The three biggest car carrier casualties in recent years have cost marine insurers close to $900m, according to analysis by insurers — and that figure is still rising.

Most of the claims figures are related to the loss of the 7,700-ceu Golden Ray (built 2017), which capsized at the US port of Brunswick in September last year.

Figures presented at the International Union of Marine Insurance (IUMI)’s annual conference show the loss of the Hyundai Glovis car carrier has already cost marine insurers an eye-watering $645m, with the salvage bill potentially rising as the wreck removal continues.

Work to dismantle the wreck has been temporarily suspended due to problems related to the Covid-19 pandemic.

The IUMI figures, collated from a number of sources, reveal the loss of 4,000 cars on board the ship has rung up cargo claims amounting to $100m.

Protection and indemnity insurer the North P&I Club, which is covering salvage and wreck-removal costs, earlier announced this summer that its share of the Golden Ray claim bill will be in excess of $400m. The rest is accounted for by hull and machinery claims for the loss of the three-year-old hull.

The next most expensive claim for marine insurers was a fire on the 5,600-ceu car carrier Sincerity Ace (built 2009) in January 2019, which destroyed 4,000 cars resulting in an $85m cargo claim. P&I and hull and machinery claims brought the total insurance bill for the casualty to $137m.

The fire on the 56,642-gt ro-ro containership Grande America (built 1997) in March 2019 resulted in cargo, P&I, hull and machinery claims totalling $100m, IUMI estimates. A total of 2,210 cars were lost when the ship sank off the coast of Brittany, France.

But there are other significant similar car carrier losses not included in the IUMI figures. A major fire on the 3,320-lane-metre ro-ro containership Grande Europa (built 1998), off Palma de Majorca in May 2019 with 1,843 vehicles lost, was not included in the analysis.

The 4,900-ceu Hoegh Xiamen (built 2010), which was declared a constructive total loss after a fire in Jacksonville in the US this year resulting in a $26m claim for hull underwriters, was also not included.

One problem that is worrying insurers is the growing cost of wreck removal when the casualties result in a total loss.

The IUMI conference also heard that salvors are optimistic of completing the Golden Ray operation, with work scheduled to begin again shortly.

US salvor T&T Salvage, which is handling the wreck removal, told the IUMI conference that the work has also been disturbed by a “very active” hurricane season and the region’s extreme tidal currents.

Other issues include environmental concerns and oversight of environmental protection from the US government and non-governmental organisations.

Containing pollution

But Mauricio Garrido, president of T&T Salvage, told the IUMI conference: “We think that in the next few months we should successfully complete the work.”

In cooperation with the local authorities, the salvage company has gone to extreme lengths to make sure the salvage job is done without damaging the environment.

A fence has been built with steel poles around the wreck to contain any pollution.

A US-flag heavylift ship has been brought in to carry away the ship’s mid sections, where most of the cars are located. A dry dock has been brought in to dismantle sections of the vessel, while a five-acre site has been rented near the port where wrecked cars will be recycled.