Cargo Ship Sinking Sparks $560M Loss for EV Industry

On June 3, 2025, the Morning Midas, a cargo ship carrying 3,048 Chinese vehicles, including 750 electric vehicles (EVs) and hybrids, caught fire and sank 20 days later, costing the industry an estimated $560 million, according to the Anderson Economic Group. This incident, the third major EV-carrying ship loss in three years, highlights growing risks in EV shipping and raises urgent questions about safety and logistics for electric vehicle manufacturers and shippers.

Rising Costs of EV Shipping Disasters

The Morning Midas was transporting vehicles from Chinese automakers like Chery Automobile Co. and Great Wall Motor Co. to Mexique when smoke was spotted on its deck. The fire’s cause remains under investigation, but the financial toll is clear. Combined with the 2022 Felicity Ace and 2023 Fremantle sinkings, these incidents have racked up an estimated $1.8 billion in losses, as reported by the Anderson Economic Group. “This is a huge cost, and another blaring warning klaxon to the industry about the risks of shipping EVs in closed containers,” said Patrick Anderson, CEO of Anderson Economic Group.

These figures exclude additional expenses like environmental cleanup, medical costs, or replacing the ship itself, meaning the true impact could be even higher. For EV manufacturers, these losses strain budgets and disrupt supply chains, potentially delaying deliveries to markets like Mexico, where demand for affordable EVs is growing.

Technical Challenges in EV Shipping

EV batteries pose unique risks during transport. According to Capt. Randall Lund, senior marine risk consultant at Allianz Commercial, “When it comes to shipping EVs, there’s always the risk of fire, explosion or thermal runaway.” Even if an EV doesn’t start a fire, its battery can intensify one, making containment difficult. The Morning Midas carried 750 EVs and hybrids among its 3,048 vehicles, a significant portion that likely contributed to the fire’s severity.

Ship crews, often limited in size, lack the specialized training needed to handle EV fires. “They are not professional firefighters,” Lund noted. Most crews receive only basic firefighting training and may not even know where EVs are stored on board. This gap in expertise and resources complicates emergency responses, especially on massive cargo ships spanning hundreds of feet.

Proposed Solutions and Industry Shifts

To mitigate risks, experts suggest technical and logistical changes. Lund advocates for “better fire monitoring systems and increased spacing between EVs” to help control fires. For example, spacing EVs farther apart—potentially by several feet—could slow fire spread, though it would reduce the number of vehicles per ship. Lund also urged automakers to reconsider shipping practices, stating, “The industry needs to work with automakers to help them understand that maybe they can’t ship 400 EVs at one time.”

These changes could raise shipping costs, as fewer vehicles per trip mean higher per-unit expenses. For consumers, this might translate to pricier EVs, with base models from brands like Chery potentially increasing by hundreds of dollars. Regulatory bodies may also step in, mandating stricter safety standards for EV transport, which could reshape global shipping practices.

Perspectives d'avenir

The Morning Midas sinking underscores the EV industry’s vulnerability in its supply chain. With losses mounting—$560 million from this incident alone—automakers and shippers must balance efficiency with safety. Enhanced monitoring, better crew training, and revised cargo layouts are critical steps toward preventing future disasters. As the EV market expands, addressing these challenges will be essential to keep costs down and ensure timely deliveries for enthusiasts and buyers alike.

Photos courtesy of US Coast Guard.