CompaniesAllianz SEFollowLOS ANGELES/AMSTERDAM, July 27 (Reuters) – Electric vehicles are crisscrossing the globe to reach their eager buyers, but the battery technology involved in the zero-emission automobiles is exposing under-prepared maritime shippers to the risk of hard-to-control fires, industry, insurance, and emergency response officials said.That risk has been put under the spotlight by the burning car carrier drifting off the Dutch coast. The Dutch coastguard said the fire’s cause was unknown, but Dutch broadcaster RTL released a recording in which an emergency responder is heard saying “the fire started in the battery of an electric car.”While all logistics companies deal with the risk of EV lithium-ion batteries burning with twice the energy of a normal fire, the maritime industry hasn’t kept up with the developing technology and how it creates greater risk, maritime officials and insurers said.There were 209 ship fires reported during 2022, the highest number in a decade and 17% more than in 2021, according to a report from insurer Allianz Global Corporate & Specialty (AGCS) (ALVG.DE). Of that total, 13 occurred on car carriers, but how many involved EVs was not available.The European Maritime Safety Agency said in a March report the main cargo types identified as responsible for “a large share of cargo fire accidents included … lithium-ion batteries.”There were 3,783 new cars on board, including 498 electric battery vehicles, a spokesperson of ship chartering company “K” Line said on Friday. Initial reports had put the number of electric vehicles at just 25.Japan’s Shoei Kisen, which owns the ship, said it was working with authorities to get control of the fire.The cause of the fire, while still officially undetermined, has raised questions about “what blind spots there are when transporting electric cars powered by batteries – which when they catch fire can’t be extinguished with water, or even by oxygen deprivation,” said Nathan Habers, spokesperson for the Royal Association of Netherlands Shipowners (KVNR).”The first question that comes to mind is: Does the current code stack up against the risk profile of this type of goods?” he added.One hazard in lithium-ion batteries is “thermal runaway,” a rapid and unstoppable increase in temperature that leads to fires in EVs that are hard to extinguish and can spontaneously reignite.Fire extinguishing systems on the massive ships that haul cars weren’t designed for those hotter fires, and shipping companies and regulators are scrambling to catch up, said Douglas Dillon, executive director of the Tri-state Maritime Safety Association that covers Delaware, Pennsylvania, and New Jersey.Recent fire-related losses are resulting in increased insurance costs for automakers shipping cargo and costs are likely to increase for vessel owners as well, said John Frazee, a managing director at insurance broker Marsh. As ship owners seek to limit losses by legally pursuing automakers whose…
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