Six fire engines from Preesall, Lancaster, Bispham, Bolton-le-Sands, Fulwood rushed to the scene in Gulf Lane at around 6.35am.
An aerial ladder platform from Morecambe was also mobilised to battle to blaze.
Firefighters equipped with four breathing apparatus have used two hose reels and a 45mm jet to douse the flames.
No injuries have been reported but residents have been advised to keep their windows and doors closed due to the smoke.
Police have confirmed Gulf Lane will remain closed for the next two days due to the fire.
A spokesman for Lancashire Police said: "Gulf Lane at Cockerham will be closed at both ends for the next two days - this is due to a fire, no one is injured, it just might take some time to make it safe.
"The A588 remains open. We don't anticipate any issues with smoke nearby. We'll keep you posted if this changes."
More to follow...
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