Roger Blough - The Lawsuit Has Begun

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Guest

Re: Roger Blough - The Lawsuit Has Begun

Unread post by Guest »

I think there's a difference between insured value and replacement value.

Can you insure a 50+ year old vessel at 202X replacement cost? Probably not. A freighter like the Blough is well north of $100M to build new.

13 footers for $2B...I bet they're insured for less. $153M/each...that might be borderline for replacement.
Guest

Re: Roger Blough - The Lawsuit Has Begun

Unread post by Guest »

Rand Bought the entire American Steamship fleet plus the order book for $260m in 2020.

https://www.ship-technology.com/news/ra ... pany-gatx/
Jared
Posts: 798
Joined: December 6, 2014, 4:51 pm

Re: Roger Blough - The Lawsuit Has Begun

Unread post by Jared »

This tells me that we have overvalued the Blough for years on monetary worth. I was guessing she was worth in 2018 $100> million. Looks like she was only worth half that if not a third. This tells me the entirety of the American Fleet is not worth a whole heck of a lot. All 13 footers combined are probably under $2 billion.
guest

Roger Blough - The Lawsuit Has Begun

Unread post by guest »

I came across two documents on the lawsuit that has commenced between the Underwriters of the Machinery and Hull of the Roger Blough (as subrogees or owners of the Roger Blough) and various defendants that have been named in the lawsuit.

The Roger Blough has been declared a Constructive Total Loss as repairs would far exceed $50 million. Her career on the Great Lakes is finished.

Amongst the items noted in the lawsuit filed in the US District Court for the Eastern District of Wisconsin Green Bay Division:

"The Constructive Total Loss of the Roger Blough and Damages Resulting from the Fire
53. The vessel owners and managers made every effort to keep the Roger Blough
from becoming a constructive total loss. Repairs to return the vessel to an operating condition,
however, would require significant expenditures, including dry-docking; asbestos and lead paint
abatement and cleaning; the replacement of electrical distribution and control systems, including
most cabling, the main switchboard, motor control centers, fire detection, ballast controls,
propulsion controls, motors, and emergency generators; the replacement of approximately 452
short tons of vessel structural steel; the replacement of piping and auxiliary systems; the
replacement of the steam system controls; significant repairs to main engine components; the
complete overhaul of the aft house accommodations; and repair or replacement of the shuttle
boom and unloading system.

54. Various repair scenarios were considered, each of which would require the
investment of repair costs far exceeding $50 million.

55. The hull and machinery and increased value Policy providing cover to the Roger
Blough contains an agreed value for the vessel in the amount of $32 million and an increased
value for the vessel in the amount of $8 million. The Policy does not impose a deductible the
event of a constructive total loss."

The documents can be read here: https://archive.org/details/gov.uscourts.wied.102376
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