MSC Sends a Message on Container Fire Safety By Suing a Customer
Cargo fires rank at the top of the list of hazards aboard a modern container ship, in part because the operator has limited control over the cargo. A container is a solid steel box, and a productive crane operator can move dozens of them on and off the ship every hour. In general, the ship sails with the cargo it's given - along with any risks hidden therein. In a lawsuit filed last week in New York, number-one ocean carrier MSC is sending a warning to cargo owners: it is seeking steep damages from one of its customers for allegedly setting up the conditions for a cargo fire.
In August 2023, the specialist auto auction and car transport firm CargoLoop provided to MSC a container filled with "used, previously-damaged battery-powered vehicles" for a long voyage from California to Lithuania. The age of the electric vehicles in the consignment was disclosed on the bill of lading, as was their IMDG code, and MSC accepted it for shipment. (Some other carriers, notably ACL and Matson, do not accept used EVs in any condition due to perceived fire risk.) CargoLoop packed the container, according to MSC, using a racking system made of wood to secure the vehicles. To fit more cars into the 40-foot high cube, at least one car was racked atop another.
In the early hours of September 2, 2023, the ship (identified as MSC Carlotta on cargo documents) was navigating off Baja California when an explosion and fire occurred on board. MSC alleges that the blast came from CargoLoop's container, and that it caught fire to a second container nearby, also supplied by CargoLoop and filled with electric cars. Several other boxes were damaged by the fire, or by water leakage and flooding from firefighting.
The crew extinguished the blaze, and the ship had to call in Mexico to unload, inspect and restow the two damaged CargoLoop boxes. In the process, a hired-in fire investigation firm came to look at the affected containers. According to MSC, the investigators determined that the fire started somewhere near a 2018 Tesla Model S and a 2012 Ford Focus, which was packed underneath the Tesla. The wooden racking may have failed in transit, MSC alleged, allowing the Tesla to collapse on top of the Ford and possibly damage its battery. Similar racking failure was found in another CargoLoop container on the same voyage, MSC alleged.
Alternatively, MSC suggests that one or more vehicles' battery packs may have been damaged through forklift handling; or, alternately, the forwarder may not have taken the required precaution to disconnect the vehicles' batteries - as allegedly found on surviving vehicles packed by CargoLoop in the other container.
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MSC is seeking a large payment from its former customer in compensation for its costs, including $60,000 for the fire survey, $60,000 for claim settlements from other cargo owners, $86,000 for extra handling and disposal, and $25,000 for container loss and damage - in all, about $230,000, plus attorneys' fees, interest, and $43,000 in pre-litigation mitigation.
Top image: VesselFinder / Erwin Willemse
