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
GLF update?
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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.
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.
Re: GLF update?
St Clair, Tecumseh and Blough....no 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?
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?