GLF update?

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Guest

Re: GLF update?

Unread post by Guest »

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
GuestfromEU
Posts: 326
Joined: December 7, 2014, 10:33 am

Re: GLF update?

Unread post by GuestfromEU »

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.
CSLFAN

Re: GLF update?

Unread post by CSLFAN »

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?
Andrew

GLF update?

Unread post by Andrew »

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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