IN THE KNOW
HOW TO MANAGE LITHIUM BATTERY MARINE CARGO FIRE RISKS CONFIDENTLY
Electric vehicle sales are booming. Hundreds of thousands of EVs are being exported and imported, carried by sea from continent to continent. The world's supply chains are evolving to handle the risk of transporting them, a hot topic fuelled by a string of fires. In this article we explore the ways shippers and logistics companies are protecting cargoes against today's fast-evolving lithium battery marine cargo fire risks.
EXPLORING LITHIUM BATTERY MARINE CARGO INSURANCE FIRE RISKS
Because Li-ion batteries contain electrolyte, they can easily ignite. Damaged, short circuited, badly made, badly packed, over-charged or overheated Li-ion batteries can cause fires. They make existing fires on board worse and once the fires have started they're notoriously hard to put out, re-igniting again without warning days or even weeks later. Thermal runaway, where a fast self-heating fire causes an explosion, is an issue, as are the toxic gases give off by lithium battery fires and explosions. Last but not least, there's a serious environmental impact.
Electric vehicles at sea highlight the rising lithium battery marine cargo fire risks — prevention and preparedness are critical.
All this means fire detection and firefighting at sea are more important than ever. It's no surprise maritime experts are talking about new ships specially designed to carry large numbers of Li-ion batteries and EVs safely, and insurance companies are busy analysing the risks.
RECENT LITHIUM BATTERY MARINE CARGO FIRE INCIDENTS AT SEA
In a world where there are half as many shipping losses as ten years ago, the number of fires involving Li-ion batteries stands out.
In March 2022 the ro-ro carrier Felicity Ace caught fire and sank with around 4000 EVs on board. Nobody knows the exact cause but Li-ion batteries probably made the fire worse. It wasn't an isolated incident. Two years earlier it took eight days to put out a fire on the Höegh Xiamen car carrier, off the coast of Florida, because someone didn't disconnect and secure the vehicle batteries in the right way.
A Cosco Pacific container ship came to grief in early 2020 because the Li-ion battery cargo wasn't declared properly and, in 2023, the MV Fremantle Highway Pure Car and Truck Carrier (PCTC) caught fire off the Netherlands coast with almost 3,800 EVs on board. It burned for days. The Dutch Coast Guard and investigators said an electric vehicle with a lithium-ion battery was the source. The MV Istra Ace and MV Genius Star XI in late 2023, and MV Kaimana Hila in January 2024, also involved lithium-ion batteries.
THE COST OF MARITIME LITHIUM-ION BATTERY FIRES
Between 2012 and 2021 fire was the third biggest cause of losses at sea, 120 out of 892 reported losses. In 2021 it was the third highest cause of shipping incidents globally. When Allianz Global Corporate & Specialty (AGCS) analysed more than 240,000 marine insurance claims lodged between January 1 2017 and December 31 2021, the total cost was an eye-watering €9.2bn or RM47.84 billion. a shocking 18% of the value of all claims. It's clear loss prevention is critical wherever you are in the supply chain, and the challenges these batteries present are already re-shaping shipping safety.
Container fires caused by lithium batteries are among the costliest marine cargo incidents — €9.2bn (RM47.8bn) in claims between 2017 and 2021.
WELL TRAINED PEOPLE
Marine insurer AGCS has made a list of important recommendations, including staff training, critical because everyone has to know exactly how to handle and pack the batteries and the EVs they're fitted into. Crew on board carriers need specific training to fight Li-ion battery fires, and ships must be fitted with the right firefighting equipment.
DETAILED PRE-PLANNING
Large car batteries catch fire more easily than small batteries in phones and gadgets. AGCS recommends an Emergency Response Plan so everyone knows what to do if something goes wrong. A Hazard Control Plan will help people receive, store, send and supervise packaged Li-ion batteries safely. If there's a local fire department or on-site fire brigade available, they can provide expert advice about specific procedures. And, of course, it's important to remove damaged and defective Li-ion batteries, not leave them to catch fire.
TAKING MANUFACTURER’S ADVICE
Manufacturers provide essential advice about battery storage and handling, things like protecting the battery poles so they can't short circuit, keeping them out of direct sunlight and away from heat, and making sure they're at least 3m away from anything else combustible when there isn't a fire extinguisher close by.
Safe lithium battery marine cargo transport starts with reputable manufacturers and strict quality standards
Stacking Li-ion batteries on the floor is an expert task, with limits to the height of the stack, their footprint and the distance between them. Rack storage is a bad idea that should be banned unless there's a good sprinkler system. With strong horizontal and vertical metal barriers between the storage bays.
It should be safe to transport batteries with a 30% - 50% charge, but never fully charged. The actual charge level in each case depends on the manufacturer's instructions and how long the batteries will be at sea, something to carefully check.
TAILORED CHECKS FOR EVs
Ship crews must carry out tailored checks on EV batteries — from secure stowage to system inspections — to reduce lithium battery marine cargo fire risks.
If the cargo is vehicles, every EV should display the type of battery on the windscreen. If they have a low ground profile it might have an impact on the loading and discharging. Someone who knows what's what will need to make sure each car's battery system isn't damaged, every battery or vehicle has to be properly secured, and there must be zero risk of a battery charging at sea. All this means ships will have to fit early fire detection tech, put humans on watch, fit gas, heat and smoke detectors, and set up CCTV. It's also wise to install a CO2 gas detector plus shock, impact and vibration sensors to pin down potential issues with car batteries.
THE INSURANCE ANGLE
The story of lithium battery marine cargo fire risks is still evolving, and no single player can solve it alone. Insurers, regulators and shipping companies are all trying to understand the hazards better, enforce standards, and prevent the next big incident.
That’s where we step in. At TGC Asia, we don’t just provide cover — we work alongside shippers, logistics operators, and carriers to interpret new regulations, align with best practices, and prepare for the unexpected. Our role is to help you anticipate these risks before they become losses, and to protect your business when things go wrong.
Our Journey, Your Trust isn’t just a tagline. It’s our promise to keep your cargo — and your reputation — secure, even as the risks evolve.
Sources
- https://commercial.allianz.com/news-and-insights/reports/lithium-ion-batteries.html
- https://chat.deepseek.com/ (list of reported Li-ion battery fires at sea since 2021)