IV Rule 2b. Article IV rule 6 provides for the shipper’s indemnity in the case of dangerous goods, where that have been shipped without the carrier’s knowledge or consent.


A number of issues can arise with regard to unseaworthiness, including that: dangerous cargo can, of itself, make a vessel unseaworthy; faulty systems can make a vessel unseaworthy; and crew without proper training can make a vessel unseaworthy. Whether the carrier acted as a prudent owner can be a complex question because it may not be clear before or at the commencement of the voyage that a battery forming part of the cargo was defective and the carrier will not usually check on the contents of a container itself. Instead, it will rely on the documentation provided by the shipper. Nonetheless, in the context of unseaworthiness, hidden dangers are relevant.


As to the exercise of reasonable care in taking care of the cargo, given that the current regulatory regime for the carriage by sea of EVs and Li-ion batteries is arguably inadequate, complying with the regulations may


not be enough. Query whether a prudent owner should refuse to carry EVs/Li-ion batteries at all, although this may not be a realistic option given their increasing use and the continuing growth of the market.


Instead, a carrier may focus on ensuring it keeps up-to-date and complies with industry guidance, obtains expert risk assessments and establishes internal processes for identifying the contents of containers and where to stow EVs and Li-ion batteries. It has also been suggested that carriers should not allow onboard charging, although they will come under a lot of pressure from charterers/shippers if they do not. An owner may also wish to liaise with its P&I Club on appropriate measures to ensure that its cover remains in place.


The shipper’s liability for shipping dangerous goods without the carrier’s knowledge or consent is a strict one. However, the indemnity will not be engaged where the loss has been caused by the carrier’s failure to exercise due diligence. It is, therefore, in the shipper’s interest to provide all the relevant documentation and make the


66 | ISSUE 110 | DEC 2024 | THE REPORT


relevant declarations with regard to the cargo. This may minimise its exposure as to lack of carrier knowledge/consent and will allow the carrier to stow the goods appropriately and take any necessary precautionary measures.


COMMENT


It is to be hoped that Li-ion fire risks will reduce over time as manufacturers, carriers, and regulators address the current challenges. In the meantime, there is an ongoing debate in the maritime industry about whether there should be dedicated RoRo vessels for EVs. This is something that insurers say they would like to see.


Another future consideration is how the risks associated with the carriage of EVs and Li-ion batteries will be dealt with on autonomous ships. Where there are no, or few, human crew onboard, will this make it harder to fight any resulting fires? Technological advances in shipping are to be welcomed and are the way forward, but they do present the industry with novel challenges.


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