Hidden cargo risks: Lithium batteries

9. June 2026

Jorge Pecci, VP of Commercial Services, NCB an IUMI Professional Partner

Global trade has never been more efficient – or more exposed. As container vessels continue to grow in size and capacity, the margin for error narrows dramatically, particularly when it comes to misdeclared and undeclared dangerous goods. What was once viewed as an operational concern has evolved into a systemic vulnerability embedded within global logistics.

At the center of this growing threat is lithium battery cargo, including shipments unrelated to electric vehicles. Consumer electronics, e-bikes, power tools, medical devices and energy storage systems now move across oceans in enormous volumes, often consolidated in mixed cargo containers and handled by shippers with limited dangerous goods expertise. These shipments are increasingly linked to cargo misdeclaration cases and major vessel fires.

Lithium batteries present a uniquely dangerous risk profile. Once thermal runaway occurs, the reaction can become self-sustaining, generating intense heat, toxic gases and repeated reignition. Conventional firefighting systems onboard containerships were never designed to control these fires deep within densely packed container stacks.

The danger becomes even greater with used, damaged or end-of-life batteries. These units frequently move through secondary markets, recycling streams and informal logistics channels where compliance standards are inconsistent. Internal degradation, hidden structural damage and improper charge conditions significantly increase the likelihood of failure. Yet many shipments are casually declared as “used electronics” “returns” or “scrap” masking cargo that may require specialised packaging or transport restrictions under the IMDG Code.

The scale of modern containerships magnifies the consequences. Cargo values can exceed billions of dollars on a single voyage, while fires several tiers below deck can quickly overwhelm crews and onboard suppression systems. Once ignition takes hold, response options become extremely limited.

Data confirms the structural nature of the problem. NCB (National Cargo Bureau) inspections have identified failure rates exceeding 55%, rising to nearly 70% for dangerous goods US imports. A significant portion involves lithium batteries (new and used) found improperly declared, packaged, or completely undeclared.

The consequences extend far beyond cargo loss. A single misdeclared lithium battery shipment can trigger catastrophic fires, threaten lives, disrupt global trade and create multi-billion-dollar losses. These are no longer isolated compliance failures, but a growing systemic threat to maritime safety and supply chain resilience.

This is where technology-driven prevention becomes critical. NCB Hazcheck products provide an important layer of defense by using data analytics and cargo profiling to identify misdeclared or suspicious shipments before loading. By screening cargo descriptions, keywords, and booking data, the system helps the supply chain ecosystem detect undeclared dangerous goods, including concealed lithium battery cargoes, early in the process before they become shipboard emergencies.