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Cargo Claims · Fire Incidents

Fire Incidents = Cargo Mega Losses

Why container ship fires dominate P&I pool claims and how cargo owners can realistically recover compensation.

Container ship fire

Container ship fires are no longer rare maritime accidents. They have become some of the most financially devastating incidents in global shipping, often resulting in the loss of hundreds of containers and prolonged legal disputes across jurisdictions.


Why Container Ship Fires Dominate P&I Pool Claims

Fire incidents are low-frequency but extremely high-severity events. Firefighting operations, loss of power to reefer containers, smoke contamination, and prolonged recovery timelines often convert otherwise sound cargo into actual or constructive total loss.

Burnt containers

Main Causes of Container Ship Fires

1. Misdeclared Dangerous Goods (DG)

Misdeclared dangerous goods remain the single biggest contributor to container ship fires. Incorrect declarations result in improper stowage and prevent the crew from responding effectively once a fire breaks out.

2. Lithium Batteries – A Systemic Risk

Lithium batteries pose a serious maritime fire risk due to thermal runaway. These fires are difficult to extinguish and may re-ignite, causing prolonged firefighting and widespread cargo damage.

3. Poor Packing and Improper Stuffing

Poor packing, blocked ventilation, and cargo movement increase heat buildup inside containers, accelerating fire spread even when the cargo itself is not inherently dangerous.

Container ship fires are not routine cargo claims — they are systemic loss events that reshape liability discussions entirely.

Legal Position Under Hague-Visby Rules

While carriers often rely on the fire exemption under the Hague-Visby Rules, this defence is conditional. The carrier must demonstrate due diligence and seaworthiness at the commencement of the voyage before relying on any exemption.


Claims-Handling Strategy for Cargo Owners

  • Establish total loss through surveys and commercial evidence
  • Link damage to carrier custody and prolonged delay
  • Use convention-based liability arguments
  • Push for commercial settlement where loss is undisputed

Cargo Damaged in a Fire Incident?

Professional cargo claims handling can significantly improve recovery outcomes.

Speak to a Claims Expert