Another consultant issued a report Monday that estimated VW’s loss at more than $155 million.
Of the roughly $438 million total value of goods aboard the Felicity Ace, which went up in flames off the coast of Portugal’s Azores Islands, Russell Group said Monday it estimates there are $401 million worth of cars.
A VW spokesperson declined to comment on the matter Monday.
Mitsui OSK Lines, the operator of Felicity Ace, said on its website that two large tugs with firefighting equipment were expected to arrive Monday morning local time to start spraying water together with an initial salvage team that was on board already to cool down the ship.
No oil leakage has been confirmed and the vessel remains stable, the transport company said.
Russell Group is modeling the total value of vehicles on board, so its loss projections assume all vehicles are lost, according to a spokesman.
The consultant estimates auto companies other than VW may have lost about $246 million worth of vehicles.
Future shipping risks
Anderson’s report also raised questions about future risks of shipping EVs.
“This incident underscores another safety warning about electric vehicles,” the report said. “EVs rely on very large batteries with unusual fire risks.
“The Felicity Ace, built in 2005, undoubtedly carried fire suppression equipment in the cargo hold. Nonetheless, reports from the scene indicate that smoke from the burning vehicles overwhelmed the crew’s ability to suppress the fire, resulting in the ship’s rapid abandonment…
“We do not yet know whether the EV batteries caused the fire, or if they were ignited with the rest of the ship. In either case, the dire situation demonstrates a need to make potentially expensive safety investments to handle a future of extensive EV deliveries.”
Philip Nussel and Bloomberg contributed to this report.
