Addressing the Growing Concern of Fires on Container Ships and Car Carriers

By Lori Ann LaRocco – Global insurer Allianz Commercial warns the Morning Midas fire is the latest example of an underlying safety problem facing seafarers.

Captain Rahul Khanna, Global Head of Marine Risk Consulting at Allianz Commercial, expressed concerns about the increasing number of fire incidents on container ships and car carriers, highlighting it as a major issue for insurers.

According to Captain Khanna, “While regulatory changes are in progress, we cannot say this is a risk that is under control. This is still very much a live issue and one that will only get worse with electrification.”

Fire has become the fourth top cause of shipping incidents in the last decade, with the number of fire incidents on vessels reaching a decade high of 250, up by 20% year-on-year. Approximately 30% of these incidents occurred on container, cargo, or roll-on roll-off vessels (Ro-Ros).

Khanna emphasized the need to address fire detection and fighting capabilities on vessels, especially with the increasing demand for Battery Energy Storage Systems (BESS) and the transportation of these products over sea and land, which adds to the risk.

Allianz Commercial’s report highlighted the risks associated with BESS systems, noting that while they are more stable, they still pose a significant threat in case of fire due to their ability to store large amounts of energy.

Captain Randy Lund, Senior Marine Risk Consultant at Allianz Commercial, stated, “Insurers are aware of the risks of lithium-ion batteries and do not underwrite these risks lightly; we have developed risk controls and can work with clients to help them improve the risks.”

The recent fire on the Morning Midas on June 3rd, where 22 seafarers had to escape by lifeboat in the North Pacific, further underscores the dangers faced by seafarers. The vessel was reportedly carrying around 3,000 vehicles, including some 800 electric and hybrid vehicles.

Captain Lund warned that the incident highlights the risks associated with modern car carriers that can transport up to 10,000 electric vehicles, posing a significant threat in case of emergencies.