Far Eastern insurers face an $87m bill if the Golden Ray is declared a constructive total loss (CTL), according to an analyst’s report.
The 7,700-ceu, 2017-built car carrier grounded off the US port of Brunswick, Georgia, last month after apparently suffering stability problems.
South Korea’s Daishin Securities, which has a “buy” recommendation on Golden Ray owner Hyundai Glovis, said in its company equity analysis that the specialised car logistics outfit has KRW 104.7bn ($87.4m) of cover for loss of the hull.
The cover is understood to be placed in the Far East.
Brokers estimate the market value of the two-year-old hull to be $75m.
However, it is not unusual for hull cover to be in excess of market value. The high value of cover suggests Hyundai Glovis would have to turn to the newbuilding market to replace the vessel.
Salvage experts suggested that at this stage the Golden Ray is unlikely to be declared a CTL, given the high value of cover.
Vessels are declared a loss only if the cost of repair exceeds the insured value.
However, the longer the vessel is aground, the higher the likelihood that it could be declared a CTL.
Salvage operations, headed by US firm Donjon Marine, are underway. But salvors will have to ensure there are no further pollution risks from bunkers or fire from the cargo of 4,000 cars before a refloat is attempted.
It looks as though there is still anti-pollution work to be done before a refloat can be attempted. Bunker fuel from the grounded hull was reported to be heading for shore.
