Almost $5 Million of Cotton Destroyed in Warehouse Fire

By Jim.Robinson|January 13, 2011

A fire in a cotton warehouse in Lubbock, Texas destroyed 10,000 to 15,000 bales of mote cotton valued at more than $4.5 million, according to an article published on LubbockOnline.com. Mote cotton is a cotton gin byproduct used in non-woven materials.

Workers at Fiber Brite Ltd., where the fire occurred, will bury the burned bales in a large pit once insurance adjustors have completed their work, the article adds. A spokesman for the Wilson (Texas) Fire Department said that the fire was likely caused by static electricity or a hot bale that had recently been placed in the warehouse.

It’s an unfortunate occurrence, but should serve as a reminder to all cotton professionals that they need to take precautions when warehousing and shipping cotton. For example, Ted Rekerdres of Rekerdres & Sons Insurance recommends that merchants insist that their bales are split up and stored in several different warehouses, even when all of those warehouses are at a single location. This way, a fire can’t destroy more than a portion of your total shipment, and you won’t exceed the per-building loss limit–a very real possibility, given the unusually high price of cotton in today’s market.

For more tips on how to properly insure your cotton, be sure to look for Rekerdres’ article in the soon-to-be released 2011 Cotton International Annual edition.