Transcript presentation

Investigation of Maritime Accidents’
Communication Management: Case Studies
K. Giziakis, K. Bountri
Department of Maritime Studies
University of Piraeus
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)
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.
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)
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)
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”.
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”.
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.
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
Case Studies
Costa Concordia
• Cruise ship; run aground on the eastern reef of Isola
Del Gilio (Italy), on the night of the 12th of January,
2012.
• Totaled 3.224 passengers.
• 1.023 crew members.
• 32 passengers passed away.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
Thank you!