria Cantwell ........................................................................................ 158 Response to written questions submitted by Hon. John D. Rockefeller IV to Ross A. Klein, Ph.D. ........................................................................................ 159 (III) VerDate Nov 24 2008 12:32 May 14, 2015 Jkt 075679 PO 00000 Frm 00003 Fmt 5904 Sfmt 5904 S:\GPO\DOCS\94526.TXT JACKIE VerDate Nov 24 2008 12:32 May 14, 2015 Jkt 075679 PO 00000 Frm 00004 Fmt 5904 Sfmt 5904 S:\GPO\DOCS\94526.TXT JACKIE CRUISE INDUSTRY OVERSIGHT: RECENT INCIDENTS SHOW NEED FOR STRONGER FOCUS ON CONSUMER PROTECTION WEDNESDAY, JULY 24, 2013 U.S. SENATE, COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION, Washington, DC. The Committee met, pursuant to notice, at 2:40 p.m., in room SR–253, Russell Senate Office Building, Hon. John D. Rockefeller IV, Chairman of the Committee, presiding. OPENING STATEMENT OF HON. JOHN D. ROCKEFELLER IV, U.S. SENATOR FROM WEST VIRGINIA The CHAIRMAN. I thank all of you for being here. And I will pro- ceed with an opening statement, followed by Senator Thune, and then we will go directly to testimony, and then we will have a live- ly discussion. Millions of Americans enjoy taking cruises every year. I com- pletely understand why. Cruise lines sell people a fun-filled, once- in-a-lifetime dream vacation. Probably with that in mind, I guess, two my children have taken cruise line ships. And sometimes they get that dream. Sometimes they get that dream. 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 oc- curred on cruise ships, I held a hearing in this room to get answers about why passengers sometimes find themselves in harm’s way. It was a serious attempt to get answers. The leader of the Cruise In- dustry Trade Association sat right there and told me, basically, to trust her—that doesn’t come easily in the Senate, right?—to trust that the industry was engaged in a rigorous review of safety proce- dures that would fix everything. I did not entirely believe her at the time, but I felt like the industry needed a fair chance to correct their course. It has now been 16 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. And I’m sorry about that. This con- duct should make us all very 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 16 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? That happens. (1) VerDate Nov 24 2008 12:32 May 14, 2015 Jkt 075679 PO 00000 Frm 00005 Fmt 6633 Sfmt 6633 S:\GPO\DOCS\94526.TXT JACKIE 2 I seriously worked to improve the safety and security of these ships. Why have we witnessed so many serious incidents in the last 16 months? I believe the culture of safety that Americans expect, as they should, is clearly not always a priority for cruise lines. That’s not necessarily restricted to cruise lines, I might say. I can think of a number of American industries where I might make the same comment. 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, for quite a long while, 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 somebody steals your property or assaults you on a cruise ship, you cannot, obvi- ously, call 911 and have the police there in a few minutes; you can only call the ship’s security
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