KATHMANDU: The Morning Midas, a cargo ship that caught fire on June 3 and sank 20 days later in international waters near Alaska’s Aleutian Islands chain, is projected to cost the shipping and automobile industry about $560 million, according to Anderson Economic Group.
The vessel transporting 3,048 vehicles from China, including 750 electric and hybrid cars from brands like Chery and Great Wall Motors, was on its way to Mexico when the fire broke out.
It remains unclear what caused the fire.
This incident marks the third significant disaster involving EV-related cargo ships in just over three years, following the Felicity Ace (2022) and Fremantle Highway (2023). Total losses caused by these accidents in the industry are estimated at around $1.8 billion.
Experts say electric vehicles heighten the risk of severe fires at sea due to potential explosions and thermal runaway. Crews often lack the necessary training and equipment to handle such fires.
Marine risk consultants have suggested implementing better fire detection systems and increasing the spacing between EVs. They, however, caution that larger ships and smaller crews complicate prevention efforts.
“This is a huge cost and a serious warning for the industry,” said Patrick Anderson, CEO of Anderson Economic Group.
