Allianz says car-shipping incidents are actually a serious explanation for loss for the insurance coverage trade after a cargo ship with about 4000 Volkswagen autos caught fireplace and sank within the Atlantic two months in the past.

Fires on board automobile carriers have grow to be a loss driver over the previous decade, in response to a report printed on Tuesday by Allianz International Company & Specialty, the German firm’s industrial insurance coverage arm. In lots of circumstances, fires resulted within the whole lack of cargo and vessel, it added.

The Felicity Ace, transporting Porsche, Audi, Lamborghini and different automobiles, sank off the coast of Portugal’s Azores in March.

Automobile carriers, the most important of which might maintain as many as 8000 autos, are vulnerable to stability points and fires, mentioned Justus Heinrich, head of marine in Central & Japanese Europe at AGCS.

The vessels had been already below scrutiny following a string of incidents, he mentioned. “And now we’ve got the Felicity Ace. These casualties are very complicated and costly to resolve,” he mentioned.

The Felicity Ace, transporting Porsche, Audi, Lamborghini and different VW Group automobiles, sank off the coast of Portugal’s Azores after being battered by waves and leaning 45 levels to its starboard aspect, the ship’s operator mentioned on the time.

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Allianz mentioned open decks permit fires to unfold shortly, whereas any water ingress will have an effect on the soundness of the so-called roll-on roll-off vessels.

They’re below industrial stress with brief turnaround instances at port, which can lead to ships crusing earlier than the crew has verified ballast calculations or accomplished lashing and securing watertight doorways, it added.

Analysis factors to further fireplace dangers from electrical autos, Allianz mentioned, as checks have proven that ship water sprinkler methods alone aren’t efficient at extinguishing an EV fireplace.