How Did the Cruise Industry Become Synonymous With Disaster?

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There’s always been a kind of lawlessness out on the high seas.

” of 2013, Carnival Corporation is once again in turbulent waters, this time because of the coronavirus crisis. Even after countries began to lock down, Carnival ships remained at sea, floating offshore, waiting for safe harbor, with no ports willing to accept them—which left crew, and in some cases passengers, stuck aboard in awful conditions. More than 1,500 people aboard Carnival ships were eventually diagnosed with the coronavirus. Dozens died, some of them on board.

Once upon a time, ships were basically the only way to get from one side of the ocean to the other. These ships got faster and bigger until the middle of the 20century, when ocean liners were at their peak. In 1952 an American ship set a record by crossing the Atlantic in 3½ days, which is really fast for a ship. The problem, obviously, is that airplanes are much faster than that, and by the mid–20century they were cheap and comfortable enough to take over.

Arison realized that ticket sales weren’t the only way to get people’s money. Once you had people aboard the ship, in a sort of captive situation out on the water, you could sell them copious amounts of liquor at the ship’s bars and drain their wallets at the ship’s casinos. Onboard revenue became a key to Carnival’s success.

“Cruise ships don’t really belong to any one country. That gives them a degree of arrogance and allows things to go on that wouldn’t go on on“Part of it goes back to the history of the cruise industry,” Ross Klein says, “which goes back to admiralty law or maritime law, where cruise ships operate on the high seas and don’t really belong to any one country. That gives them a degree of arrogance and allows things to go on that wouldn’t go on on land.

 

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It's a risky trade, but Credit Suisse makes the case for two cruise line stocks to soarFor subscribers: It's a risky trade, but Credit Suisse makes the case for two cruise line stocks to soar Check out CNBCPro for a free trial. Pro I see a bright future in a cruise industry. Gonna be jammed packed with elderies enjoying their retirement🙄 with the money they won't have Pro Nobody knows how the virus will play out, or if customers will return in time to save the cruise lines. The 'bold calls' these investment shops get right are grist for their marketing mill, and the ones they get wrong are to be forgotten. That's how they get to be 'experts'. Pro How much does Credit Suisse pay you to advertise this? They're in big trouble with their loan losses on cruise liners.
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