ONE Henry Hudson Fire: what we learned about logistical risk and the importance of international cargo insurance

On November 21, 2025, the container vessel ONE Henry Hudson experienced a significant fire while berthed at the Port of Los Angeles. This incident halted operations at several terminals, mobilized emergency forces, and led to the declaration of General Average, affecting thousands of importers and exporters. 

Beyond the incident itself, this case illustrates how a single claim can compromise the entire global logistics chain, leaving businesses vulnerable if they lack adequate international Cargo Insurance. 

The fire originated in one of the vessel's cargo holds, generating a dense plume of smoke visible across a significant portion of the port. Operations were halted at four terminals, and an emergency command was activated, involving firefighters, the Coast Guard, and specialized hazardous materials teams. 

Although the fire was contained, the shipping line declared General Average, a legal mechanism in maritime commerce that obligates all cargo owners to share salvage costs, even if their cargo was not directly affected. To release their containers, importers were required to furnish guarantees, a process that can generate significant delays and expenses if not covered by marine cargo insurance with General Average coverage. 

1. Logistical Disruptions:
   Detained containers, customs delays, and supply chain complications.
2. Unforeseen Costs:
   Guarantee deposits, port storage, inspections, restowage. Without insurance, these expenses are borne directly by the cargo owner.
3. Reputational Risk:
   Companies operating with tight deadlines for product launches, promotions, or critical deliveries faced rescheduling and potential penalties.

• Misdeclared Dangerous Goods: such as lithium batteries or chemical substances. 
• Electrical or Mechanical Failures: short circuits, faulty reefer equipment. 
• Improper Stowage: when dangerous cargo is not positioned according to the guidelines of the IMDG Code (International Maritime Dangerous Goods Code), the risk of chemical reactions, fires, or uncontrolled spread of a casualty within the vessel increases. 
• Human Factors: errors in inspection, documentation, or handling. 

• Accurate declaration and verification of dangerous goods. 
• Preventive maintenance and structural monitoring. 
• Early fire detection systems in cargo holds. 
• Personnel training on specific risks, such as IMDG cargo. 
• Diversified logistics strategies, avoiding reliance on a single port. 

• Without insurance, even undamaged cargo can incur unexpected costs. 
• Relying on a single route or port constitutes an operational vulnerability. 
• Accurate declaration of dangerous goods is critical. 
• Risk management is not an expense; it is operational continuity. 
• A comprehensive policy prevents financial and reputational losses. 

The ONE Henry Hudson incident reinforces a key principle of international trade: no shipment is 100% risk-free. At Hanseatica, we design customized Cargo Insurance solutions, tailored to each type of operation, route, and commodity. We protect much more than your goods: we safeguard your capacity to deliver, expand, and sustain your operations. 

Are you confident that your current cargo coverage provides protection against this type of incident?

Contact us! We can help you assess your exposure and develop a customized prevention plan.