Tag Archives: ocean shipping

EV Fires and Shipping

There’s been a lot of news and notice recently about fires aboard ships. EVs and their batteries have been frequently blamed. What are the actual facts?

This podcast features a risk management specialist who works for a P&I firm – one that rates risks for insurance and may actually provide the insurance to cover risks such as fires.

I was fascinated to learn that the evidence is scarce for lithium batteries causing shipboard fires. And it seems that vehicles with internal combustion engines (ICE), which don’t have lithium batteries, are just as likely to cause fires as EVs. It’s a complex subject, and you would expect insurers to be more concerned if lithium batteries were a big problem. But that’s not so, from the evidence collected so far. And there are quite a few techniques that ship operators and shippers could take to reduce the risk of fires even more.

We have to condition the conclusion; often shipboard fires consume all the evidence of how the fire started. But this concern about EVs seems to be a red herring.

In Focus Podcast, 10/30/2025

Chinese buy cheaper Brazilian soybeans

The deal made with China and the US over trade included soybean purchases from the US. However it seems to have handed Chinese businesses an advantage in negotiating with Brazilian shippers of soybeans. Brazilian export prices eased up as a result of the announcement, providing an opening for large purchases from Brazil.

The so-called US-China agreement on soybeans has yet to be confirmed by the Chinese side, so we still don’t know if it’s real. But the leverage for China over Brazil’s soybean producers has increased for real, and will for a while. This may be a much larger advantage for China as a whole than decreasing tariffs for US soybeans later on will be.

Stockpiles of soybeans are growing in the US as the harvest ends, with many unsold beans. The door to China trade may not come quick enough for many farmers, causing a need to store longer. Chinese soybean consumers and may get a better deal from both parties.

Clever negotiating.

Reuters

https://gcaptain.com/chinese-buyers-purchase-brazilian-soybeans-as-prices-ease-over-us-china-trade-thaw/

Flag-Hopping is extreme

Ships are changing their flag registry much more often than they used to. Much of this is because the older ships are gravitating to the ‘dark’ or ‘shadow’ fleet, which specializes in avoiding sanctions.

Many of these newly popular flag states have few regulations and little power to provide oversight on the registered ships. That’s what some ship operators want.

In addition, changing flags frequently circumvents enforcement by anyone. The law of the sea is that each ship is nominally required to enforce the laws of its flag state. But some of the flag states have no relevant laws, or very weak ones, and provide no means of enforcement. And jumping flags means that even if some enforcement is tried, it will likely not apply to the vessel by the time the complaint is heard.

African states are frequent choices of shipowners who choose to use alternate flagging. Aside from Liberia, a major flag state, which has a robust governance, many African states use flagging as a revenue source with no actions required. This threatens safety, environmental disaster, and seafarer welfare. The chart below from Clarkson’s, obtained from the article linked below, shows how changes in African registry have ramped up.

The flag-jumping is connected to the fracture in the shipping world between those operators aligned with the EU, US and the West, and those aligned with Russia, to some extent China, and other sanctioned states such as Iran. It’s likely to continue as long as the fracture intensifies.

Management of shipping, safety on board and in port, and welfare of seafarers, is taking a back seat in the meantime.

Sam Chambers October 23, 2025

https://splash247.com/flag-hopping-hits-extreme-levels/