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The crew have abandoned car-carrier Felicity Ace, owned by MOL, which is ablaze off the Azores, while salvage teams are on their way to the vessel and its cargo of 4,000 Porsche and Volkswagen cars.
All 22 members of the crew are safe and uninjured, according to reports.
Claims consultancy WK Webster said salvage services would be rendered under LOF terms.
It said: “It is not currently clear if [the] shipowner intends to declare General Average as a consequence of this casualty. If it does, General Average security will also be required from all cargo interests prior to the delivery.”
The crew issued a distress call on Wednesday when the vessel was 90 nautical miles south-west of the Azores.
The Ponta Delgada Maritime Search and Rescue Coordination Center will lead search and rescue operations and it is reported that a navy patrol vessel and four merchant ships in the area were directed to assist the vessel.
WK Webster said: “The vessel is currently drifting in an easterly direction. We understand that the vessel is likely to be taken under tow by tugs to the nearest safe waters.”
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