MSC sues CargoLoop over electric vehicle fire

MSC Mediterranean Shipping Co (MSC) is suing US vehicle logistics specialist CargoLoop for around $273,000 after alleging that improperly secured electric vehicles caused an onboard fire during a voyage from California to Lithuania. The dispute centres on two containers supplied by CargoLoop and loaded with used, previously damaged battery-powered vehicles aboard the MSC Carlotta in August 2023. Cargo documents identified the vehicles’ ages and dangerous goods classification, and MSC accepted the shipment. CargoLoop packed the vehicles inside 40-foot high-cube containers using wooden racks, allowing at least one car to be positioned above another. MSC alleges that an explosion and fire broke out in one of the containers while the ship was sailing off Baja California in the early hours of September 2, 2023. The blaze then spread to a second CargoLoop container carrying electric vehicles. Several surrounding boxes were damaged by fire or by water used during firefighting. The crew extinguished the blaze, but the ship diverted to Mexico so the damaged containers could be discharged, inspected and restowed. According to MSC’s complaint, investigators traced the likely origin to an area containing a 2018 Tesla Model S positioned above a 2012 Ford Focus. MSC claims the wooden racking may have failed during the voyage, allowing the Tesla to collapse onto the Ford and potentially damage a battery pack. The carrier said similar racking failure was found in another CargoLoop container on the same sailing. MSC has also advanced alternative explanations, alleging that batteries may have been damaged during forklift handling or that required precautions, including disconnecting vehicle batteries, were not followed. CargoLoop has yet to respond publicly to the allegations. Follow Us Sam Chambers Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune. Newsletter DAILY SPLASH NEWSLETTER Subscribe now for FREE daily news updates. Subscribe Read Next August 4, 2026 Torm tied to MR newbuild series in China August 4, 2026 Minerva adds to boxship newbuild series August 4, 2026 Arcadia expands newbuild programme with Hengli LR2 trio August 4, 2026 Three seriously injured as drone strikes Turkish roro off Novorossiysk August 4, 2026 Crewmember missing after bulker struck in Hormuz