The Felicity Ace cargo ship's crew was forced to abandon ship after a fire broke out in one of its holds, leaving it adrift in the mid-Atlantic.
The ship, which can carry more than 18,700 tons of cargo, was loaded with luxury cars from brands such as Bentley, Porsche, Lamborghini, and Audi, as widely reported in the mainstream media.
In fact, the Felicity Ace was carrying 3,945 cars when the fire broke out while it was sailing west of Ponta Delgada, Portugal.
According to software company Skytek, at a starting price of $99,650, the total value of the cars could exceed the $500 million mark.
With cargo typically insured at full replacement value, especially for high-value items, Skytek estimates a $500 million loss for the marine re/insurance industry.
Skytek also claims that the ship's market value is $24.5 billion. And that the vessel's owners are looking for an ocean-going tug to transport it to a nearby port, though it's unclear which one can accommodate its size.
According to Allianz Global Corporate & Specialty (AGCS), a subsidiary of the global insurer, while shipping losses have decreased by half over the last decade, fires on board ships remain one of the most serious safety concerns, and have actually increased significantly in recent years.
Over the last ten years, AGCS has discovered that fires have been the third leading cause of shipping losses, with total losses reaching a four-year high of ten at the end of 2020.
"Over the last decade, the shipping industry's safety record has improved significantly, with the number of total losses now at record lows," said Captain Rahul Khanna, Global Head of Marine Risk Consulting at AGCS.
"However, as evidenced by the recent increase in incidents, fires on car carriers, Roll-on/Roll-off ferries (RoRos), container ships, and other vessels remain among the sector's top concerns."
"RoRo and car carrier vessels, in particular, are more vulnerable to fire and stability issues than other vessels, necessitating a greater emphasis on risk management." The internal spaces are not divided into separate sections to facilitate the carriage of automobiles, as is the case with other cargo ships. The absence of internal bulkheads can have a negative impact on fire safety, as a small fire on one vehicle or battery can quickly spread out of control. Once loading is complete, vehicles are not easily accessible.
"In the event of a fire, the large volume of air inside the open cargo decks provides a ready supply of oxygen." "At AGCS, we take a close look at operator risk management and have collaborated with a number of companies operating ro-ro vessels to develop a robust risk management program," he added.