Systemic risk of cruise ship incidents from an Arctic and insurance perspective

Abstract

Easier accessibility and demand for so-called last chance tourism has contributed to rapid growth in Arctic cruise ship tourism. Arctic cruising brings many benefits to remote coastal communities but also presents an array of risks. In the light of this context, this article explores the concept of systemic risk of cruise ship incidents in general, findings which are then placed in an Arctic context and consideration given of the role the insurance sector may play in addressing cruise ship incidents. The study is based on metadata, both from academic and nonacademic sources. Findings are drawn from 11 global case studies of cruise ship incidents, 5 of which are polar examples. In the worst-case scenario, an array of serious economic, business, environmental, sociocultural, and security impacts may unfold in the Arctic, presenting risks that may be considerably worse than in other parts of the world. Arctic-specific challenges include extreme weather conditions and the presence of sea-ice, navigation and communication conditions, and lack of infrastructure (port facilities, Search and Rescue capabilities). Significant knowledge gaps across the Arctic have been identified, for example, in terms of seabed mapping, how to deal with industry-related activities, and the risks and nature of environmental change. When cruise ship risks in the Arctic are considered, both passenger and shipowner risk need to be accounted for, including Search and Rescue cover. Although data are limited, there is evidence that the sociocultural risks of an Arctic cruise ship incident are insufficiently addressed, either via insurance mechanisms or cross-border, navigational safety guidelines such as the Polar Code. The academic contribution of the study is the systemic scale of the analysis, and the practical and political implications are to lay the foundation for solution discussion that is of relevance in an Arctic and insurance context.

Arctic adventure cruise shipping network: Itinerary characteristics and spatial structure

“…These regions can develop higher-end Arctic cruise itinerary products, even raise the cruise operation barriers constrained by environmental factors, and actively achieve the balance between economy and environment through regional cooperation (Shijin et al, 2020). (2) For the Greenland sub-core cluster with Kangerlussuaq port as its core departure port, cruise tourism has brought considerable economic income and employment opportunities to the local area (Cook & Johannsdottir, 2021). But Kangerlussuaq port itself does not have a large land source market, and the organisation of its original itinerary benefits from the design of the "air-cruise itinerary."…”

“…The development of cruise ports in the Arctic and their development into special cruise tourism destinations can contribute to regional economic growth, additional income and employment opportunities (Fridriksson, Wise, & Scott, 2020). However, the over-development of cruise tourism will also lead to the negative impact of human activities on the fragile ecosystem of the Arctic region (Johannsdottir, Cook, & Arruda, 2021), for example, ship fuel leakage (Helle, Mäkinen, Nevalainen, Afenyo, & Vanhatalo, 2020), air and noise pollution (Chen et al, 2021), plastic pollution (Bergmann et al, 2022) and disturbance of marine species and wildlife caused by ship passage (Halliday et al, 2022). At the same time, the large number of tourists entering the polar regions will also have an impact on the daily life of the indigenous peoples in the Arctic region (Viken, Hockert, & Grimwood, 2021).…”

Flying against the clock – risk management and resilience in Arctic search and rescue and casualty evacuation flights

“…There may also be an increase in the number of potential patients requiring rescue as more vessels navigate trans-Arctic shipping routes, conduct high latitude commercial fishing or engage in polar tourism (AECO 2019;PAME 2020). It is worth noting that of the passenger demographic on board cruise vessels, it tends to be those over 65 who require emergency treatment (Johannsdottir et al 2021), and while cruise ships may well be equipped with their own medical facilities, airborne casualty evacuation (casevac) may still be required for some cases. 10 Ting (2011) has objected to an inference by Norum and Elsbak (2011) that an increment in expedition ship tourist traffic to Arctic Norway could lead to an increased requirement for aeromedical evacuation.…”

The role of polarseaworthiness in shipping planning for infrastructure projects in the Arctic: The case of Yamal LNG plant

“…The climatic factor influences the thickness, concentration and extent of ice during the year and is difficult to predict on a daily basis. This level of unpredictability renders navigation in this area highly complex (ABS, 2014;Fu et al, 2016), risky (Marchenko, 2012;Johannsdottir and Cook, 2014;Montewka et al, 2015;Haavik, 2017;ALLIANZ, 2018) and implies the use of ice class vessels as encouraged by the NSR Administration (NSRA, 2017). Marchenko (2014) and Zhang et al (2020) stressed the importance of suitable speed in Arctic waters and Löptien and Axell (2014) underlined its relationship with ice conditions and the vessel's ice class.…”