Ruling on the "Felicity Ace": The Cause of the Fire Remains Unresolved, Challenges for Shipping Persist

  • Created by Dr. Nina Gräfin von Borries
  • News, ALL NEWS, NEWSLETTER

Major fires on vehicle carriers and container ships remain a key challenge for the shipping and insurance industries

In brief:  The case of the RoRo cargo vessel "Felicity Ace", which caught fire and subsequently sank, demonstrates just how difficult it is to prove the cause of a fire at sea in court. It also serves to remind us how difficult it is to bring such fires under control on board. While the cause of the fire remains unresolved in the case of the "Felicity Ace", the matter highlights the urgent need to modernize firefighting systems to address the risks associated with modern energy storage technologies.

 

Background

The Regional Court of Stuttgart dismissed a damages claim against Porsche AG in connection with the loss of the vessel (Judgment of 21 May 2026, File No. 26 O 30/23). The "Felicity Ace" caught fire in the Atlantic Ocean in February 2022 while transporting approximately 4,000 vehicles to the United States. Despite firefighting efforts lasting several days, the fire could not be brought under control. The vessel ultimately sank. The claimants, consisting of the shipowner and the marine hull insurers, argued that a lithium-ion battery installed in a Porsche Taycan had caused the fire. The court dismissed the claim, finding that there was insufficient proof.

In addition to the "Felicity Ace", some of the most notable large-scale fires involving vehicle carriers and container ships include the "Fremantle Highway" (2023) and the "Morning Midas" (2025).

 

New Cargoes, New Risks

As transportation increasingly relies on electricity, the global shipment of electric vehicles equipped with lithium-ion batteries is steadily increasing. In addition, battery systems, electronic devices, and many other products containing integrated energy storage systems are being transported in growing numbers.

The specific risks associated with such cargoes become particularly apparent in the event of a fire. Lithium-ion batteries may enter a so-called "Thermal Runaway" condition following physical damage or a technical defect. This results in an uncontrolled, self-accelerating reaction within the battery cells, generating extremely high temperatures and releasing significant quantities of flammable and toxic gases.

Unlike conventional fires, the primary challenge is not merely ignition itself but the dynamic nature of the self-sustaining chemical reactions occurring within the battery.

 

Are Vessels Prepared for Such Fires?

Many modern vessels are equipped with installed firefighting systems, mostly CO₂ extinguishing systems. These systems are designed to suppress fires by reducing the oxygen concentration within an enclosed space.

However, these systems are of little use when dealing with lithium-ion battery fires. The reason is that lithium-ion batteries produce their own oxygen as they burn and do not depend on oxygen from the surrounding environment. CO₂ therefore has no effect. The same applies to foam-based firefighting systems.

An additional challenge arises from the configuration of vehicle decks on RoRo and PCTC vessels. Vehicles on board are very densely stowed across multiple deck levels. As a result, a localized fire can spread rapidly, while access to individual fire sources remains severely restricted.

For years, numerous P&I Clubs and insurers have therefore emphasized that traditional firefighting concepts are inadequate to deal with such scenarios. Lithium-ion battery fires are often difficult to extinguish completely. Therefore, additional measures are required to prevent such fires from spreading to adjacent vehicles or cargo and to reduce further heating of battery cells. In practice, the primary objective frequently becomes controlling the fire through cooling and shielding measures while allowing the affected battery cells to burn out in a controlled manner. Among the solutions being discussed are high-pressure water mist systems, which can provide effective cooling while using comparatively small amounts of water and placing less strain on vessel stability. Early detection systems and adapted stowage concepts are also gaining increasing importance.

 

Why Could the Cause of the Fire on the "Felicity Ace" Not Be Proven?

The investigation of fires at sea is typically conducted by experts based on technical and factual evidence. This includes burn patterns, damaged components, data from monitoring and alarm systems, cargo and stowage plans, as well as witness statements from crew members.

Under German civil procedure law, the applicable standard of proof is particularly important. Pursuant to § 286 of the German Code of Civil Procedure ("Zivilprozessordnung") – as further defined by case law – causation giving rise to liability must be established “with the degree of certainty required in everyday life. A degree of certainty which does not completely exclude remaining doubts but silences them.” Purely theoretical possibilities or abstract alternative causes are insufficient to discharge the burden of proof unless supported by concrete factual indications.

In the case of the "Felicity Ace", meeting this evidentiary burden proved especially difficult. The vessel sank to a depth which made any technical examination of the wreck impossible. This rendered crucial evidence unavailable. In particular, it was no longer possible to obtain sufficient technical evidence to establish the original source of the fire and link it to a particular vehicle, battery, or any other individual source of ignition.

 

Conclusion

According to available data from motor vehicle insurers, electric vehicles do not catch fire more frequently than vehicles powered by internal combustion engines. However, when they do they exhibit different fire characteristics. In the event of a battery fire, lithium-ion batteries may undergo complex reactions accompanied by gas release, significantly complicating firefighting operations at sea and potentially exceeding the capabilities of conventional firefighting systems.

Moreover, lithium-ion batteries are no longer confined to electric vehicles. They are now found in smartphones, laptops, power tools, and countless other products. Consequently, the issue extends far beyond vehicle carriers and affects virtually every segment of the shipping industry. Today, few container ships operate without lithium-ion batteries somewhere on board.

Recent large-scale maritime fires demonstrate that, where such fires prove difficult to contain and result in the total loss of the vessel, subsequent investigations into the cause face considerable practical obstacles. When a vessel sinks following a fire, as occurred in the case of the "Felicity Ace", the origin of the fire may ultimately remain impossible to determine with certainty.

This leaves us with the growing challenge of safely transporting modern hazardous cargoes by sea and keeping the associated risks under control.

 

If you would like to discuss any issues arising out of this or similar cases, please contact Nina von Borries or your usual ERG contact.