Introduction to EV Transport Risks
As electric vehicles (EVs) become more widespread, the logistics of moving them safely have come under increasing scrutiny. Transporting cars by ship is already a complex process, but when lithium-ion batteries are involved, the risks increase dramatically. Marine safety experts are now closely examining how these cargoes are handled, especially after several high-profile incidents of fires on board vehicle carriers.
The maritime industry has long dealt with hazardous cargo, but EVs present unique challenges because of the way lithium-ion batteries behave when compromised. Unlike traditional vehicle fires, which can usually be contained with standard firefighting equipment, battery fires are harder to extinguish, prone to reignition, and release dangerous gases. This makes them a serious safety threat in the confined environment of a cargo ship.
In the past two months, multiple incidents have highlighted these dangers and brought them to the forefront of marine safety discussions. Insurers, regulators, and shipping companies are all reassessing how to minimize the risks associated with transporting thousands of EVs at once. The issue is no longer theoretical; it is a pressing reality that impacts global trade, seafarer safety, and environmental protection.
Understanding Lithium-Ion Battery Fires
The core of the problem lies in the design of lithium-ion batteries, which power nearly all modern electric cars. These batteries can experience a phenomenon known as “thermal runaway,” in which one cell overheats and triggers a chain reaction across neighboring cells. The process generates intense heat, flammable gases, and the potential for violent explosions. Once a fire starts, it can spread quickly, overwhelming traditional suppression systems.
Unlike conventional fires, lithium-ion battery fires cannot be reliably extinguished using water or foam alone. They require specialized strategies such as cooling to prevent spread, containment to isolate affected vehicles, and constant monitoring to ensure the fire does not reignite. The ocean setting complicates matters further, as crews are limited in resources and face the challenge of battling a fire while also maintaining vessel stability.
This risk is magnified on ships carrying thousands of vehicles packed closely together. Even if only a small percentage of those vehicles are electric, a single malfunctioning battery can set off a chain reaction with catastrophic consequences. The confined nature of car decks, combined with the scale of modern vehicle carriers, means the consequences of a battery fire can escalate rapidly and with limited options for containment.
Recent Incidents at Sea
Recent months have seen multiple incidents that underline the risks of transporting EVs by sea. In June 2025, a cargo vessel carrying more than 3,000 cars, including nearly 800 EVs, caught fire in the Pacific Ocean. The crew was forced to abandon ship, and the incident raised urgent questions about how prepared the industry is to handle such emergencies. The aftermath included significant financial loss, environmental concerns, and renewed public attention on marine safety.
Another major shipping company, Matson, has since announced it would pause shipments of EVs until it can reassess fire safety procedures. This decision was not taken lightly, as it disrupts vehicle supply chains and impacts manufacturers relying on overseas transport. Still, the company cited safety as the overriding priority, acknowledging that a single fire could endanger lives and cargo worth hundreds of millions of dollars.
These incidents are not isolated. Past disasters, such as the *Felicity Ace* fire in 2022 and the *Fremantle Highway* fire in 2023, both of which involved EVs, provide sobering reminders of the potential scale of loss. In each case, the inability to control lithium-ion battery fires contributed to the destruction of ships and cargo, and in some cases, loss of life. The repetition of such events highlights the urgent need for systemic solutions.
Impact on the Shipping Industry
The shipping industry now faces both operational and financial consequences. On the operational side, companies must rethink how vehicles are loaded, spaced, and monitored during transport. Some carriers are exploring new loading protocols that separate EVs from conventional cars, while others are experimenting with battery state-of-charge requirements to reduce risk. Each change introduces costs and logistical challenges that ripple through the supply chain.
Financially, the risks have already driven up insurance premiums for vessels carrying EVs. Underwriters are increasingly cautious, requiring more stringent safety measures before offering coverage. For shipping companies, this raises the cost of doing business, which can in turn be passed along to consumers in the form of higher vehicle prices. The perception of risk also affects partnerships, with some logistics providers opting to avoid EV cargo altogether.
At the same time, the industry recognizes that EVs are not going away. As the global transition to electric mobility accelerates, the number of EVs requiring transport will only increase. This creates a dilemma: shipping companies cannot simply avoid the risk, but must instead find ways to manage it. The stakes are high, as both economic competitiveness and safety depend on finding workable solutions quickly.
Concerns of Insurers and Regulators
Insurers have been among the most vocal stakeholders in raising alarms about EV transport risks. With billions of dollars at stake, they have pushed for stricter oversight and better safety protocols. Some have even suggested excluding EV cargo from policies unless carriers can demonstrate compliance with enhanced safety standards. This pressure adds urgency for shipping companies to modernize their practices.
Regulators and classification societies are also responding. Updated codes are being drafted to specifically address lithium-ion battery transport. These include requirements for enhanced fire suppression systems, better ventilation, and crew training tailored to battery fire scenarios. The changes reflect a recognition that existing frameworks are inadequate for the scale of today’s EV shipments.
International collaboration is essential, since vehicle carriers often travel across multiple jurisdictions. Without consistent global standards, enforcement can be uneven, leaving gaps in safety. Regulators are therefore working with insurers, manufacturers, and maritime organizations to build a common set of rules that can guide the industry forward. The challenge is to balance safety with the practicalities of global trade.
Technological and Procedural Responses
Technology is emerging as a key part of the solution. Some companies are investing in thermal monitoring systems that track battery temperatures in real time. Others are developing containment units designed to isolate EVs in case of fire. Suppression agents specific to lithium-ion batteries are also being researched, as conventional systems have proven insufficient. These innovations, while promising, require widespread adoption to make a real difference.
Procedurally, shipping companies are reviewing loading patterns, limiting the number of EVs per deck, and instituting stricter pre-transport inspections. Ensuring that vehicles are shipped at reduced battery charge levels has been shown to decrease fire risk. Crew training is also being expanded, with specialized drills that prepare seafarers for battery fire emergencies. The goal is to make prevention and rapid response the standard rather than the exception.
These adaptations come at a cost, but they may ultimately be less expensive than the losses associated with a major fire. Companies that adopt best practices early could also gain a competitive advantage, as insurers and customers look for partners who prioritize safety. In this way, technological and procedural responses are not just about compliance, but about reshaping the industry’s reputation for safety and reliability.
Implications for Ports and Coastal Communities
The risks of EV transport extend beyond the ships themselves. Ports that receive these vessels must be prepared for potential fires or emergencies during loading and unloading. This requires upgraded firefighting infrastructure, emergency response plans, and training for dockside personnel. The responsibility is shared between ship operators and port authorities, and coordination is critical for safety.
Coastal communities also bear potential environmental risks. A fire at sea or near port can release toxic chemicals into the water, threatening marine life and local economies dependent on fishing and tourism. The damage from a single incident could take years to fully recover from, adding another layer of urgency to the call for stronger safety measures. Community stakeholders are increasingly advocating for better safeguards to protect their livelihoods.
From an economic perspective, ports that can demonstrate robust safety protocols may attract more business. Conversely, those perceived as underprepared may see shipping companies take their business elsewhere. This dynamic creates a competitive incentive for ports to invest in infrastructure and training, aligning safety with long-term growth.
Conclusion and Future Outlook
The transportation of electric vehicles by sea has become a flashpoint for marine safety. While EVs represent the future of mobility, their lithium-ion batteries introduce risks that the shipping industry is still learning how to manage. Recent incidents underscore the urgency of adapting both technology and procedures to meet these challenges head-on. The costs of inaction—financial, environmental, and human—are simply too high to ignore.
Looking forward, the industry will need to rely on a combination of regulation, innovation, and collaboration. Regulators must establish clear global standards, insurers must incentivize safety, and companies must invest in both technology and training. Together, these efforts can reduce the likelihood of catastrophic fires and ensure that the benefits of EV adoption do not come at the expense of maritime safety.
The future outlook is one of cautious optimism. While the risks are real and present, the maritime sector has a history of rising to meet safety challenges. By prioritizing prevention and preparedness, the industry can ensure that EV transport becomes as routine and safe as any other cargo. For seafarers, insurers, ports, and coastal communities, the stakes could not be higher, making this an issue that demands sustained attention and action.
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