Cost of Felicity Ace Ro/Ro Fire Could Top $400 Million
The estimated cost of the Felicity Ace fire may be far greater than previously believed due to the high value of the luxury cars in her vehicle holds, according to an independent insurance consultancy.
The ship was carrying roughly 4,000 cars, including Lamborghinis, Audis and VWs, based on an internal Volkswagen Group email obtained by German media. The manifest included 1,100 Porsches and about 190 Bentleys, many of them custom-ordered by buyers in the U.S.
Risk consultancy Russell Group estimates that the total value of the vehicles on board exceeds $400 million, plus another $38 million in non-vehicle goods. Assuming that the vessel and her cargo are a total loss, the event is expected to create at least $155 million in losses for VW Group, according to an analysis by Russell.
“These figures showed once again the precariousness of global supply chains. The incident comes at a bad time for global carmakers who are in the middle of a supply chain crisis sourcing semiconductors, resulting in new delays for new cars. An event like this will not do a great deal in instilling trust with consumers," said Suki Basi, Russell Group's managing director.
The Felicity Ace under way from Emden, Germany - a major loading port for Volkswagen brands - to Davisville, Rhode Island, and a fire broke out while she was transiting south of the Azores. Her master called for an evacuation on February 16, and the crew was safely rescued by a merchant tanker and transferred to shore.
The ro/ro is still adrift and burning south of the Azores, and she is drifting further away from the islands, according to operator MOL. The vessel remains stable and no oil pollution has been reported.
Two large tugs with firefighting equipment were scheduled to arrive Monday morning, and they will begin spraying cooling water on the Felicity Ace's hull. An additional salvage vessel with more firefighting equipment is under way from Rotterdam and should arrive on February 26.
"Together with the all relevant parties, MOL is making every effort to contain the damage and resolve the situation as soon as possible," the company said in a statement.
An unspecified number of the vehicles are all-electric, battery-powered cars. The captain of the nearby port of Faial told Reuters that the presence of lithium-ion batteries on board is complicating the firefighting effort. Water does not extinguish a Li-ion battery fire, and the fumes from a burning battery are toxic and potentially explosive. The battery packs are "keeping the fire alive," captain of the port João Mendes Cabeças told Reuters.
Car Carrier Felicity Ace Continues to Burn
The car carrier Felicity Ace continues to burn at a location off the Azores, according to the Portuguese Navy. The vessel is carrying thousands of new luxury cars made by Volkswagen Group brands, including Audis, Porsches and Bentleys.
An unspecified number of the vehicles are all-electric, battery-powered cars, and the captain of the nearby port of Faial told Reuters that the presence of lithium-ion batteries on board is complicating the firefighting effort. Water does not extinguish a Li-ion battery fire, and the fumes from a burning battery are toxic and potentially explosive. The battery packs are "keeping the fire alive," captain of the port João Mendes Cabeças told Reuters, and the blaze has been progressively moving down from its starting point on an upper deck. The cause of the fire has not yet been identified.
The patrol ship NRP Setubal remains on scene to monitor the fire, and multiple salvage vessels are under way to join the effort, according to operator MOL. Two large tugs with firefighting equipment have been chartered to support the salvage effort, and the first one is scheduled to arrive from Gibraltar on Sunday. A second tug from Gibraltar should arrive Monday, and a third from Rotterdam is expected on Feb. 23-24.
The vessel remains stable, and no pollution has been reported, MOL said in an update. All of the crewmembers were evacuated safely on the day the fire broke out, and they have been delivered to shore in the Azores.
In a statement, MOL thanked "the Portuguese Navy, the local authorities in the Azores and those vessels that supported the rescue operation of the crew members in the best traditions of the merchant marine."
Photos: Fire-Ravaged Felicity Ace Adrift off the Azores
The Portuguese Navy released new photos showing the utter devastation to the car carrier Felicity Ace as the vessel continues to drift in the waters approximately 90 nautical miles south of Horta in the Azores. The fire appears to have spread the length of the 656-foot vessel and while she is reported to be stable in mostly calm seas, she has developed a slight list.
The owner and manager of the vessel, Japan’s Mitsui O.S.K. Lines via a subsidiary Snowcape Car Carriers, reports that the crew has all been safely transferred to a hotel in the Azores. At the same time, Boskalis’ SMIT Salvage has transferred a 16 member team to the Azores while large equipment is on route from Spain and the Netherlands to assist with the fire fighting. The initial team was expected to arrive at the vessel today, but ocean-going tugs, however, are not expected to reach the car carrier till possibly next Wednesday, February 23.
The port captain in Horta told Reuters that they continue to monitor the situation along with the Portuguese Navy. However, he said that the hulk would not be permitted to enter their environmentally protected zone. It has been suggested that the salvage team might have to tow the vessel either to the Bahamas or to Europe.
In the meantime, speculation is mounting over the cause of the fire as well as the full scope of the loss. The trade publication Automotive News is now reporting that it obtained information that there are a total of 3,965 cars aboard of which the largest portion is believed to be Porsche, Audi, and VW, but that there could also be nearly 200 Bentleys and an unspecified number of Lamborghini. The trade magazine first reported that analysts are estimating the value of the loss of the cars, without the vessel, at more than $255 million.
One of the points of speculation is centering on the possibility that the vessel was carrying electric vehicles among its load. The car carrier industry has been focusing on the dangers of the batteries used in electric cars with some questioning if they could be the source of the fire. Experts noted even if the batteries had not caused the fire, that they are highly explosive and likely contributed to the spread of the fire on the vessel.
Experts on the scene are reporting that everything above the waterline has now burnt. The pictures supplied by the Portuguese Navy do not show dates or times. While several show the vessel billowing smoke, some appear to show the fire had subsided. Experts are pointing out that batteries on board mean that special equipment will be required to handle the fire fighting efforts.
Car owners have taken to social media to lament the loss of their specially ordered vehicles, some of which they have been waiting months or longer to receive.
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