Skip to main content

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

Labels:

Comments

Post a Comment

Popular posts from this blog

Definition of Charcoal, Purpose, Benefits, Types, and Types that Need to Know

Definition of Charcoal, Purpose, Benefits, Types, and Types that Need to Know Charcoalnewsroom A Brief Overview of Charcoal in Indonesia Indonesia is one of the world's leading producers in the charcoal industry. Blessed with abundant natural resources such as hardwood and coconut shells, Indonesia successfully produces various types of high-quality charcoal. Indonesia charcoal products are highly sought after in global markets, ranging from household to heavy industrial needs. Through the platform CharcoalNewsroom , accurate, reliable, and easily understandable information about the charcoal world is now accessible to everyone around the globe. Definition of Charcoal Charcoal is a black, porous residue produced by heating organic materials such as wood or coconut shells in the absence or limited presence of oxygen through a process called pyrolysis. Here are several definitions from trusted sources: Wikipedia : "A lightweight black carbon residue produced by strong...
Post a Comment
Read more

FCL Vs LCL Container

  Full Container Load (FCL) vs Less than Container Load (LCL): Why Charcoal Must Be Shipped FCL Introduction In international shipping, choosing the right method of transport is crucial for protecting your product and ensuring smooth delivery. Two commonly used methods are Full Container Load (FCL) and Less than Container Load (LCL) . If you're in the charcoal export business , understanding the difference between FCL and LCL is not just important — it’s essential. Not all products are suitable for shared containers, and charcoal is one of them . Why? Because charcoal is considered a Dangerous Goods (DG) commodity. Let’s dive in. What is FCL (Full Container Load) ? FCL means one exporter rents and fills an entire shipping container with their goods. No sharing. You have full control over: Loading method Packaging layout Documentation Cleanliness and safety Key Benefits of FCL: Lower risk of damage or contamination Faster handling at ports Better suited for ...
Post a Comment
Read more

Charcoal Briquette vs Hardwood Charcoal

  Charcoal Briquettes vs Hardwood Charcoal : Which One Is Right for Your Market? Introduction In the competitive world of charcoal exports, choosing the right product is crucial to business success. Two of the most popular charcoal types are charcoal briquettes and hardwood lump charcoal . Each has its own strengths, characteristics, and target markets. At CharcoalNewsroom , we aim to help exporters and charcoal suppliers understand these differences to make smarter decisions — especially in the context of the Indonesia charcoal , BBQ charcoal , shisha charcoal , and charcoal manufacturing industries. Definitions from Trusted Sources Charcoal Briquette According to the Food and Agriculture Organization (FAO) : “Charcoal briquettes are a manufactured fuel formed by compressing pulverized charcoal with a binder, often used for domestic and industrial heating because of its uniformity and extended burn time.” ( FAO Forestry Paper No. 63 – www.fao.org ) “Charcoal briquettes are com...
Post a Comment
Read more