How Cargo Fires Are Becoming the Achilles’ Heel of Container Shipping

TL;DR: What You Need to Know

Fires aboard container ships are now the second-most frequent cause of major losses in ocean freight.
One serious cargo fire occurs every 9 days on average, with lithium batteries and undeclared dangerous goods as leading triggers.
Ports are not obligated to accept distressed ships, leaving cargo stranded offshore for weeks.
You can’t prevent fires; but you can protect your clients, reduce liability, and stay ahead of disruption.

The Numbers Are Getting Worse

CINS (2023): One container cargo fire every 9 days.
Allianz (2022): 209 fire incidents; the highest total in a decade.
LR OneOcean: 200 fires reported in 2022, a 17% year-over-year increase.
Gard Club: One serious ship fire every 60 days, across vessel types.

The trend is clear: cargo fires are no longer rare. They’re part of the operational landscape for global shippers and forwarders. The rise of lithium batteries, misdeclared hazardous goods, and ultra-large vessels has created a persistent background risk that traditional safety systems weren’t built to handle.

Why It Matters for Forwarders and Shippers

General Average Gets Triggered: Even if your cargo doesn’t burn, you may still be liable for a share of salvage costs, as in the Wan Hai 503 case.
Insurance Gets Complicated: Misdeclared or undeclared cargo can void coverage or delay claims, especially for lithium batteries or flammable materials.
Delays Become Nightmares: Fires often lead to diversion or full port refusal. Cargo may float offshore for weeks, unreachable, uninsured, and untrackable.
Reputation Gets Damaged: Whether or not you’re at fault, clients blame the forwarder first when deliveries disappear into legal limbo.

Cargo fires are not just vessel issues. They are customer service crises, financial risks, and operational headaches that fall squarely on your desk.

The Wan Hai 503 Case: What Happens When Things Go Wrong

On June 9, 2025, the Wan Hai 503 (4,333 TEU) caught fire off the coast of India. The cargo included multiple classes of hazardous materials — flammable solids, spontaneously combustible substances, toxic materials — all properly declared. But that didn’t help much when fire broke out in Hold No. 4.

Fire smoldered for over three weeks, fueled by collapsed containers and hatch failures.
Structural integrity fell to 76%. Boundary cooling continued, but the vessel listed and took on water.
India refused port refuge, citing environmental risk. The ship was towed 130 nautical miles out to sea, echoing the infamous X-Press Pearl scenario.

For cargo owners and forwarders, this meant:

No access to cargo for weeks
Unclear liability and delayed salvage negotiations
Confusion over delivery timelines and insurance coverage

If you’re in global logistics, you can’t afford to assume it “won’t happen to you.” The Wan Hai case is not an outlier.

What LSPs and Shippers Can Actually Do

You can’t stop cargo fires at sea; but you can reduce the risk and limit the fallout. Here’s what matters most:

Double-check cargo declarations. Don’t just trust the paperwork; audit it. Lithium batteries, charcoal, and flammables need to be declared properly, or you risk denied claims.
Know your carrier’s fire protocols. Ask about firefighting infrastructure, response procedures, and port-of-refuge arrangements. Not all carriers are equally prepared.
Build contingency into your routing. If you’re shipping hazardous goods, assume the vessel might not be allowed to dock. Have a plan B ready; alternate ports, emergency communications, and customer notice flows.
Review your insurance terms. Make sure you’re covered for general average, fire-related delays, and hazardous cargo handling especially for high-risk items like batteries or chemicals.

The stakes are too high to rely on compliance alone. Resilience now means layered preparation.

Key Takeaways

Container ship fires are increasing, with a serious incident now occurring every 9 days globally.
Detection and suppression systems on most vessels are outdated, especially for cargo hold fires.
Wan Hai 503 proves that even properly declared dangerous goods can spiral into catastrophe.
Forwarders and shippers need stronger documentation checks, insurance reviews, and contingency planning to handle fire-related disruption.

The fire risk isn’t theoretical. It’s structural, legal, and very real and logistics professionals need to treat it that way.

Sources

Still Have Questions? Here’s What LSPs Are Asking

Is it true that ports can legally refuse to take in a burning ship?
Yes. Under current IMO guidelines, there’s no obligation for coastal states to accept vessels in distress — even if lives or the environment are at risk.
What happens to cargo when a ship declares general average?
Cargo owners must contribute to the shared salvage costs — even if their container wasn’t damaged. Insurance is essential.
Can I protect my shipments if I’m not the carrier?
Yes. By verifying declarations, selecting safety-minded partners, and securing the right insurance, shippers and forwarders can significantly reduce exposure.
How do I know if my carrier is prepared for fires?
Ask. Carriers should be able to provide information on fire zones, detection systems, and emergency protocols. Lack of clarity is a red flag.