Mediterranean Shipping Co (MSC) has filed a lawsuit against US vehicle logistics specialist CargoLoop, seeking approximately $273,000 in damages. The Swiss-based carrier alleges that improperly secured electric vehicles supplied by CargoLoop caused an onboard fire during a voyage from California to Lithuania.

The dispute centres on two 40-foot high-cube containers provided by CargoLoop, both loaded with used, previously damaged battery-powered vehicles aboard the container ship MSC Carlotta in August 2023. Cargo documents identified the vehicles' ages and their dangerous goods classification, and MSC accepted the shipment accordingly. CargoLoop packed the vehicles using wooden racks inside the containers, arranging at least one vehicle in a stacked position above another.

MSC alleges that an explosion and subsequent fire broke out in one of the containers while the vessel was sailing off the coast of Baja California in the early hours of September 2, 2023. The blaze then spread to a second CargoLoop container also carrying electric vehicles. Several surrounding containers sustained damage from the fire itself or from water used during firefighting operations.

The crew successfully extinguished the blaze, but the ship was forced to divert to Mexico so that the damaged containers could be discharged, inspected, and restowed.

According to MSC's complaint, investigators traced the likely origin of the fire to an area of the container where a 2018 Tesla Model S had been positioned above a 2012 Ford Focus. MSC claims that the wooden racking may have failed during the voyage, causing the Tesla to collapse onto the Ford and potentially damage a battery pack. The carrier further noted that similar racking failure was discovered in another CargoLoop container on the same sailing.

MSC has also put forward alternative explanations, alleging that the vehicle batteries may have been damaged during forklift handling, or that required safety precautions — including the disconnection of vehicle batteries — were not properly followed.

The case adds to broader concerns across the maritime industry about the fire risks associated with transporting electric vehicles, whose lithium-ion batteries can enter thermal runaway — a self-sustaining reaction that is difficult to suppress with conventional shipboard firefighting systems. The 2022 loss of the car carrier Felicity Ace, which sank with thousands of vehicles including EVs after a fire, intensified scrutiny of how battery-powered cars are stowed and handled at sea. The International Maritime Organization's Sub-Committee on Carriage of Cargoes and Containers has been reviewing guidelines for the transport of vehicles powered by lithium batteries, including proposals for tighter state-of-charge limits and improved detection in cargo holds. Incidents involving used or damaged EVs present particular challenges, as prior impact damage can compromise battery integrity in ways that are not always visible during loading.

CargoLoop has yet to respond publicly to the allegations.