by The Sinking of the Morning Midas: Million-Dollar Losses for the Auto Industry
Off the coast of Alaska, the cargo ship Morning Midas sank, carrying over 3,000 vehicles from Chinese manufacturers, including GWM and Chery. On board were hundreds of hybrids and about 70 electric vehicles. The fire, which started on June 3rd, forced the crew to abandon the ship, and on June 23rd, the vessel finally sank.
According to preliminary estimates by Anderson Economic Group, the losses for the automotive industry could reach $559 million. This is already the third such incident in recent years – combined with previous accidents, about 11,000 vehicles worth over $1.8 billion have ended up at the bottom of the ocean.
Consequences of the Disaster
In addition to the direct cargo loss of $120 million, the incident has serious economic and environmental consequences. The US Coast Guard, port workers, and local residents have joined the cleanup efforts. Particular concern is raised by the potential environmental pollution due to the presence of electric vehicles with batteries on board.
Zodiac Maritime, the ship’s operator, reported that smoke was initially noticed on the deck with electric vehicles before the situation got out of control
Compared to previous similar incidents, the losses from the sinking of the Morning Midas appear smaller – the Felicity Ace and Fremantle Highway ships were carrying more expensive vehicles, leading to losses of $334.5 million and $302.6 million respectively. However, this disaster once again raises questions about the safety of maritime transport, especially when it comes to vehicles with electric power units.
