Sunday, October 7, 2018

The Big Money Ocean Salvage Business

Following up on last month's "In Which FT Alphaville Takes On Sailing Yachts, Admiralty (Maritime) Law, and Dinghy Davits", one of the best long-form magazines out there, this time on salvage.

From Epic Magazine

Deep Sea Cowboys
LATITUDE 48° 14 N. LONGITUDE 174° 26 W.
Almost midnight on the North Pacific, about 230 miles south of Alaska's Aleutian Islands. A heavy fog blankets the sea. There's nothing but the wind spinning eddies through the mist.

Out of the darkness, a rumble grows. The water begins to vibrate. Suddenly, the prow of a massive ship splits the fog. Its steel hull rises seven stories above the water and stretches two football fields back into the night. A 15,683-horsepower engine roars through the holds, pushing 55,328 tons of steel. Crisp white capital letters — COUGAR ACE — spell the ship's name above the ocean froth. A deep-sea car transport, its 14 decks are packed with 4,703 new Mazdas bound for North America.
“Estimated cargo value: $103 million.
On the bridge and belowdecks, the captain and crew begin the intricate process of releasing water from the ship's ballast tanks in preparation for entry into US territorial waters. They took on the water in Japan to keep the ship steady, but US rules require that it be dumped here to prevent contaminating American marine environments. It's a tricky procedure. To maintain stability and equilibrium, the ballast tanks need to be drained of foreign water and simultaneously refilled with local water. The bridge gives the go-ahead to commence the operation, and a ship engineer uses a hydraulic-powered system to open the starboard tank valves. Water gushes out one side of the ship and pours into the ocean. It's July 23, 2006.

In the crew's quarters below the bridge, Saw "Lucky" Kyin, the ship's 41-year-old Burmese steward, rinses off in the common shower. The ship rolls underneath his feet. He's been at sea for long stretches of the past six years. In his experience, when a ship rolls to one side, it generally rolls right back the other way.

This time it doesn't. Instead, the tilt increases. For some reason, the starboard ballast tanks have failed to refill properly, and the ship has abruptly lost its balance. At the worst possible moment, a large swell hits the Cougar Ace and rolls the ship even farther to port. Objects begin to slide across the deck. They pick up momentum and crash against the port-side walls as the ship dips farther. Wedged naked in the shower stall, Kyin is confronted by an undeniable fact: The Cougar Ace is capsizing.
He lunges for a towel and staggers into the hallway as the ship's windmill-sized propeller spins out of the water. Throughout the ship, the other 22 crew members begin to lose their footing as the decks rear up. There are shouts and screams. Kyin escapes through a door into the damp night air. He's barefoot and dripping wet, and the deck is now a slick metal ramp. In an instant, he's skidding down the slope toward the Pacific. He slams into the railings and his left leg snaps, bone puncturing skin. He's now draped naked and bleeding on the railing, which has dipped to within feet of the frigid ocean. The deck towers 105 feet above him like a giant wave about to break.
Kyin starts to pray
https://hips.hearstapps.com/amv-prod-cad-assets.s3.amazonaws.com/images/media/227950/in-july-2006-the-car-carrier-cougar-ace-foundered-just-south-of-the-aleutian-islands-the-us-coast-guard-and-alaska-air-national-guard-got-the-crew-out-the-4703-mazdas-onboard-had-to-photo-227955-s-986x603.jpg?crop=1xw:1xh;center,center&resize=884:*
 
Jackson Hole Wyoming
4 am. A phone rings.
Rich Habib opens his eyes and blinks in the darkness. He reaches for the phone, disturbing a pair of dogs cuddled around him. He was going to take them to the river for a swim today. Now the sound of his phone means that somewhere, somehow, a ship is going down, and he's going to have to get out of bed and go save it.
 
It always starts like this. Last Christmas Day, an 835-foot container vessel ran aground in Ensenada, Mexico. The phone rang, he hopped on a plane, and was soon on a Jet Ski pounding his way through the Baja surf. The ship had run aground on a beach while loaded with approximately 1,800 containers. He had to rustle up a Sikorsky Skycrane — one of the world's most powerful helicopters — to offload the cargo.

Ship captains spend their careers trying to avoid a collision or grounding like this. But for Habib, nearly every month brings a welcome disaster. While people are shouting "Abandon ship!" Habib is scrambling aboard. He's been at sea since he was 18, and now, at 51, his tanned face, square jaw, and don't-even-try-bullshitting-me stare convey a world-weary air of command. He holds an unlimited master's license, which means he's one of the select few who are qualified to pilot ships of any size, anywhere in the world. He spent his early years captaining hulking vessels that lifted other ships on board and hauled them across oceans. He helped the Navy transport a nuclear refueling facility from California to Hawaii. Now he's the senior salvage master — the guy who runs the show at sea — for Titan Salvage, a highly specialized outfit of men who race around the world saving ships.

They're a motley mix: American, British, Swedish, Panamanian. Each has a specialty — deep-sea diving, computer modeling, underwater welding, big-engine repair. And then there's Habib, the guy who regularly helicopters onto the deck of a sinking ship, greets whatever crew is left, and takes command of the stricken vessel.

Salvage work has long been viewed as a form of legal piracy. The insurers of a disabled ship with valuable cargo will offer from 10 to 70 percent of the value of the ship and its cargo to anyone who can save it. If the salvage effort fails, they don't pay a dime. It's a risky business: As ships have gotten bigger and cargo more valuable, the expertise and resources required to mount a salvage effort have steadily increased. When a job went bad in 2004, Titan ended up with little more than the ship's bell as a souvenir. Around the company's headquarters in Fort Lauderdale, Florida, it's known as the $11.6 million bell.

But the rewards have grown as well. When the Titan team refloated that container ship in Mexico, the company was offered $30 million, and it's holding out for more. That kind of money finances staging grounds in southern Florida, England, and Singapore and pays the salaries of 45 employees who drive Lotuses, BMWs, and muscle cars tricked out with loud aftermarket DynoMax exhaust systems. There's also a wall at Titan headquarters with a row of photos of the men who died on the job. Three have been killed in the past three years. 
Titan's biggest competitors are Dutch firms, which have dominated the business for at least a century due in part to the pumping expertise they developed to keep their low-lying lands dry. But 20 years ago, a couple of yacht brokers in southern Florida — David Parrot and Dick Fairbanks — got fed up dealing with crazy, rich clients and decided that saving sinking ships would be more fun. They didn't really know much about the salvage business but thought that the Dutch companies had come to rely too much on heavy machinery. When a ship was in distress, the Dutch firms invariably wanted to use their impressive fleet of tugs and heavy-lift cranes. Fairbanks envisioned a different kind of salvage company — one with no tugs or cranes of its own. Instead, the new outfit would buy jet-ready containers for pumps and generators, and when a ship called for help the Titan team would charter anything from a Learjet to a 747, fly it to the airport nearest the ship, and then hire a speedboat or a helicopter to get a team aboard. If they needed a tug, they'd rent one....
 
Previously from Epic: