Collapsed freighter filled with Volkswagen vehicles, entangled in a financial disagreement, involving vast sums of money. - Decision on the directive application remains pending by the Commission.
The car transport ship MS Felicity Ace, loaded with around 4,000 new vehicles from the Volkswagen Group, tragically caught fire off the Azores in February 2022. Investigations later revealed that the fire was caused by an electrical fault from an improperly disconnected battery in a used vehicle aboard the vessel.
The incident resulted in a catastrophic loss, with the sinking of the ship causing damage estimated in the hundreds of millions of dollars. A civil lawsuit seeking damages in the tens of millions is currently underway at the Regional Court of Braunschweig, involving two unnamed companies of the Volkswagen group. The defendants deny the claim and assert that the fire had a different cause.
The MS Felicity Ace incident has highlighted the need for improved fire-fighting capabilities on vessels transporting electric vehicles, particularly those carrying lithium-ion batteries. These fires are notoriously difficult to extinguish due to their high temperatures, toxic gases, and propensity to reignite hours or days after suppression.
In response, maritime safety leaders and vessel operators are focusing on enhancing safety protocols specific to EV battery risks, improving ship compartment design, upgrading fire detection and response systems, and conducting more rigorous safety tests on electric car carriers.
The German Insurance Association (GDV) has long advocated for better fire-fighting equipment on large transport ships, following a devastating fire in a previous context. Jörg Asmussen, the CEO of GDV, stated that for cargo values up to 500 million euros on board, more safety should be invested in such ships.
The trial regarding the sinking of the MS Felicity Ace is currently underway, with the initial hearing aiming to identify the legal key points from the court's perspective. Seven plaintiffs believe a battery of an electric car caused the fire, while the defendants claim that the sinking could have been prevented by careful action.
While the outcome of the trial will determine the liability for the loss, the broader industry is already taking steps to address the unique challenges posed by lithium-ion battery fires in marine environments. The MS Felicity Ace incident serves as a stark reminder of the need for continuous improvement in maritime safety, particularly in the rapidly evolving world of electric vehicles.
The community is advocating for a revised policy on maritime safety, focusing on vocational training for firefighting and handling lithium-ion batteries on vessels. This training is crucial for preventing and managing fires in the transportation of electric vehicles, as the industry recognizes the financial risks associated with such fires.
Finance leaders, in conjunction with maritime safety experts, are discussing potential investments in advanced fire-fighting equipment for large transport ships, aiming to minimize the financial losses due to incidents similar to the MS Felicity Ace. This stance is supported by the German Insurance Association, who have long emphasized the importance of enhanced safety measures to mitigate risks in marine environments.
