Matson Suspends EV Shipments Due to Lithium Battery Fire Concerns.

US shipping company Matson has suspended all electric vehicle shipments due to lithium-ion battery fire concerns following a recent incident involving the Morning Midas, a RoRo carrier that erupted in flames and sank in the Pacific. The new policy, effective immediately, impacts trade routes across the US mainland, Hawaii, Alaska, and Guam. Matson plans to resume shipping EVs when appropriate safety solutions are in place.

US shipping company Matson Inc. has suspended all shipments of electric vehicles (EVs), plug-in hybrids, and hybrids to and from Guam and other Pacific islands due to growing safety concerns over lithium-ion battery fires at sea. The decision, effective immediately, impacts trade routes across the US mainland, Hawaii, Alaska, and Guam [1].

Matson's announcement follows a recent incident involving the Morning Midas, a roll-on/roll-off (RoRo) carrier that erupted in flames and sank in the Pacific, carrying EVs and hybrids. The company cited the hazardous material classification of lithium-ion batteries as the primary reason for the suspension [2].

The suspension applies to both new and used vehicles and will remain in effect until comprehensive safety procedures are in place. Guam's leading auto dealer, Atkins Kroll, confirmed the move, leaving the island's EV supply chain facing new uncertainty [1].

Atkins Kroll's business development director, Ernie Galito, expressed disappointment with the decision but remains optimistic about Guam's EV market potential. He noted that Guam's short driving distances and lack of long-distance travel make it well-suited for electric vehicles [1].

The suspension may also impact military relocations, raising questions about how service members will transport personal EVs to Guam under the current restrictions. Guam has multiple EV charging stations, and the EV infrastructure is expected to grow despite Matson's shipping suspension [1].

Galito stated that Atkins Kroll intends to maintain its EV inventory by turning to alternative shipping routes, including direct shipments from Japan. He believes that the market for EVs in Guam is still developing and that the island is behind mainland trends due to its isolation [1].

Matson's decision appears to be a precautionary move as the company evaluates future safety measures for transporting lithium-ion batteries by sea. The company continues to transport conventional cars and offers interisland barge services in Hawaii [2].

Traditional vehicles continue to dominate Guam's local automobile market, with pickup trucks being a staple. Galito confirmed that EVs will continue to arrive through alternative channels beyond Matson [1].

The Chamber of Commerce in Guam is pushing for a reduction in the gross receipts tax to support local businesses. Galito believes that Matson's pause will have minimal financial impact on the market for BMW EVs, which are not as price-sensitive as first-time car buyers [1].

Atkins Kroll remains committed to growing the EV market in Guam. Galito stated that the company will continue to support the EV market with infrastructure and alternative shipping routes [1].

References:
[1] https://www.guampdn.com/news/matson-halts-shipping-electric-vehicles-to-guam-over-fire-risk/article_b224d033-f96d-4ad1-963d-d20d121f65a8.html
[2] https://maritime-executive.com/article/matson-suspends-shipping-evs-citing-hazards-of-lithium-ion-batteries