Container ship fires are no longer rare events — they are becoming a recurring reality, and misdeclared cargo is often at the centre of these incidents.
Despite years of increased awareness, misdeclared cargo remains a persistent and growing risk within global supply chains. According to the Allianz Safety & Shipping Review 2025, it remains one of the leading causes of container ship fires, highlighting a clear gap between industry knowledge and actual practice.
The scale of the issue is becoming more evident. Around 250 fire incidents were reported in 2024 alone, with a significant share involving container, cargo and ro-ro vessels. A notable proportion of serious onboard incidents is linked to misdeclared dangerous goods, often involving chemicals or lithium-ion batteries.
From an insurance perspective, misdeclared cargo is not simply a compliance issue — it is a structural risk. In practice, underwriters continue to rely heavily on documentation and cargo declarations, while pre-shipment verification remains limited. At the same time, insurers often react to losses after they occur, rather than influencing risk quality before shipment.
This highlights a gap between current insurance practices and what is required to effectively manage the risk.
Today, insurers typically:
- Rely on cargo declarations and standard documentation
- Apply general underwriting guidelines without deep cargo validation
- Address misdeclaration mainly at the claims stage
- Face challenges in recovery due to unclear liability or documentation gaps
However, reducing losses requires a more proactive approach.
Insurers can play a stronger role by:
- Enhancing underwriting questions and focusing on high-risk cargo profiles
- Promoting better cargo transparency and data validation
- Encouraging pre-shipment controls and risk surveys where appropriate
- Leveraging technology and data analytics to identify anomalies
- Strengthening collaboration with carriers, ports and logistics providers
The consequences of inaction are significant. Misdeclared cargo can lead to incorrect stowage, increased fire risk and complex claims scenarios. With the growing size of vessels, a single incident can result in substantial aggregation losses.
Ultimately, misdeclared cargo should be treated as a material insurance risk, not merely a compliance issue. Closing the gap between declared and actual cargo requires a shift from reactive claims handling to proactive risk management — a transition in which insurers have a central role to play.
