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ASRS pose new fire risks for warehouses

With a global market expected to surpass USD 18.12 billion by 2032, automated storage and retrieval systems (ASRS) seem to be the way forward for retail, warehousing, and distribution companies looking to increase their storage density, throughput, and efficiency.
plastic boxes in the cells of the automated warehouse. Metal construction warehouse shelving
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By Nelson Choong , 

Vice President, Consulting Solutions, Marsh Advisory

11/24/2023 · 9-minute read

With a global market expected to surpass USD 18.12 billion by 2032, automated storage and retrieval systems (ASRS) seem to be the way forward for retail, warehousing, and distribution companies looking to increase their storage density, throughput, and efficiency. Spurred on by recent surges in popularity of ecommerce and omni-channel business models, companies may feel pressured to install ASRS to remain competitive with their peers. However, quick adoption of these systems might mean businesses are not fully aware of the property and operational risks associated with ASRS before they implement them.

In this piece, we will explore the property and operational risk exposures of ASRS, as well as what risk managers can do to help mitigate them.

What are ASRS?

As the name suggests, ASRS are automated systems designed to enable facilities to efficiently store and retrieve goods as needed. A variety of methods for automatically depositing and retrieving loads to and from defined storage locations fall under the heading of ASRS. These computer-controlled storage and retrieval systems may be wholly integrated into a business’s manufacturing and distribution process. Often replacing large areas of racking, these solutions can help businesses reduce labor costs, improve accuracy and storage capacity, and increase productivity.

What are the risks?

New technology invites new exposures

Regardless of type, ASRS introduce new ignition hazards to previously traditional warehouse environments. Components of these systems, such as robots, shuttles, batteries, cranes, and charging stations, may be susceptible to fire from many causes, including overheating, electrical arcing, collisions, and electrical faults. These fires can spread to areas outside of the ASRS, quickly overwhelming a building’s sprinkler system.

As an example, many ASRS robots and shuttles are powered by lithium-ion batteries, which can overheat, and due to a phenomenon called thermal runaway, catch fire and emit explosive gases. Lithium-ion battery fires are extremely hot and difficult to extinguish. Doing so requires specialized training, which local fire departments may not have received.

More risks by design

Additionally, the design of warehouses implementing ASRS can contribute to its fire risk. No longer needing to consider the safety and agility of human workers driving forklifts, automated warehouses tend to reduce the size of, or eliminate, aisles and minimize the spaces between container loads, both horizontally and vertically.

Products in these warehouses are often stored in open-topped, highly combustible plastic containers to facilitate order picking. Traditional sprinkler systems, including early suppression fast response sprinklers, may not be entirely effective at suppressing fires, as water may collect in and on the containers, preventing it from cascading to lower tiers of burning material. In addition, the density of the rack structure may not leave enough space to install in-rack sprinklers, which are likely required to ensure adequate automatic fire protection. Further, NFPA 13 — generally considered the authority on sprinkler system installation — offers minimal guidance on ASRS fire protection.

Even though sprinkler systems are crucial for controlling, suppressing, and extinguishing fires, fire department intervention is necessary to confirm final extinguishment. However, firefighters are often inexperienced with dealing with ASRS warehouse fires, and the narrow aisles and densely packed, incredibly tall shelving units may pose difficulties in quickly reaching the source of the fire and removing any smoldering components. This situation can become catastrophic, as embers can smolder for hours and reignite the fire, potentially burning down the building.

Because these systems are so dense, confirming final extinguishment can be extremely difficult. Depending on their ability to access the source of the fire, firefighters may opt to fight the fire defensively by seeking to contain it rather than trying to extinguish it. In practice, this likely means applying large volumes of water onto the fire from outside the building rather than risking firefighter lives by entering the warehouse.

Where there’s fire, there’s smoke and water

On top of fire damage, there will inevitably also be smoke damage, as well as water damage from attempts to extinguish the flames. Although the arrangement of ASRS warehouses increases storage density, it can increase the likelihood of a fire resulting in a total loss, which will also have devastating impacts on a business’s reputation and ability to serve its customers. Organizations recovering from an ASRS fire will inevitably have their regular business processes interrupted by loss of inventory, building damage, cleanup, and repairs, as well as delayed shipments.

How can risks be mitigated?

Given the above, it is crucial to incorporate fire mitigation strategies specific for ASRS into your risk management plan. These may fall under the following headings:

Sprinkler systems

Most existing warehouse sprinkler systems will require adaptations to effectively control and suppress ASRS fires. As your sprinkler system will need to be calibrated specifically for your set up and the ASRS you have chosen, warehouse managers should collaborate with fire protection specialists well versed in ASRS that can advise on appropriate solutions. Ensure an appropriate design standard is utilized, such as FM Global’s Data Sheet 8-34.

The optimized systems will likely include both ceiling and in-rack sprinkler arrangements, helping reduce fire suppression time as well as the possibility of fire spreading and triggering additional sprinklers. As extensive amounts of water may be used to suppress an ASRS fire, it is imperative to have a robust water supply that can provide the necessary water flows and pressures for which your sprinkler system is designed. It may also be necessary to have an efficient drainage system in order to reduce secondary water damage caused by extensive firefighting.

Do not use ASRS to store goods outside the parameters of the sprinkler system’s design. Typically, this includes especially flammable products, such as aerosols, ignitable liquids, and lithium-ion batteries. There are currently no prescriptive designs that exist today to protect these high hazard commodities within an ASRS.

Engage property risk engineers to help ensure that the system type and layouts you have chosen will be effective in controlling and possibly suppressing a fire event in your ASRS warehouse.

Fire department intervention

Warehouse managers need to have a realistic final fire extinguishment plan that stays within the physical limits of human firefighters. To achieve this, it is ideal to meet with your local fire department prior to finalizing plans for your ASRS facility. By including your local fire department early in the design process, they can advise on whether items such as mezzanines for access, hose reels, fixed water monitor nozzles, and other features are recommended.

For warehouses that have already installed an ASRS, risk managers should still give the fire department the opportunity to review your warehouse prior to an incident, as this allows it to familiarize itself with your goods and layout and enables you to opt for storage configurations within its capabilities. This process will also provide insight into how best to design your fire protection system and the extent of your fire risk exposure.

Be sure to undertake the fire department’s recommendations, including having any necessary equipment on hand to dismantle the system so that they can efficiently access the seat of the fire. Once they are complete, reconvene with the fire department to confirm adherence. Review your final fire extinguishment plan regularly with the fire department, and make updates as necessary, especially if site conditions change.

Containers

Both the type of container and their arrangement will have an effect on a warehouse’s fire exposure. Depending on the container type, fire protection specialists will provide different protection guidelines. Non-combustible containers are highly encouraged where possible.

Fire detection systems

Early detection of fire in ASRS facilities is critical in order to quickly shut down electrical systems and promptly notify the fire department. Therefore, it is often recommended that ASRS warehouse managers install very early warning fire detection (VEWFD) systems, which can alert you to fire before it is even visible to the naked eye. Managers should interlock electrical systems to their fire detection system so that they automatically shutdown when a fire is detected.

Electrical systems

Extinguishing ASRS warehouse fires can be immensely challenging. As such, it is prudent to take actions that minimize your property risk exposure by limiting potential ignition sources. Warehouse managers should follow the ASRS manufacturer’s recommended electrical maintenance program for all electrical components such as chargers, batteries, and contacts. You should also conduct regular infrared scanning of the ASRS while it is operational to detect any thermal anomalies.

Where feasible, relocate any electrical installations away from the area. Consider installing LED fixtures rather than fluorescent light tubes, as these have a lower ignition risk. As a further precaution, keep portable appliances, such as stereos, fans, and space heaters, at least two metres away from the ASRS.

Robots and shuttles

Any robots or shuttles used within the ASRS should have preprogramed safety measures designed to reduce the likelihood of initiating or exacerbating a fire. These fail-safes may include automatic shutdowns upon fire detection and automatic emergency breaking, among others.

The robots, shuttles, and charging ports should be inspected and maintained regularly. If any sign of wear or damage is detected, do not use until the item is replaced or repaired.

If the robots or shuttles use lithium-ion batteries, be sure to address the risk exposures associated with the batteries themselves. This process can include developing procedures to follow in the event of thermal runaway, a robust battery management system, and a battery replacement program.

Building construction

Especially for facilities where support from the local fire department may be lacking, warehouse managers should consider installing internal fire barriers and firewalls to segregate areas with ASRS. Insurance companies typically look favorably upon warehouses that install four-hour rated, non-load-bearing, parapeted firewalls. In addition, avoid using combustible insulation materials in ASRS warehouses.

What are my next steps?

Implementing an ASRS can be a costly enterprise, greatly increasing the value of your property as well as the time and the funds needed to repair or rebuild, should an accident occur. Additionally, although they greatly increase an organization’s efficiency, they also increase its business interruption and extra expense exposure. Differing from the experience with a traditional warehouse fire, when a company suffers the loss of an ASRS warehouse, it loses not only the physical assets contained within, but also loses the increased throughput capability made possible by the ASRS. Further, the loss of the ASRS will force the company to find workarounds to mitigate or reduce impact to its customers during the lengthy repairing or rebuilding process, likely resulting in extremely high incremental operating costs.

To best understand their facility’s unique fire exposure and build a robust risk management plan, warehouse managers should enlist the advice of property risk engineers. By having a comprehensive risk analysis conducted, warehouse managers can better assess potential property damage, business interruption, extra expense, and liability losses. Risk engineers will provide tailored recommendations on how to best mitigate your warehouse’s risks. Unlike fire protection specialists, who are mainly focused on meeting building and fire codes, which are largely driven by life safety, risk engineers will go a step beyond and assess the risk for protection of property as well.

Risk engineers can also help you develop a strong business continuity plan. With their assistance, you can better understand how exposed you are to business interruption losses, so you can be more resilient when faced with disaster. No matter in which stage you invite the risk engineers to your facility, they can help you determine which risk mitigation techniques will be the best fit for your warehouse and ASRS.

With a structured risk management framework, warehouse managers can better position themselves to understand and mitigate the risks associated with ASRS, which in turn helps them make their facilities safer and more reliable.

For more information on how you can protect your ASRS warehouse, contact your Marsh representative.

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Nelson Choong

Nelson Choong

Vice President, Consulting Solutions, Marsh Advisory

  • Canada

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