[[{“value”:”
In a dramatic turn of events, the Morning Midas, a cargo ship carrying approximately 3,000 vehicles—including 800 electric vehicles (EVs)—was abandoned in the Pacific Ocean on June 3, 2025, after a fire broke out 300 miles southwest of Adak, Alaska. The blaze, which reportedly originated on a deck loaded with EVs, forced the evacuation of all 22 crew members, who were safely rescued by the U.S. Coast Guard and transferred to a nearby merchant vessel. The incident has reignited debates about the safety of transporting EVs on car carriers and raised questions about the ripple effects on insurance markets for both maritime shipping and homeowners with EVs.
The Morning Midas Incident
The Liberia-flagged Morning Midas departed Yantai, China, on May 26, bound for Lazaro Cardenas, Mexico, when smoke was detected just after midnight UTC on June 3. According to Zodiac Maritime, the ship’s operator, the crew immediately activated onboard fire-suppression systems, but the fire proved uncontrollable. The U.S. Coast Guard has deployed aircrew and a cutter ship to assist, with three vessels already on the scene to support salvage and firefighting efforts. The cause of the fire remains under investigation, but the presence of lithium-ion batteries in the EVs has drawn scrutiny due to their known risk of thermal runaway—a self-sustaining chemical reaction that makes fires difficult to extinguish and prone to reignition.
This is not the first time a car carrier has faced such a crisis. In 2022, the Felicity Ace sank in the Atlantic after a fire involving 4,000 vehicles, including luxury EVs, resulting in an estimated $155 million loss for Volkswagen Group. A year later, the Fremantle Highway caught fire off the Netherlands, with speculation—later debunked—that EVs were to blame. These incidents have heightened concerns about the risks of transporting EVs, prompting action from insurers and ship operators alike.
Insurance Carriers Tighten Protocols for Car Carriers
The maritime insurance industry, already grappling with a decade-high 209 ship fires in 2022, is responding to the growing prevalence of EVs on car carriers with stricter safety protocols and rising premiums. The International Union of Marine Insurance (IUMI) has emphasized that while EV fires are not more frequent or inherently more dangerous than those involving internal combustion engine vehicles (ICEVs), their potential for thermal runaway requires specialized firefighting measures, such as boundary cooling to prevent fire spread.
Insurers like Allianz have highlighted the financial risks posed by EV-laden car carriers, noting that the high value of vehicles onboard amplifies potential losses. Following incidents like the Felicity Ace, marine insurers have introduced recommendations to mitigate risks, including:
-
Early fire detection systems to identify blazes before they spread.
-
Drencher and CO2 extinguishing systems for rapid fire suppression.
-
High-expansion foam systems to smother lithium-ion battery fires.
-
Cargo policies limiting EV battery charge to 20-50% state of charge (SoC) to reduce the risk of thermal runaway.
-
Segregation of EVs on ships to isolate potential fire sources.
These measures come at a cost. John Frazee, a managing director at insurance broker Marsh, notes that ship owners are facing higher premiums as insurers adjust for the added risks of EV transport. Additionally, automakers are purchasing extra liability protection to cover potential claims if their vehicles are found to have caused a fire. The Morning Midas, insured in part by Steamship Mutual, underscores the financial stakes, with salvage operations likely to drive costs into the millions.
The International Maritime Organization (IMO) is also taking action, with plans to evaluate new safety regulations for ships carrying EVs starting in March 2024. Proposed measures include specifying water extinguisher types and limiting battery charge levels to reduce flammability risks. These changes could further increase operational costs for shippers, potentially impacting global auto supply chains.
Homeowners Insurance and EVs: A Growing Concern
The risks associated with EVs extend beyond the high seas to the driveways of homeowners. As EV sales surged to 1.3 million in the U.S. in 2024, insurers are increasingly scrutinizing the impact of home charging on homeowners’ policies. Lithium-ion batteries, while less likely to ignite than gasoline-powered vehicles (25 fires per 100,000 EVs vs. 1,529 per 100,000 ICEVs), burn hotter and are harder to extinguish when they do catch fire. This has prompted insurers to reassess risk profiles for homeowners with EVs.
Jenny Naughton, a risk consulting officer at Chubb, emphasizes that homeowners are not currently required to notify insurers when purchasing an EV, and EV ownership does not automatically increase premiums. However, she recommends that EV owners inform their brokers about fire mitigation measures in their homes, such as smoke detectors, heat detectors in garages, and residential sprinkler systems. These can qualify for discounts and help offset potential rate increases.
Despite this, the National Association of Insurance Commissioners reports that EV insurance costs up to $44 more per month than for gas-powered vehicles, driven by higher repair costs due to specialized parts and labor. For homeowners, charging EVs at home introduces risks like electrical surges and fire hazards, particularly with Level 2 chargers that require 240V outlets. Standard homeowners’ policies typically do not cover vehicles or charging equipment, so owners may need to adjust their coverage to account for these risks. Liberty Mutual suggests that adding an EV could qualify for a Multi-Vehicle Discount, but homeowners should review policies to ensure adequate protection.
The Bigger Picture
The Morning Midas fire is a stark reminder of the challenges posed by the global shift to EVs. While EVs offer environmental benefits, their lithium-ion batteries introduce unique risks that the maritime and insurance industries are still learning to manage. For car carriers, stricter safety protocols and rising insurance costs could reshape the economics of vehicle transport. For homeowners, the growing presence of EVs in garages may lead to higher premiums unless proactive risk mitigation measures are adopted.
As salvage operations continue off the coast of Alaska, the Morning Midas serves as a cautionary tale. The energy transition is not without its hurdles, and stakeholders—from ship operators to insurers to EV owners—must adapt to ensure safety and financial stability in an electrified future.
Energy News Beat will continue to monitor developments in this story and the broader implications for the energy and transportation sectors.
Sources:
-
Bloomberg: “Ship Carrying EVs Abandoned in Pacific After Catching Fire”
-
Bangkok Post: “Ship carrying EVs abandoned in Pacific after catching fire”
-
Toronto Sun: “Ship carrying electric vehicles abandoned in Pacific after fire”
-
Insurance Journal: “Burning Cargo Ship Carrying 3,000 Vehicles Abandoned Off Alaska”
-
Reuters: “Ocean shippers playing catch up to electric vehicle fire risk”
-
Insurance Business America: “Electric vehicles: What risks do they pose to homes?”
-
Bankrate: “Electric Car Insurance: Cost and Considerations”
-
Liberty Mutual: “Electric cars and insurance – FAQs”
-
gCaptain: “Marine Insurers Publish Recommendations for Safe Carriage of Electric Vehicles”
-
CleanTechnica: “A Ship Carrying Electric Cars Is On Fire!”
The post Cargo Ship Fire Sparks Concerns Over EV Safety and Insurance Challenges appeared first on Energy News Beat.
“}]]