The Global Shipping Business Network report focuses on the risk mitigation of the transportation of lithium-powered products in the maritime industry, which finds itself under increasing pressure to safely transport larger volumes of dangerous goods, which have reshape the fires at sea landscape.
According to the Global Shipping Business Network report “Fires at Sea, A New Landscape – Risk Mitigation Strategies for Safe Transport” dangerous goods (DG) given their potential consequences, have received significant attention in conversations surrounding cargo handling.
For some special categories of hazardous non-dangerous goods, such as lithium batteries, existing guidelines cannot fully mitigate the risks associated with improper handling.
In the case of lithium batteries, mechanical damage, thermal stress, or overcharging can trigger the release of toxic, flammable and explosive gases, among other issues. Furthermore, fires caused by these batteries are uniquely dangerous due to their rapid and intense nature. Additionally, the toxic gases released pose serious health risks to the crew.
Of particular concern to insurers and the shipping industry at large is the risk of thermal runaway — a rapid, self-sustaining fire that can lead to explosions.
Temperature risks and thermal runway
Even non-DG cargo that is sensitive to fluctuations in temperature may present critical risks if not handled properly. For example, low risk cargo like cocoa butter can lead to fires if incorrectly stored in temperatures higher than 35°C. In the case of lithium batteries, temperatures between 35°C and 60°C present risk for thermal runway and if temperatures exceed 60°C, there is a high chance of explosion.
As an example, the March 2022 Felicity Ace incident, in which a car carrier sank with 4,000 vehicles on board, not only was the lost cargo cost estimated at US$155 million for car manufacturers, but it also resulted in total vessel loss.
According to reports by the World Economic Forum (WEF), nearly three-quarters of all lithium that is mined is now being used for batteries. Rising demands for consumer electronics, electric vehicles (EVs) and renewable energy storage mean that the lithium battery market is estimated to grow by over 30 percent annually until 2030, highlighting the urgent need to enact policies that can minimise temperature risk.
Despite industry-wide acknowledgement that temperature related protocols are necessary there is yet to be a universal protocol. While some organisations and companies have attempted to monitor or govern the handling of temperature-sensitive cargo, the difference in protocols can lead to significant hazards in fluctuating temperature environments.
New battery regulations in Europe impose strict recovery requirements on manufacturers, mandating minimum proportions of recycled metals including lithium, in new batteries by 2031. These proportions will increase further by 2036. The increased demand for used batteries transport presents unique challenges. Used or waste batteries have distinct risk factors and require specialised handling by carriers compared to new batteries, adding another layer of difficulty.
Mitigating container fire risks: The critical role of temperature monitoring
Temperature management for cargo, especially non-dangerous but temperature-sensitive goods, is critical to ensuring safety during transport. According to the IMDG Code, cargo must be stowed at least 2.4 meters away from heated ship structures, such as steam pipes and heated fuel tanks, where surface temperatures may exceed 55°C.
Certain cargo types may also require “under deck” stowage to avoid exposure to direct sunlight, with 35°C identified as a key threshold for critical cargo. To mitigate risks, ports and operators are adopting proactive measures.
The colour coating and material of a container has a significant impact on the inside temperature of containers while exposed to direct sunlight. At noon under direct sunlight, unplugged reefer containers with white coating enjoy an internal temperature 20°C lower than general containers with maroon coating under similar conditions
Where a container is stowed is another important factor. A general container placed below other containers—compared to a general container directly exposed to sunlight—experiences a 14°C lower temperature after 9 hours of exposure.
One September voyage from China to the US East Coast via the Panama Canal had ambient temperatures above 35°C in the cargo hold for over 12 days (between Mexico and New York). Hence, location and seasonality are also important parameters for risk assessment.
In addition, advanced monitoring technologies such as thermal imaging cameras (TICs), temperature data loggers, portable weather stations, and infrared temperature-scanning systems are increasingly used to monitor and manage container temperatures in real time. These systems can automatically initiate spray cooling if container temperatures surpass safe limits.
However, while these tools enhance operational safety, they must be supported by accurate and standardised information exchange between cargo owners, booking carriers, and vessel operators. Effective communication should begin at the shipping instruction phase and continue through execution, using structured data protocols.
“Today, carriers face growing challenges in safely transporting dangerous goods, driven by rising shipments of batteries for electric vehicles, new energy solutions, and consumer electronics, as well as increased demand for used and damaged battery shipments. This calls for new methods in safer handling and smarter stowage planning,” said Ann-Christin, Chair, SMDG.
Read the report: GSBN Insights Aug 2025: Fires At Sea A New Landscape