Volkswagen Sued by Allianz & MOL Over Felicity Ace Sinking

The owner of the Felicity Ace vessel and its insurance provider have initiated legal action in Germany against Volkswagen, attributing the ship's fire and eventual sinking to the car manufacturer.

Mitsui OSK Lines alongside Allianz pinpointed a defective battery in an electric Porsche as the catalyst for the inferno, which led to the loss of 3,965 vehicles approximately 400 km from Portugal's coast two years prior.

This blaze engulfed the 6,400 car equivalent unit (ceu) ship for three weeks, with damage costs projected to be in the range of $400 million to $500 million. The cargo included luxury vehicles such as Bentleys, Lamborghinis, and 1,100 Porsches.

Lithium-ion batteries, utilized in electric vehicles, are known to reach exceedingly high temperatures of over 2,700 degrees Celsius when ignited. The occurrence of battery-related fires at sea has been on the rise, correlating with the global surge in electric vehicle demand, as reported by Splash.

An Allianz Global Corporate & Speciality report underscored the risks associated with transporting lithium-ion batteries on maritime vessels, identifying fires and explosions as the leading cause of marine insurance claims by value from 2017 to 2021.

Allianz, in its report, highlighted the ongoing debate within the maritime industry regarding electric vehicles (EVs), specifically the discussion around the potential need for specialized roll-on/roll-off (roro) vessels designed for EV transport.