19 August 2026
Executive Summary
A mobile phone, laptop, cordless tool, medical device or piece of electronic equipment may look like ordinary cargo.
The lithium battery inside it can make the shipment considerably more complicated.
The UK Civil Aviation Authority is warning that lithium-battery incidents involving overheating or malfunctioning devices are now occurring at around two per week, while reports nearly doubled between 2024 and 2025. Cases involving lithium-powered devices incorrectly packed in checked baggage rose by 91% in 2025.
For commercial cargo, the CAA separately warns that international incidents have frequently involved batteries that were incorrectly packed, marked or labelled, or consignments that were misdeclared or completely undeclared.
IATA identifies undeclared dangerous goods and lithium-battery misuse as important emerging air-cargo safety risks.
The wider commercial lesson is important:
A company may not think it ships dangerous goods because dangerous goods are only one component inside the product it sells.
UK Impact
This matters to far more UK businesses than specialist battery manufacturers.
Lithium batteries are embedded in products including:
- Mobile phones.
- Laptops and tablets.
- Power tools.
- Cameras.
- Drones.
- Medical equipment.
- Tracking devices.
- Sensors.
- Electric bicycles.
- Portable power equipment.
- Industrial electronics.
IATA confirms that electronic equipment containing lithium batteries can fall within dangerous-goods requirements, even though particular exemptions may apply depending upon the battery, equipment and method of shipment.
That makes accurate classification critical.
A procurement department may buy an electronic product.
A warehouse may see a box of equipment.
A freight department may therefore book it as general cargo.
But aviation regulations may see something quite different.
Global Impact
The risk becomes more complicated because modern supply chains increasingly contain battery-powered tracking and monitoring devices themselves.
Temperature loggers, cargo trackers and other electronic devices may travel inside another shipment, meaning companies need to understand whether those devices also fall within applicable dangerous-goods provisions. IATA’s 2026 lithium-battery guidance specifically addresses battery-powered temperature and data loggers used in pharmaceutical and perishable cargo.
The CAA has also introduced new lithium-battery and power-bank provisions following changes to ICAO’s Technical Instructions effective from 27 March 2026.
This means compliance cannot simply rely upon a shipping procedure written several years ago.
Our View
Businesses should identify hidden battery exposure throughout their logistics network.
Companies should ask:
- Which products contain lithium batteries?
- Are batteries removable or built into equipment?
- Who determines the correct dangerous-goods classification?
- Are batteries sourced from approved manufacturers?
- Can suppliers provide evidence of required testing?
- Are warehouse staff trained to recognise battery-containing products?
- Are third-party logistics providers told explicitly what the shipment contains?
- Could returned or damaged equipment present a greater risk than new stock?
- Do cargo insurers know how the goods are being transported?
- Are battery-powered tracking devices themselves compliant?
- Have shipping procedures been updated for current regulations?
The important lesson is that dangerous goods do not always arrive in drums bearing warning labels.
Sometimes they arrive looking like perfectly ordinary electronics.
Risk Indicator: ELEVATED
Does This Risk Affect Your Business?
Invictus Risk Solutions helps businesses find practical solutions to insurance, risk and commercial challenges.
From individual businesses to major international organisations, risk is our business.
TALK TO INVICTUS →Disclaimer
The information contained within these Market Alerts is provided for general market awareness and informational purposes only. It does not constitute financial, legal, investment, regulatory or insurance advice. Whilst every effort has been made to ensure accuracy at the time of publication using multiple reputable and independently verified sources, geopolitical events, legislation, regulation and market conditions may change rapidly. Readers should obtain appropriate professional advice before acting upon any information contained herein.
Invictus Risk Solutions LLP – Helping organisations stay ahead of emerging risks through informed insight and independent analysis.