Maritime Accident at the Port of Long Beach
On September 9, 2025, a vessel named Mississippi at the Port of Long Beach experienced a maritime accident. Over 60 containers fell into the water, causing a major disaster. 📦🌊 Media outlets widely reported the incident, emphasizing its significance.
One notable detail was that some of the containers were booked by Amazon Global Logistics (AGL). This marked one of the first times a relatively new freight service like AGL faced such an accident. Typically, incidents like containers falling into the ocean due to storms or mishandling involve more established freight companies. However, this event was unique, and at David Ricardo, we witnessed it firsthand.
Impact on Spectrum Products
This story also involves one of our clients, Spectrum Products. During our weekly call, they mentioned receiving an email about the incident. We informed them about the accident and advised them to check their Bill of Lading (BOL) to confirm if their container was affected. Unfortunately, their container was indeed on the Mississippi. 🚢
Amazon did not confirm whether their containers were impacted. However, considering a vessel can carry anywhere from 3,500 to 5,000 containers, the scale of this incident is significant. This highlights the importance of maritime or cargo insurance, which many sellers overlook.
The Importance of Cargo Insurance
Our client was unaware they could purchase cargo insurance. Surprisingly, 60–75% of Amazon sellers or private labels do not invest in this protection. This leaves them vulnerable to risks like delays, carrier breakdowns, or accidents. Without insurance, there’s no way to recover losses. 💡
Some sellers mistakenly believe that Amazon Global Logistics will handle reimbursements through Seller Central. Unfortunately, this is not true. AGL operates as a freight company and does not own the carriers. Therefore, they are not responsible for reimbursements.
When using AGL, sellers receive an email asking if they want to purchase cargo insurance. If this step is skipped, their merchandise remains unprotected. Below is an example of the email AGL sends regarding insurance:
This is a crucial reminder for all sellers to prioritize protecting their goods. 🛡️
Incident Overview
According to reports, the Mississippi was coming from China with a full load of goods, including shoes, clothing, and electronics destined for major retailers like Costco, Target, Walmart, and smaller stores. The mishap occurred as crews began releasing the straps holding the containers, causing a domino effect.
Eyewitnesses captured video of the containers falling like dominoes, accompanied by a loud rumbling sound. Nearly 67 containers were lost, with some floating in the ocean and others sinking. Port police used boats and buoys to contain the floating containers.
Investigations and Recovery Efforts
Officials are investigating the cause of the accident. Some speculate a balancing issue with the ship’s ballast may have caused it to list, leading to the spill. Crews are now working to stabilize the ship and begin salvage operations.
A port worker with 35 years of experience stated he had never seen anything like this before. "One or two containers falling might be an accident, but this scale suggests a major error," he said.
A Wake-Up Call for Sellers
This incident serves as a wake-up call for sellers and logistics providers alike.
Ensuring proper insurance and understanding the risks involved in global shipping are essential for protecting your business.
Flexport Editorial Team
