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Container Catches Fire


 

Who Is Liable If a Container Catches Fire During Shipment?

A Guide for Exporters and Importers

In international trade, shipping goods in containers is common practice. But what happens if the container catches fire during transit—whether at sea, in port, or during inland transport? Understanding liability is essential to protecting your cargo, your business, and your financial interests.

Here’s a step-by-step guide to help exporters and importers determine responsibility in the event of a container fire.

1. Understand the Type of Shipping Agreement

The terms of sale and shipment (known as Incoterms) largely determine who holds responsibility during each stage of the transport.

  • FOB (Free on Board): The buyer assumes risk once goods are loaded on the vessel.

  • CIF (Cost, Insurance, Freight): The seller covers insurance and cost until the destination port.

  • DAP (Delivered at Place): The seller is responsible until the goods reach the agreed location.

📌 Check your sales contract carefully.

2. Identify the Cause of the Fire

Responsibility often depends on what caused the fire. Common causes include:

  • Electrical faults in refrigerated containers (reefers)

  • Spontaneous combustion of cargo (e.g., improperly dried charcoal)

  • Misdeclared hazardous goods

  • Shipboard accidents or human error

📌 If your product is flammable (like coconut charcoal), strict packaging and documentation are vital.

3. Who Pays for the Damages?

Here are the most common scenarios:

  • Carrier's fault (e.g., fire due to poor vessel maintenance): The shipping line may be held liable.

  • Shipper's fault (e.g., cargo not properly declared or packed): The exporter or freight forwarder could be responsible.

  • Accident at sea (e.g., rough weather): Often considered a force majeure event, covered by insurance.

  • Port authority or terminal accident: Responsibility lies with the port operator.

4. Importance of Marine Cargo Insurance

Having insurance is the best way to protect your cargo financially in case of fire or loss.

Types of insurance coverage:

  • All-Risk Insurance: Covers most risks including fire.

  • Total Loss Only (TLO): Only covers if the entire shipment is lost.

  • Named Perils: Covers specific risks listed in the policy.

✅ Exporters using CIF terms must provide the buyer with a valid insurance certificate.

5. What Should You Do After a Container Fire?

  • File a claim immediately with your insurer or broker

  • Collect evidence: Photos, packing list, commercial invoice, bill of lading

  • Request a survey report from the shipping line or third-party surveyor (e.g., SGS, Intertek)

  • Check liability clauses in the bill of lading or freight contract

Conclusion: Be Prepared, Not Surprised

Container fires, though rare, can cause massive losses. Exporters of flammable goods like charcoal briquettes must take extra precautions to ensure safety and compliance. Understanding your contractual obligations, securing proper insurance, and working with reliable freight forwarders can make a major difference when disaster strikes.

For more export tips and updates on international shipping safety, visit Charcoal Newsroom and follow us on Instagram @charcoalnewsroom.

Also read: How to Package Charcoal for Safe Export, Maersk Line 

#CharcoalExport #ContainerFire #ShippingLiability #CoconutCharcoal #ExportInsurance #MarineCargo #InternationalShipping #CharcoalNewsroom  #LogisticsSafety

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