First estimate report
Car freighter fire could cost up to 300 million euros
08/09/2023 08:31 am
The “Fremantle Highway” burns off the Dutch North Sea coast for days. The car freighter has loaded around 3,800 vehicles, according to one report, all of them will probably have to be scrapped. According to an initial estimate, the fire could be expensive for insurers.
According to a media report, the fire on the car freighter “Fremantle Highway” will cost insurers around 240 to 300 million euros. This reports the “Southgerman newspaper” with reference to industry circles. According to the experts, the sum is calculated based on the damage to the cargo and the ship itself.
As the newspaper reports, the damage to the cargo is estimated at around 190 to 200 million euros. You can expect an average of 50,000 euros per new car, but it is said to be a little more for the loaded luxury cars from Rolls-Royce. In addition, there is the ship itself. Depending on its condition, a sum of 40 to 100 million euros can be calculated for this. According to the report, the ship was insured for $50 million in Japan. For the insurers, however, it is crucial whether the fire caused a total loss. Experts should now determine that.
A fire broke out on the “Fremantle Highway” off the Dutch North Sea coast at the end of July. One crew member was killed and the remaining 22 were rescued. The car freighter burned for days. Just last week, the ship was towed to a safe haven in Eemshaven, the Netherlands. The flames are now out. However, the extinguishing work was difficult, the ship threatened to break up because of the extinguishing water. There was concern about a major natural disaster in the Wadden Sea.
According to the salvors, the ship had around 3,800 new cars on board, including almost 500 electric cars. According to reports, the BMW group is one of the main victims of the accident, with a low four-digit number, i.e. more than 1000, it should be about models of the group. A small number of Mercedes and Volkswagen vehicles were also on board. Not all cars were completely destroyed in the fire, the salvage company said.
Nevertheless, the SZ continues to write that it is common for cars to be scrapped that did not come into direct contact with the fire. Because smoke and flames would have had at least an indirect impact on the vehicles. No manufacturer can sell them without providing information about the connection to the fire on the car freighter.
What is decisive for the insurers is what caused the fire. If, according to the SZ, it turns out that a single vehicle or even a battery was the cause of the fire, the manufacturer of this car would have to be liable. As a rule, they would have taken out product liability insurance for this, which would then have to bear the overall damage.