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GLF update?
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Author:  Guest [ September 11, 2021, 9:35 pm ]
Post subject:  Re: GLF update?

I was always under the impression that GLF was self-insured, and had been since the Winter Navigation experiments of the 1970s. Or with the purchase of the fleet by CN Rail, did the amount self-insured become a 50/50 or a 33.3/33.3/33.3 coverage?

Thanks for any clarification, if such information is publicly available.

- Brian

Author:  GuestfromEU [ September 11, 2021, 9:23 am ]
Post subject:  Re: GLF update?

To add one thought, no major repairs are exclusively paid "out of pocket". The vessel owners have P&I and H&M cover, insurance in other words. There is a deductible, likely in range of USD 100,000 to 250,000 depending on many variables, possibly a percentage of total repairs as well, and other associated costs. Point is the ship owner will not be liable for USD 5m in total repair costs, for example. If the H&M club determines repairs are in excess of coverage or vessel net value that is a different story, but this would not be the case unless vessel is a total loss like St. Clair.

There may be several H&M clubs involved, as vessels are often covered by multiple insurers at varying percentages. The shipyard will also have multiple insurance policies. The investigations have likely been concluded for a long time. I have not read any definitive work being performed on the Blough. Perhaps there is work ongoing. Price of steel is at record high levels now, which combined with a now soft iron ore market could be reasons to delay repairs. While the Blough incident was big news to the Great Lakes community, it is a relatively minor incident in the eyes of an insurer compared to other incidents globally in a given year. Only the cost of repairs in the USA is reason for the high repair cost as mentioned in the media.

Author:  CSLFAN [ September 10, 2021, 10:16 pm ]
Post subject:  Re: GLF update?

St Clair, Tecumseh and information on the last two and it has been a long time. When the Blough grounded she was repaired quite quickly, I saw a recent photo of her next to the new Barker and she dosen't show much exterior damage but who knows what's inside...CN, the parent company is in a very expensive battle with CP rail to buy Kansas City Southern railroad...wonder if they think a lake boat fleet is worth it along with the CN dock...there must be some insurance money for Blough but Clarke would be all out of pocket and isn't the Republic a charter and not GLF owned? Maybe it will be like the days when Columbia was for sale and there was a for sale sign in all the wheelhouse windows...sailing only 6 boats can't be a great amount of income compared to what the railroad generates and who would buy them?

Author:  Andrew [ September 10, 2021, 6:20 pm ]
Post subject:  GLF update?

I'm not starting this topic for rumors to circulate, but just curious if there is any substantive word on the Blough, Callaway, or Clarke and their condition/status/chance of seeing them in the near future?

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