Although shipping losses have more than halved over the past decade [1], fires on board vessels remain among the biggest safety issues for the maritime industry. AGCS analysis of over 240,000 marine insurance industry claims between January 1, 2017, and December 31, 2021, worth approximately €9.2bn in value, shows that these are the most expensive cause of loss, accounting for 18% of the value of all claims.
As recent events have demonstrated, roll-on roll-off (ro-ro) car carriers [2], the largest of which can hold as many as 8,000 vehicles, can be susceptible to fire risks (see box), while there have also been a number of blazes on container ships [3].
In March 2022, the fire and subsequent sinking of the ro-ro carrier Felicity Ace [4] with the loss of some 4,000 vehicles, put the risks associated with transporting electric vehicles (EVs), and the lithium-ion (Li-ion) batteries that help power them, firmly in the spotlight. The exact cause of the fire may never be known, but it is thought the presence of Li-ion batteries on board aggravated the fire conditions. Given the growing popularity of EVs means many more vehicles with Li-ion batteries will be transported by sea in future – together with the fact that this was not an isolated incident (see box) – it is crucial that the maritime industry focuses on loss prevention best practice.
“AGCS has long warned [5] about the potential dangers that lithium-ion batteries can pose for the shipping and wider logistics industries, whether they are being transported inside electric vehicles or as standalone cargo, if they are not handled, stored or transported correctly, with fire being a significant hazard,” explains Captain Rahul Khanna, Global Head of Marine Risk Consulting, AGCS.
“Batteries are not only a potential cause of fire if damaged, overcharged or subjected to high temperatures, they can also aggravate other causes of fire at sea and are difficult to extinguish as they have the potential to reignite days or even weeks later,” says Khanna. “Safe carriage has become an emerging risk concern for the shipping community, raising questions about the adequacy of fire detection and firefighting capabilities on board vessels, cargo loading procedures and even whether changes in vessel design may be necessary, given specialist equipment is required to extinguish any blazes and salvage operations at sea can be challenging.”