TT Club calls for joining efforts on proper cargo declaration

The Club notes that four significant incidents within the past four months involving fires on container ships, including the ‘Northern Juvenile’ in the South China Sea, ‘Maersk Frankfurt’ in the Indian Ocean, ‘MSC Cape Town III’ in Colombo, and ‘YM Mobility’ in Ningbo. Investigations suggest that dangerous chemicals and fire accelerators, such as lithium-ion batteries, may have contributed to at least two of these incidents, pointing to failures in communication and handling throughout the supply chain.

The frequency of such incidents is concerning, even though the 30-year average for container ship fires remains one every 60 days, TT Club informs. Fires at sea can have even more catastrophic consequences, as demonstrated by the ‘Maersk Frankfurt’ incident, which resulted in the death of a crew member and a fire that burned for several days.

Estimating the number of containers carrying dangerous goods is challenging due to mis- and non-declaration. In response, the IMO amended its guidelines in 2022 to encourage thorough inspections of all cargo transport units, regardless of declared contents.

Furthermore, according to Allianz’ Safety and Shipping Review 2024, as with Ro-ro vessels, the exact cause of many container ship fires is uncertain, although mis-declared hazardous goods, such as chemicals, batteries, and charcoal, are often a contributing factor.

Transportation of lithium-ion batteries, particularly if they have been mis-declared as a cargo is a particular concern on larger vessels. The larger the vessel, the larger the potential claim. Where you have more than 20,000 containers onboard, a mis-declared cargo can result in a very large loss.

… explained Régis Broudin, Global Head of Marine Claims, Allianz Commercial.

As TT Club informs, from a sample size of just 0.03% of containerized traffic, deficiencies in placarding and marking, which are critical for alerting stakeholders and emergency responders, remain above 40%. Additionally, reports of deficiencies in stowage and securing within units—a core issue under the CTU Code—have worsened over the past five years, reaching the highest levels since reporting began in 2001.

The trend of documentation errors has also deteriorated, emphasizing the need for improved communication, due diligence, and a culture of safety throughout the supply chain to prevent future incidents, TT Club notes.

In this regard, we applaud the recent statement by China’s Maritime Safety Administration (MSA) that underlined shippers’ responsibilities, in addition to those of the carriers Such warnings and encouragements by regulatory authorities are to be welcomed. However, TT would reiterate the statement that regulations merely set the baseline.

… said TT’s Risk Management Director, Peregrine Storrs-Fox