Allianz Highlights Unmanaged Fire Hazards of Electric Vehicles at Sea

According to a recent report by Allianz Commercial, the Morning Midas fire highlights ongoing safety challenges for those working at sea. Captain Rahul Khanna,who leads Marine Risk Consulting at Allianz,pointed out that fires on container ships and car carriers are significant concerns for insurers. He emphasized that while regulatory measures are being developed, the risk remains unmanageable and is likely to escalate with the rise of electrification in shipping.

fires rank as the fourth most common cause of maritime incidents over the past ten years,with Allianz noting a staggering 20% increase in fire-related events last year alone—reaching an all-time high of 250 incidents across various vessel types. Notably, around 30% of these fires occurred on container ships or roll-on/roll-off (Ro-Ro) vessels.

Captain Khanna stressed the urgent need to enhance fire detection and suppression systems aboard ships. the growing use of battery energy storage systems (BESS) adds another layer of risk during transport over both land and sea.While BESS technology has improved stability, it still poses significant hazards if a fire occurs due to its capacity to store large amounts of energy.“Insurers recognize the dangers associated with lithium-ion batteries,” said Captain Randy Lund, Senior Marine Risk Consultant at Allianz Commercial. “We approach underwriting these risks cautiously and collaborate with clients to mitigate potential threats.”

The Morning Midas incident took place on June 3rd in the North Pacific; fortunately, all 22 crew members were able to evacuate via lifeboat. The ship was reportedly transporting about 3,000 vehicles—around 800 of which were electric or hybrid models.

Captain Lund further highlighted that this incident underscores serious risks for seafarers as many modern vessels are opting for smaller crews—a decision that can heighten danger levels during emergencies. “Newer car carriers can hold up to 10,000 electric vehicles,” he noted. “If something goes awry onboard such a vessel, it poses not only financial risks but also environmental threats and jeopardizes crew safety.”

as shipping evolves with new technologies like electric vehicles becoming more prevalent on board vessels worldwide, addressing these safety issues is crucial for protecting both seafarers and our oceans from potential disasters.