Considering I have never gotten Loot Containers at sea that aren't Ship Materials or Rare Ship Materials, I really don't know the answer to that. However, in the past, I've gotten lots of Loot Pouches, and other containers, and even though they showed off screen, I still got the items within.

OMG now there's rank 4 upgrades that let you have partial fury and firebrand broads! and even more speed, turning and armor boosts! (every single one has a cargo decrease)

I have not seen anyone with rank 4 upgrades yet so is i am wondering is this a rumor or is there someone with rank 4 upgrade...seems hard to believe.

http://i1236.photobucket.com/albums/...nesUpgrade.png
http://i1236.photobucket.com/albums/...esUpgrade2.png
http://i1236.photobucket.com/albums/...ebrandShot.png
There's your proof.

Anyway, after a lot of looting,
http://i1236.photobucket.com/albums/...stPlunder2.pnghttp://i1236.photobucket.com/albums/...stPlunder3.png

I've finally gotten enough Iron to upgrade my War Sloop's hull!
http://i1236.photobucket.com/albums/...Reinforced.png

And for all you Streamlined crazies out there, here is Seagull's War Brig
http://i1236.photobucket.com/albums/...treamlined.png

I have a War Brig with streamline I, a sloop with Streamline II. Have not seen anything other then round come out on a broadside. If it dose happen I will screen it.

As to a level 4 upgrade, dunno if there is one. Let me get something to level 3 to find out.

There is a Rank IV upgrade. Once you upgrade to Streamlined/Reinforced/Cargo III, you can then upgrade to either Skulls & Bones, Fortune Hunter or Firestorm. Skulls & Bones = 15% chance of firing a Fury broadside, Fortune Hunter = 20% chance of firing a Firebrand broadside, and Firestorm = 15% chance of firing a Firebrand broadside. Screenshots of the Skulls & Bones upgrade can be found in CaribbeanThunder's post, above your's.

Wow, this is going to be awesome!

Two questions though..

Did they remove the normal and royal chests? Because from what I've seen you can only get loot containers and materials.

Also, do you have to upgrade your ship in order to change the hull's color?

They did not remove regular Cargo. Loot Containers now remove regular Cargo like it had orignally been meant to. When Loot Containers first arrived, it originally did this, but a later update broke it.

Yes, you need to get either Cargo I, Reinforced I or Streamlined I. Each of these has a different Hull type.

Reinforced:
http://i1236.photobucket.com/albums/...Reinforced.png

Cargo:
http://i1236.photobucket.com/albums/...RedDervish.png

Streamlined:
http://i1236.photobucket.com/albums/...treamlined.png

1. No, normal and Royal chests are still there. It's just when you get Ship Materials/Rare Ship Materials, they replace normal/royal chests. More valuable plunder drops replace the less valuable ones -- this happens on Live too.

2. No, you don't; nor do you need to upgrade your ship to buy emblems.

Well, had an awesome plunder run just now!

http://i1236.photobucket.com/albums/...stPlunder4.png

Loot only replaces Cargo Crates, Treasure Chests, Royal Chests and Loot Pouches. It will not replace Loot Chests, Ship Materials, Loot Skull Chests or Rare Ship Materials.

I was aboard! We did it twice!

Well met Sir!

So ifI understand correctly:Rare Ship/Ship Materials>Skull/Loot Chests&Pouches>Royal/Treasure Chests and Crates?

It seems like the best buy is the Cargo in my opinion, get a armor and cargo boost is great, but costs 60,000. Thats really cool of the broadside upgrades!

Well, if that means that Rare/Ship Materials, Loot Chests and Loot Skull Chests can replace anything else except for each other, then yep, that's right!

Well then, I finally got my War Brig Streamlined I AND Speed I!
http://i1236.photobucket.com/albums/...reamlined2.png

Now all of my ships are upgraded!