Given the many difficulties in suppressing battery fires, particularly at sea, focusing on loss prevention measures is crucial, whether batteries are transported within EVs or as standalone cargo, according to a new risk bulletin published from marine insurer Allianz Global Corporate & Specialty (AGCS).
Captain Rahul Khanna, Global Head of Marine Risk Consulting at AGCS, said, “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.”
As a key component of electric vehicles (EVs) or electronic devices, the transport of highly inflammable lithium-ion (Li-ion) batteries is increasingly impacting shipping safety as demonstrated by a number of fires on vessels such as roll-on roll-off (ro-ro) car carriers and container ships.
In fact, the pressing issue of fires onboard was prominent at Allianz’s latest Safety and Shipping Review. AGCS noted that there have been over 70 reported fires on container ships alone in the past five years.
Fires often start in containers, which can be the result of non-/mis-declaration of hazardous cargo, such as chemicals and batteries – around 5% of containers shipped may consist of undeclared dangerous goods. Fires on large vessels can spread quickly and be difficult to control, often resulting in the crew abandoning ship, which can significantly increase the final cost of an incident.
Hazards and causes
The risk bulletin “Lithium-ion batteries: Fire risks and loss prevention measures in shipping”: highlights four main hazards:
– Fire (Li-ion batteries contain electrolyte, an ignitable liquid);
– Explosion (resulting from the release of ignitable vapor/gases in a confined space);
– Thermal runaway (a rapid self-heating fire that can cause an explosion);
– Toxic gases that these hazards can produce.
According to Allianz, the most common causes of these hazards are:
– Substandard manufacturing of battery cells/devices;
– over-charging of the battery cells;
– over-temperature by short circuiting;
– damaged battery cells or devices.
“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 due to factors such as early detection being difficult, a shortage of crew members on board, and if the vessel’s firefighting capabilities are inadequate,” said Captain Khanna.
Loss prevention guidance
Guard against the four most common causes of loss with the following preventative steps:
1. Choose a reputable manufacturer
In this growing competitive market, manufacturers of Li-ion batteries can range from excellent to substandard. Manufacturing the batteries is a complex process and packaging specifications are very detailed. Both are key to keeping Li-ion batteries safe during transportation. Industry standards and testing requirements have been developing over the past few years to provide guidance on how to test and validate the batteries, as well as how to provide proof these requirements are being met.
a. Guidance: The UN Manual of Tests and Criteria sets out a series of design tests that must be completed by manufacturers of Li-ion batteries.
b. Proof: Test Summaries (TS) are now required and must be made available by manufacturers. The TS should attest to the fact that the standards specified in the UN Manual of Tests and Criteria (part III, subsection 38.3, paragraph 38.3.5) have been met. Since January 1, 2020, these TS have been a requirement for international air cargo, as instructed by the International Civil Aviation Organization (ICAO), and vessel shipments, according to the International Maritime Dangerous Goods (IMDG) Code. For US domestic shipments, a TS report has only been required since January 1, 2022, and is to be made available to downstream shippers and consumers in the distribution chain.
The recommendation is to request a TS report from the manufacturer.
2. Check the battery’s state of charge
The ideal state of charge (SOC) for transporting purposes is between 30% and 50% depending on your battery manufacturer’s recommendation, the battery size/type, the time anticipated in storage before being used, and its ultimate usage.
The recommendation is to request information from the supplier/manufacturer on the battery’s SOC.
3. Beware of short circuits
Short circuiting is a problem if the protection provided by the manufacturer and shipper between the terminals or cells (cathode/anode) is compromised. Once a short circuit develops, if the heat being generated by the short circuit is unable to dissipate (as in a closed package, or an intermodal freight container) the internal temperature will rise quickly to a point of ignition, which may be quickly followed by a thermal runaway event, or an explosion caused by the rapidly expanding dangerous gases being given off.
The recommendation is to request a TS report from the supplier/manufacturer as proof that compliance has been met.
4. Follow packing instructions and train your staff
Cargo damage is one of the most common claims handled by the AGCS marine team. Battery shipments, whether large standalone storage units or palletized container loads that have been packaged according to Dangerous Goods Regulations, have to withstand the rigors of transit. This includes numerous touch points and handling of cargo, which can lead to damaged cells, batteries, and packaging. Cartons can get dropped, hit by forklifts, or crushed by superimposed cargoes, any of which can compromise the battery/cell itself and introduce one of the previously listed hazards.
Loss prevention measures for EVs on car carriers and in containers
Recommendations to mitigate the fire risk include:
– Ensuring staff are trained to follow correct packing and handling procedures and that seafarers have had Li-ion battery firefighting training;
– Checking the battery’s state of charge (SOC) is at the optimal level for transportation where possible;
– Ensuring that EVs with low ground clearance are labelled as this can present loading/discharging challenges;
– Checking all EVs are properly secured to prevent any shifting during transportation.
In transit, anything that can aid early detection is critical, including watchkeeping/fire rounds and utilizing thermal scanners, gas detectors, heat/smoke detectors, and CCTV cameras.
The report also highlights a number of measures that can help ensure safe storage of Li-ion batteries in warehouses, noting that large-format batteries, such as those used in EVs, ignite more quickly in a warehouse fire than smaller batteries used in smartphones and laptops.
Other recommendations include:
– Training staff in appropriate packing and handling procedures;
– Establishing an emergency response plan to tackle damaged/overheating batteries and a hazard control plan to manage receiving, storage, dispatch and supervision of packaged Li-ion batteries;
– Preventing the exposure of batteries to high temperatures and ensuring separation from other combustible materials;
– Prompt removal of damaged or defective Li-ion batteries.
“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,” says Captain Randall Lund, Senior Marine Risk Consultant at AGCS.
Ro-ro and car carrier risks
Ro-ro and car carrier vessels can be more exposed to fire and stability issues than other vessels and require additional emphasis on risk management. To facilitate carriage of automobiles the internal spaces are not divided into separate sections like other cargo ships.
The lack of internal bulkheads can have an adverse impact on fire safety and a small fire on one vehicle or battery can grow out of control very quickly. Vehicles are not easily accessible once loading has been completed. The large volume of air inside the open cargo decks provides a ready supply of oxygen in case of fire.
A number of accident investigations have revealed that pre-sail away stability checks were either not carried out as required or were based on inaccurate cargo information. In many cases cargo was not fully secured prior to sailing and inadequate lashing of cargo such as EVs could lead to a thermal runaway and ensuing fire. For cargo ro-ro and vehicle carriers, improved cargo securing and weather routing should be considered.
Other findings from the risk bulletin:
AGCS analysis of over 240,000 marine insurance industry claims over the past five years (with a value of €9.2bn), shows that fire/explosion (from all causes) is the most expensive cause of loss, accounting for 18% of the value of all claims.
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. 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).
Ro-ro and car carriers can be more exposed to fire and stability issues than other vessels. To facilitate carriage of automobiles the internal spaces are not divided into separate sections like other cargo ships. The lack of internal bulkheads can have an adverse impact on fire safety and a small fire on one vehicle or battery can grow out of control very quickly. Vehicles are not easily accessible once loading has been completed. The large volume of air inside the open cargo decks provides a ready supply of oxygen for fire to develop.
Download the report: Allianz Lithium-ion batteries: Fire risks and loss prevention
