Allianz Global Corporate & Specialty (AGCS) is urging that crucial prevention measures be taken to tackle a growing risk of fires caused by lithium-ion batteries in electric vehicles or other cargo not being stored, handled and transported correctly.

Growing popularity of electric vehicles means many more lithium-ion batteries will be transported by sea in future.

AGCS says of over 240,000 marine claims in the past five years worth €9.2 billion ($13.44 billion), fire/explosion was the most expensive cause of loss, accounting for 18% of the value of all claims and the number two cause of the 54 total losses reported in 2021 last year.

Recent fires on the Felicity Ace and X-Press Pearl both resulted in total losses.

The focus needs to be on prevention as extinguishing battery fires at sea is difficult, AGCS says in a special bulletin.

“All parties involved in the supply chain must understand the hazards involved, the most common causes and the problems associated with transporting ,” Senior Marine Risk Consultant Randall Lund said. “Only through a concerted effort by stakeholders in the supply chain can we hope to reduce the rate of incidents."

Crew should receive adequate training and access to firefighting equipment, early detection systems be improved, and hazard control and emergency plans developed.

AGCS details four main hazards: fire as the batteries contain electrolyte which is an ignitable liquid, explosion from the release of ignitable gases in a confined space, thermal runaway – a rapid self-heating fire that can cause an explosion, and the toxic gases that these hazards can produce.

Batteries can also aggravate other causes of fire at sea, and battery fires can reignite days or even weeks after being extinguished.

"A thermal runaway event can be a significant possibility unless immediate action is taken by the crew, such as suppressing a fire with copious amounts of water over a long period of time. However, this can be extremely challenging due to factors such as early detection being difficult, a shortage of crew members on board, and if the vessel’s firefighting capabilities are inadequate,” Global Head of Marine Risk Consulting Rahul Khanna said.

Early detection is critical, AGCS says, including watchkeeping rounds and use of thermal scanners, gas detectors, heat and smoke detectors, and CCTV cameras.

In March, the US Coast Guard issued a safety alert about the risk posed by Li-ion batteries following two container fires. Two years ago a fire on Höegh Xiamen in Florida was attributed to a failure to properly disconnect and secure vehicle batteries. Months earlier, a fire on the container ship Cosco Pacific was attributed to the combustion of lithium-ion battery cargo not properly declared.