Vehicles damaged, destroyed in vessel fire.

As many as 175 vehicles belonging to Department of Defense service members were destroyed or damaged in a mid-ocean ship fire June 9.

The vehicles were aboard the Tellus, an American Roll-on/Roll-off Carriers vessel, which docked June 14 in Bremerhaven, Germany.

The fire destroyed 51 cars, said Bill Antonelli, Vice President, American Auto Logistics, Inc., MTMC's prime contractor for moving privately owned vehicles.

Owners of the vehicles include 36 Army, 13 Air Force and two Navy service members. As of July 5, financial settlements have been reached with 28 of the owners.

Another 124 vehicles have varying amounts of damage, he said. Some of the vehicles have light damage, typically caused by smoke or ash.

The cause of the fire has not been determined. Currently, investigators are working on the assumption that the fire began in a vehicle's electrical system, said Antonelli.

"This could involve keys remaining in the ignition, faulty installation of electrical or sound equipment, faulty wiring insulation, or similar conditions," said Antonelli.

Automatic fire extinguishers put out the flames.

"Prompt extinguishing of the fire substantially limited the damage to cargo and vessel, said Antonelli.

Unaffected were 168 other privately owned vehicles and other MTMC cargo such as M-1 tanks. The 168 vehicles have been inspected, found to be damage-free, and have been discharged for release to their owners.

"We're in the process right now of identifying the owners of the damaged vehicles," said Antonelli.

The heat and intensity of the fire destroyed many Vehicle Identification Numbers, he added.

The fire was reported when the Tellus was three days' sailing distance from the United States. The fire did not affect the seaworthy condition of the ship. The vessel was rerouted from its original destination of Radicatel, France, to Bremerhaven.

An owner notification and compensation process is under way, said Antonelli. Each vehicle is now being inspected by Dekra, an approved agent of the German government, to determine damage.

"For each unaffected vehicle," said Antonelli, "Dekra will issue America Auto Logistics a certificate stating it is safe for the road."

The following compensation will be available for owners of lost or damaged vehicles, said Antonelli:

* Claims will be settled using the Kelly Blue Book retail values.

For members who possess clear titles to totaled or destroyed vehicles, American Auto Logistics will issue a settlement check upon receipt of each signed transfer of original title and settlement release.

For members who have liens on their vehicles, American Auto Logistics will issue settlement checks upon receipt of member-signed releases and lien-holder guarantees confirming release. In the case where liens on cars exceed the Kelly Blue Book value, American Auto Logistics will seek settlement with both the member and lien holder.

* The contractual $20,000 limit of liability will be waived for this specific incident.

* American Auto Logistics will provide a rental car for up to 30 days from the date of settlement, or required delivery date, whichever is sooner.

* Members not requiring a rental car will be offered $1,000 in lieu of a rental car at settlement date.

* Classic and antique vehicles will be settled at their appropriate market value.

* The ocean carrier, American Roll-On Roll-Off Carriers, Inc., along with American Auto Logistics, will provide free transportation of a second vehicle, replacing the vehicle that was destroyed or determined to be a constructive total loss, from the point of origin to the destination vehicle processing center. Affected vehicle owners should contact the origin vehicle processing center or Irene Markoglu, at Logistics Coordinators Limited, [phone], e-mail [e-mail]. This option will expire Oct. 1.

* American Auto Logistics has arranged for reduced pricing with Overseas Military Sales for members to purchase replacement vehicles for those units that have been destroyed or determined to be a constructive loss.

Safety- and health-related damage

Before delivery to each member, American Auto Logistics will repair, replace or clean any damaged or soiled parts or components affecting the safety of the vehicle or health of the member.

* Rental cars will be provided for members who do not have repairs completed by the required delivery date.

* Upon completion of repairs for cars that have exceeded the required delivery date, each member will have up to three days to return the rental car and pick up the vehicle at the destination vehicle processing center.

Non-safety-related damages

For all other damages, and to expedite the claims settlement process, it is recommended that members file directly with American Auto Logistics' agent, Logistics Coordinators Limited, Montvale, N.J., or use the expedited claims option available at the destination vehicle processing center.

Additional information is available from: Rich Holland Moritz, 011 49 6107 9440; facsimile, 011 49 6107 8691; toll-free within Germany, 00800 87267227; email, [e-mail].

Overseas customers: Evelyn Dullaghan, Transcar, 011 49 6107 944116; facsimile, 011 49 6107 8691; toll-free within Germany, 00800 87267227; e-mail, [e-mail].

Continental United States customers: Greg Wellstead, [phone]; fax, [phone]; e-mail, [e-mail].