Lithium-ion (Li-ion) batteries are increasingly impacting shipping safety, as is evident from several recent fires on vessels such as roll-on-roll-off (ro-ro) car carriers and container ships.
Given the many difficulties involved in suppressing such incidents, particularly at sea, focusing on loss prevention measures is crucial, whether batteries are transported within electric vehicles (EVs) or as standalone cargo, according to a new report released by marine insurer, Allianz Global Corporate & Specialty (AGCS).
“Shipping losses may have more than halved over the past decade, but fires on board vessels remain among the biggest safety issues for the industry. The potential dangers that the transportation of lithium-ion batteries pose if they are not stored or handled correctly only add to these concerns, and we have already seen a number of incidents,” Captain Rahul Khanna, global head of marine risk consulting at AGCS said.
“Companies should do all that they possibly can to implement, develop and follow robust loss prevention measures…the growing popularity of electric vehicles means many more vehicles with lithium-ion batteries will be transported by sea in future.”
The latest report, Lithium-ion batteries: Fire risks and loss prevention measures in shipping, highlights the firm’s analysis of more than 240 000 marine insurance industry claims with a value of €9.2 billion, over the past five years. The analysis shows that fire/explosion from all causes is the most expensive cause of loss, accounting for 18% of the value of all claims.
The report highlights four main hazards regarding batteries: fire (Li-ion batteries contain electrolyte, an ignitable liquid); explosion (resulting from the release of ignitable vapour/gases in a confined space); thermal runaway (a rapid self-heating fire that can cause an explosion); and toxic gases that these hazards can produce. The most common causes of these hazards are substandard manufacturing of battery cells/devices; over-charging of battery cells; and over-temperature by short circuiting and damaged battery cells or devices. Damage can result from poor packing and handling or cargo shift in rough seas if it has not been adequately secured.
“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,” Khanna said.
“In most shipboard incidents 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.”
Recent incidents in which a battery fire was cited as a possible cause or contributing factor include the March fire and subsequent sinking of the ro-ro carrier Felicity Ace. In the same month, the US Coast Guard issued a safety alert about the risk posed by Li-ion batteries following two separate container fires. In June 2020, a fire on the car carrier Hoëgh Xiamen in Florida was attributed to a failure to properly disconnect and secure vehicle batteries. In January 2020, a fire on the container ship Cosco Pacific was attributed to the combustion of a Li-ion battery cargo which was not properly declared.
In the report, AGCS experts highlight a number of recommendations for loss prevention, focusing on two areas in particular: storage and in transit. Among these are the importance of ensuring staff are trained to follow correct packing and handling procedures and that seafarers have had Li-ion battery firefighting training. It is also important to check that the battery’s state of charge (SOC) is at the optimal level for transportation, that EVs with low ground clearance are labelled, and that all are properly secured to prevent shifting during transportation. In transit, anything that can aid early detection is critical, including watch-keeping/fire rounds, and utilising thermal scanners, gas detectors, heat/smoke detectors, and CCTV cameras.
“If the maritime industry is to improve its incident record related to the transportation of lithium-ion batteries, all parties involved in the supply chain must understand the hazards involved, the most common causes, and the problems associated with transporting in commerce,” Captain Randall Lund, senior marine risk consultant at AGCS said.
Lund co-authored the report with AGCS marine risk consultants Miguel Herrera and Justin Kersey.
“Regulations and guidance are specific in addressing these batteries to help prevent most incidents, but these can only be effective if they are communicated and enforced. Only through a concerted effort by stakeholders in the supply chain can we hope to reduce the rate of incidents,” he said.
The number of fires - from all causes - on board large vessels has increased significantly in recent years. Across all vessel types, fire/explosion was the second top cause of the 54 total losses reported in 2021, second only to foundered (12). Over the past decade fire/explosion ranks as the third top cause of loss overall, accounting for 120 out of 892 reported total losses, behind foundered (465) and wrecked/stranded (164).
