Mediterranean Shipping Co (MSC) is suing US vehicle logistics specialist CargoLoop for around $273,000, according to Splash247, after alleging that improperly secured electric vehicles caused an onboard fire during a voyage from California to Lithuania. The blaze forced the MSC Carlotta to divert to Mexico so damaged containers could be discharged, inspected and restowed.
Splash247 reported 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.
Fire and diversion
According to Splash247, 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.
Investigation: Tesla above Ford
MSC's complaint, as reported by Splash247, says 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.
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 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, Splash247 reported.
Shipper and operator implications
The case highlights the risks of loading used, damaged battery-powered vehicles into containers with wooden racking, and the importance of verifying that high-voltage batteries are disconnected and secured before a voyage. For freight forwarders and vessel operators, the incident underscores the need to check dangerous goods declarations and packing methods for second-hand EVs, particularly on long ocean legs such as the Transpacific route from California to Europe.
| Timeline | Event |
|---|---|
| August 2023 | Two CargoLoop containers loaded aboard MSC Carlotta with used EVs |
| September 2, 2023 | Explosion and fire break out off Baja California |
| Shortly after | Crew extinguishes blaze; ship diverts to Mexico |
| 2026 | MSC files suit against CargoLoop for ~$273,000 |
Watch list
- CargoLoop's public response: The company has not yet responded to the allegations, according to Splash247.
- Court outcome: The lawsuit's resolution could set a precedent for liability on EV fires in containers.
- Packing standards: Carriers may tighten acceptance rules for used battery-powered vehicles if similar racking failures surface.
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