The World Shipping Council (WSC) is urging governments to review regulations that allow certain lithium battery shipments to move through supply chains without being formally identified as dangerous goods.

The WSC’s proposal comes amid rapid growth in lithium battery production and transportation, coupled with ongoing concerns about cargo fires at sea.

Data from the International Energy Agency shows the global lithium-ion battery market surpassed USD 150 billion in 2025, representing more than 20% growth compared to 2024. The agency also reported that global lithium-ion battery deployment in 2025 was six times higher than in 2020, with demand expected to double again by 2030.

A key focus of the WSC’s proposal is Special Provision 188 (SP188) within the International Maritime Dangerous Goods (IMDG) Code. Under current regulations, smaller lithium batteries that meet specific testing, packaging, and capacity requirements are exempt from certain dangerous goods declaration requirements. While the provision was designed to simplify the movement of lower-risk battery products, the WSC argues it can limit visibility into battery cargo moving through the supply chain, particularly when large quantities are consolidated within a single container.

 “Right now, a container can be packed with thousands of lithium batteries and still travel without being declared as dangerous goods,” said Joe Kramek, President and CEO of the World Shipping Council. “The SP188 exemption was intended to simplify the transport of individual devices with small batteries, not to make entire container loads invisible.”

The organization said lithium batteries can be transported safely when properly declared and managed. However, it argued that the risks increase when carriers, ports, vessel crews, and emergency responders are unaware that battery cargo is present.

“We know what can happen when hazards are invisible,” Kramek said. “Batteries shipped under the exemption have caused serious container fires, putting people, ports, ships and the marine environment at risk.”

According to splash247 reporting, the proposal has gained support from Germany, the Marshall Islands, the Netherlands, Singapore, and Thailand, along with several industry organizations.

The debate also highlights increasing regulatory scrutiny of dangerous goods transportation. As governments review safety requirements and carriers introduce additional controls, shippers are finding it increasingly challenging to keep pace with evolving compliance obligations.

“We are seeing more and more restrictions on hazardous cargo, both in terms from the IMDG, but also various carriers are coming out with their own house rules,” said Casper Alexandersen, Shipco’s Regional Manager for the U.S. West Coast. “It’s complex because it’s a very dynamic and fluid situation that is constantly unfolding.”

With requirements become more stringent and complex, many shippers and forwarders are seeking guidance on compliance and transportation options. “We’re seeing many (forwarder) customers turning to us for help in understanding these regulations, and also finding solutions that they can offer to their (shipper) customers,” Alexandersen added.

The industry’s heightened focus on lithium battery transportation is reflected in both safety data and carrier actions. According to the WSC, which cited Allianz data, container ship fires now occur approximately every 17 days. Concerns over these risks have contributed to stricter oversight across the supply chain, including last year’s decision by ocean carrier Matson to suspend electric vehicle shipments due to lithium-ion battery safety concerns.

Separately,a WSC report on cargo safety irregularities found that 11.39% of shipments inspected in 2024 contained safety-related deficiencies, including misdeclared cargo, improper packaging, and documentation errors.

Source: World Shipping Council, International Energy Agency, splash247, Shipco Transport