On January 2, 1995, at 1035 Alaska standard time, a float equipped Cessna model 208 (Caravan) airplane, N242SS, operated by Taquan Air Service of Ketchikan, Alaska as scheduled flight No. 2, sustained substantial damage when it collided with a partially submerged log during a high speed water taxi from landing at Craig, Alaska. The airline transport certificated pilot-in-command, and the seven revenue passengers aboard were not injured. The 14 CFR Part 135 flight departed Ketchikan at 0955, and the destination was Craig. Visual meteorological conditions prevailed, and a VFR flight plan was on file. The pilot reported that prior to landing he surveyed the area and thought it safe to perform a landing. He wrote in his report to the NTSB that the bright sunlight and approximately one foot of convection fog covering the water surface were restrictions to his visibility. Just after coming off a step taxi, he said the right float struck a log, which damaged the right float, and caused the airplane to veer to the right. The resultant side loads on the left float caused it to collapse, and the left wing was damaged when it struck the water.