TT Talk - How to avoid catastrophic losses from warehouse fires

Warehouse fires are a significant risk to transport and logistics businesses, potentially causing catastrophic damage to people, property and the environment and significant disruption to the wider supply chain. Effective fire risk assessment and loss prevention plans are crucial to reduce these risks and ensure the safety and continuity of operations. This article looks at various ways to mitigate the risk of warehouse fires.
Understanding the risk
Warehouse fires can be caused by several factors, including faulty equipment, poor infrastructure and mishandling of cargo. While the frequency of large fires is relatively low, the consequences are typically high, and damage can be widespread. Fires can lead to smoke and fume damage, water damage from sprinkler systems, environmental damage and injuries to workers and firefighters.
While the frequency of large fires is relatively low, the consequences are typically high
According to the National Fire Protection Association, there were over 1,500 warehouse fires a year in the USA between 2018 and 2022. Operating equipment was the leading heat source in these fires, responsible for 44%. In terms of value, the cost of a large warehouse fire is typically measured in multiple millions of dollars.
Fire risk assessment
A fire risk assessment should be carried out or updated whenever there is a change in use or modification/refurbishment to the physical building. This fire risk assessment, with the basic elements shown below in Table 1 should be carried out by a suitably qualified and experienced individual/organisation with input from the facility user who understands the proposed operation, building construction type and the cargo / products to be stored.
1 | Identify fire hazard |
---|---|
2 | Identify people at risk |
3 | Evaluate, remove, reduce and protect from risk |
4 | Record, plan, inform and train |
5 | Review |
Table 1 - The basic fire safety risk assessment steps
TT Club would urge that a specialist local fire risk assessment service provider should be engaged if this expertise is not available in-house. However, from experience when changing the i) use, ii) internal layout, iii) cargo/products it is likely that this will necessitate changes to the fire safety measures such as sprinkler systems.
Equipment risk
Preventing warehouse fires through effective asset management is vital. Common causes of equipment fires include flammable materials making contact with high-temperature components and electrical short-circuits.
Regular preventative maintenance and pre-use checks are essential to identify potential risks. Additionally, fire suppression systems for lifting equipment, such as forklifts, can save lives and reduce severity of damage. As operations seek to become more sustainable and improve energy efficiency, many sites are implementing the use of lithium-ion battery powered equipment. While a sustainable solution, it is important to note that the use of lithium-ion batteries introduces unique risks, that should be duly considered as a component of the fire risk assessment.
Facilities and infrastructure risk
Effective management of facilities and infrastructure can significantly reduce the risk of warehouse fires. Physical barriers such as fire division walls, plus non-combustible protection for stair wells and roof vents, can help contain and control fires.
Building fire suppression systems, particularly sprinklers, are highly effective in controlling and extinguishing fires. Despite their proven value, many warehouses still do not have these systems, posing a significant risk to cargo and operations. Use of sprinklers and fire suppression is often opposed by warehouse customers who wrongly believe that the risk of damage to stored goods is greater where such systems are in place.
Cargo and stores risk
Proper management of cargo and stores is crucial in preventing warehouse fires. Handling and storing dangerous goods necessitate professional guidance and the following of manufacturers’ guidelines.
For example, stores of lithium batteries, commonly used in warehouse equipment, pose a significant fire risk and require careful management. Regular inspections and planning how to deal with damaged or end of life batteries can help prevent catastrophic fires.
There are many other cargoes that can give rise to fires and risk assessment will help to identify the greater risks. It is usually sensible to put these cargoes into separate warehouse compartments. Monitoring cargo storage spaces through technology such as thermal imaging cameras can spot the start of a fire at the earliest opportunity.
Monitoring cargo storage spaces through technology such as thermal imaging cameras can spot the start of a fire at the earliest opportunity.
Organisation and housekeeping
Maintaining a well-organised and clean warehouse environment can lower the risk of fire. Correctly storing chemicals, banning portable heaters and ensuring clear emergency exit routes are essential measures.
Charging stations for mechanical handling equipment should ideally be in segregated areas with fire division walls. Additionally, managing hot works and arson risks through contractor permits and thermal camera technology can further reduce fire risks.
Emergency response planning
Having a robust emergency response plan is critical in reducing the impact of warehouse fires. Regular testing of fire safety equipment, evacuation plans and communication strategies are essential parts of an effective emergency response plan.
Establishing good relationships with local emergency services, neighbouring sites and customers can ensure a coordinated and efficient response during emergencies. For example, working with the local fire department will help the firefighters to develop an understanding of the facility, the equipment used, how to navigate the site, how many people are likely to be on site and the types of cargo typically stored.
Conclusion
Warehouse fires can have devastating consequences for people, property and the environment, but with effective risk and loss prevention strategies, warehouse operators can reduce these risks and protect against losses.
Regular maintenance, proper management of facilities and cargo, and a well-organised warehouse environment are all key to preventing fires. Additionally, having a strong emergency response plan can ensure a quick and coordinated response, minimising the impact of any fires that occur.
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If you would like further information, or have any comments, please email us, or take this opportunity to forward to any others who you may feel would be interested.
- Author
- Josh Finch
- Date
- 08/04/2025