A cargo ship full of luxury cars is on fire and adrift in the middle of the Atlantic
By Jennifer Korn, CNN
An abandoned cargo ship packed with cars is adrift in the Atlantic Ocean, after a rapidly-spreading fire on board forced the crew to escape.
The 656 foot-long Felicity Ace roll-on/roll-off car-carrying ship caught fire in the North Atlantic on Wednesday as it carried cargo, including Porsches and Volkswagens, from Emden, Germany to Davisville, Rhode Island. At the time of the fire’s outbreak, the ship was sailing 90 nautical miles southwest of Portugal’s Azores, according to a statement on Wednesday by the Portuguese Navy.
After the fire broke out in the cargo hold, it spread and forced all 22 crew members to abandon ship. According to another statement by the Portuguese Navy, the crew was safely picked up and taken to a local hotel, with the rescue coordinated by the Ponta Delgada Maritime Search and Rescue Coordination Center. There has been no noticeable source of pollution from the fire, according to the statement.
The ship’s owners have arranged for a tow as it continues to burn. Registered to Panama, the Felicity Alice is operated by Japanese shipping line Mitsui O.S.K. Lines (MOL). MOL has not responded to request for comment.
Porsche confirmed to CNN Business that a number of its cars were among the cargo and that customers with cars on board the burning ship are being contacted by their dealers.
“While it remains too early to confirm what occurred and next steps, we are — along with our colleagues at Porsche AG — supporting our customers and our dealers as best we can to find solutions,” said Angus Fitton, Vice President of PR at Porsche Cars North America. “We are in contact with the shipping company and the details of the cars on board are now known.”
Expectant Porsche owners with cars on board like journalist and host Matt Farah, who said he had a 2022 Porsche Boxster Spyder awaiting delivery, have already started receiving word from dealerships about the status of their vehicles.
“The dealer confirmed that my car, along with at least a dozen other vehicles they were expecting, is on that boat,” Farah said. “They had no further information for me beyond confirming my car was on the boat, and said that as soon as Porsche Cars North America has a plan of any kind with how to proceed, that they would share the plans with me.”
Volkswagen also has customers awaiting vehicles on the burning cargo ship. “We are aware of an incident involving a third-party cargo ship transporting Volkswagen Group vehicles across the Atlantic. The vessel was on its way to North America,” said Dirk Ameer, a Volkswagen spokesperson. “At this time, we are not aware of any injuries. We are in contact with the shipping company to get more information about the incident.”
The Felicity Ace can carry over 17,000 metric tons of cargo, according to the Associated Press, with possibly thousands of cars on board. The Portuguese Navy said that as of Thursday, the fire is ongoing, and an ocean patrol vessel remains on site to monitor the abandoned ship.
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A cargo ship full of luxury cars is on fire and adrift in the middle of the Atlantic
Underwood Archives // Getty Images
Supply chain issues have been dominant in the news in 2021. Major issues with the timely delivery of parts across the world have spelled trouble for a number of industries, and the auto industry is no exception. Auto supply shortages are the result of a number of factors, including shortages of semiconductor chips and other necessary car parts. But this is far from the first time external factors and events have created trouble for the auto industry. Indeed, since the auto industry found its footing with the development and sale of consumer vehicles in the 1910s, events like wars and labor strikes have impacted the industry’s ability to produce and deliver cars for consumers. In some cases, the development of new techniques and management styles has increased efficiency and reduced waste with auto manufacturers in some cases and caused plants to shut down in others.
researched seven auto supply shortage events that happened in car history, using information from news articles and historical journals. Read on to understand how the history of the auto industry is connected to history more broadly.
Underwood Archives // Getty Images
Supply chain issues have been dominant in the news in 2021. Major issues with the timely delivery of parts across the world have spelled trouble for a number of industries, and the auto industry is no exception. Auto supply shortages are the result of a number of factors, including shortages of semiconductor chips and other necessary car parts. But this is far from the first time external factors and events have created trouble for the auto industry. Indeed, since the auto industry found its footing with the development and sale of consumer vehicles in the 1910s, events like wars and labor strikes have impacted the industry’s ability to produce and deliver cars for consumers. In some cases, the development of new techniques and management styles has increased efficiency and reduced waste with auto manufacturers in some cases and caused plants to shut down in others.
researched seven auto supply shortage events that happened in car history, using information from news articles and historical journals. Read on to understand how the history of the auto industry is connected to history more broadly.
A cargo ship full of luxury cars is on fire and adrift in the middle of the Atlantic
Universal History Archive/Universal Images Group // Getty Images
In the 1910s, auto manufacturing plants in Detroit sought to hire European immigrants to work in the factories. Detroit was one of the major manufacturing hubs for cars in the 20th century. Ford primarily hired for "unskilled" labor to work in the factories, and by 1914,
were immigrants, who earned less than their American-born neighbors in Detroit. This created a divide among working-class Americans, elevating the status of English-speaking Americans while immigrants were expected to perform "unskilled," blue-collar work. Henry Ford said of his workers in the 1910s: "The most wretched class was composed of foreign workmen, ignorant, and unskilled labor, most of them unable to speak English." Recruitment officers were sent to Ellis Island—an immigration hub into the United States—to recruit foreign-born workers to their factories. Polish and Italian immigrants, in particular, entered car factories in record numbers. During this same time, Detroit saw an influx of
, some looking to work in the auto industry, but Ford still primarily relied on immigrant labor.
Universal History Archive/Universal Images Group // Getty Images
In the 1910s, auto manufacturing plants in Detroit sought to hire European immigrants to work in the factories. Detroit was one of the major manufacturing hubs for cars in the 20th century. Ford primarily hired for "unskilled" labor to work in the factories, and by 1914,
were immigrants, who earned less than their American-born neighbors in Detroit. This created a divide among working-class Americans, elevating the status of English-speaking Americans while immigrants were expected to perform "unskilled," blue-collar work. Henry Ford said of his workers in the 1910s: "The most wretched class was composed of foreign workmen, ignorant, and unskilled labor, most of them unable to speak English." Recruitment officers were sent to Ellis Island—an immigration hub into the United States—to recruit foreign-born workers to their factories. Polish and Italian immigrants, in particular, entered car factories in record numbers. During this same time, Detroit saw an influx of
A cargo ship full of luxury cars is on fire and adrift in the middle of the Atlantic
Charles Phelps Cushing/ClassicStock // Getty Images
During World War II, Franklin D. Roosevelt established the War Production Board in 1942. The board regulated the production of materials that might be used for war. This included automobiles and fuel. The war, therefore, halted the production of new cars in the United States. The existing stockpile at the time the proclamation was issued was
. These cars were rationed out to dealers and then customers throughout the duration of the war.
Charles Phelps Cushing/ClassicStock // Getty Images
During World War II, Franklin D. Roosevelt established the War Production Board in 1942. The board regulated the production of materials that might be used for war. This included automobiles and fuel. The war, therefore, halted the production of new cars in the United States. The existing stockpile at the time the proclamation was issued was
A cargo ship full of luxury cars is on fire and adrift in the middle of the Atlantic
Three Lions // Getty Images
In the 1950s, Japanese automakers at Toyota invented the concept of “just-in-time” manufacturing to reduce waste and increase efficiency. This was particularly important in Japan, where post-war austerity impacted the capacities of consumers and factories alike. To improve production capabilities without raising costs,
. The first was eliminating waste, which was defined as anything that did not benefit the consumer. The second was to not stockpile parts required to make cars until right before they were needed, meaning the company did not need to spend excess capital. This allowed Japanese automakers to compete with American manufacturers despite having disadvantages in their larger economy. While this gave Toyota a competitive edge, this method can lead to inconsistent work for auto employees. The just-in-time method has since been adopted elsewhere around the world, the U.S. included, which has led to a dependence on independent contractors and temporary work agreements. In the U.S., this disqualifies employees from benefits such as paid time off and health insurance.
Three Lions // Getty Images
In the 1950s, Japanese automakers at Toyota invented the concept of “just-in-time” manufacturing to reduce waste and increase efficiency. This was particularly important in Japan, where post-war austerity impacted the capacities of consumers and factories alike. To improve production capabilities without raising costs,
. The first was eliminating waste, which was defined as anything that did not benefit the consumer. The second was to not stockpile parts required to make cars until right before they were needed, meaning the company did not need to spend excess capital. This allowed Japanese automakers to compete with American manufacturers despite having disadvantages in their larger economy. While this gave Toyota a competitive edge, this method can lead to inconsistent work for auto employees. The just-in-time method has since been adopted elsewhere around the world, the U.S. included, which has led to a dependence on independent contractors and temporary work agreements. In the U.S., this disqualifies employees from benefits such as paid time off and health insurance.
A cargo ship full of luxury cars is on fire and adrift in the middle of the Atlantic
Bettmann // Getty Images
During the Korean War, President Harry Truman enacted price controls on various wartime industries. This included steel and labor, with wage increases being limited. Steel unions in particular were upset with the cap on their earnings. As such, steel union workers went on strike in 1952, which limited the production of automobiles along with other goods. The strike
, with President Truman issuing an executive order to break the strike, and steelworkers suing, claiming that the executive order was unconstitutional. The Supreme Court determined the president cannot seize private companies and convert them to public. Workers then struck for 53 days, leading to a wage increase and settling on terms proposed by the union several months prior.
Bettmann // Getty Images
During the Korean War, President Harry Truman enacted price controls on various wartime industries. This included steel and labor, with wage increases being limited. Steel unions in particular were upset with the cap on their earnings. As such, steel union workers went on strike in 1952, which limited the production of automobiles along with other goods. The strike
, with President Truman issuing an executive order to break the strike, and steelworkers suing, claiming that the executive order was unconstitutional. The Supreme Court determined the president cannot seize private companies and convert them to public. Workers then struck for 53 days, leading to a wage increase and settling on terms proposed by the union several months prior.
A cargo ship full of luxury cars is on fire and adrift in the middle of the Atlantic
Boris Spremo/Toronto Star // Getty Images
A shortage of multiple types of auto parts contributed to an auto shortage in 1984. The problems were exacerbated by plant shutdowns. General Motors, for example, shut its entire plant down for two weeks due to a lack of “quality parts.”
also struck, closing down several key plants. Unionized General Motors employees sought better job security as their highest priority, following the company outsourcing production and massive layoffs during the 1980–82 recession. Borrowing from the success of the Japanese “just-in-time” model, many American factories adopted the model, which eliminated the need for storage. In turn, this new model proved precarious for workers, diminishing job security for employees who were needed on a less consistent basis.
Boris Spremo/Toronto Star // Getty Images
A shortage of multiple types of auto parts contributed to an auto shortage in 1984. The problems were exacerbated by plant shutdowns. General Motors, for example, shut its entire plant down for two weeks due to a lack of “quality parts.”
also struck, closing down several key plants. Unionized General Motors employees sought better job security as their highest priority, following the company outsourcing production and massive layoffs during the 1980–82 recession. Borrowing from the success of the Japanese “just-in-time” model, many American factories adopted the model, which eliminated the need for storage. In turn, this new model proved precarious for workers, diminishing job security for employees who were needed on a less consistent basis.
A cargo ship full of luxury cars is on fire and adrift in the middle of the Atlantic
Bill Pugliano // Getty Images
Silicon is a primary ingredient in semiconductor chips. Semiconductor chips are used in a vast array of technology, including cars. A major silicon shortage is crippling the chip industry, which is, in turn, hurting auto production.
, including silicon, are often shipped from Japan and Mexico and made in Taiwan and China. The COVID-19 pandemic shut plants down across the world while the demand for chips increased with the emergence of remote working and learning.
Bill Pugliano // Getty Images
Silicon is a primary ingredient in semiconductor chips. Semiconductor chips are used in a vast array of technology, including cars. A major silicon shortage is crippling the chip industry, which is, in turn, hurting auto production.
, including silicon, are often shipped from Japan and Mexico and made in Taiwan and China. The COVID-19 pandemic shut plants down across the world while the demand for chips increased with the emergence of remote working and learning.
A cargo ship full of luxury cars is on fire and adrift in the middle of the Atlantic
Shen Chunchen/VCG // Getty Images
Electric cars are becoming increasingly common. Electric cars require nickel to produce their batteries, and experts are warning that a nickel shortage could slow the production of electric vehicles by 2026. If demand for nickel
, prices for the material could rise. This could lead to the price of electric cars rising by at least several thousand dollars. In turn, this might suppress demand for electric vehicles, as fewer consumers could afford them.
This story originally appeared on CoPilot and was produced and distributed in partnership with Stacker Studio.
Shen Chunchen/VCG // Getty Images
Electric cars are becoming increasingly common. Electric cars require nickel to produce their batteries, and experts are warning that a nickel shortage could slow the production of electric vehicles by 2026. If demand for nickel
, prices for the material could rise. This could lead to the price of electric cars rising by at least several thousand dollars. In turn, this might suppress demand for electric vehicles, as fewer consumers could afford them.
This story originally appeared on CoPilot and was produced and distributed in partnership with Stacker Studio.
Underwood Archives // Getty Images