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2025 July 9   14:32

Kerala sues MSC for $1.1 billion over MSC Elsa 3 oil spill

The state government of Kerala has filed a lawsuit against Mediterranean Shipping Co (MSC), seeking $1.1 billion in compensation for environmental and economic damages caused by the sinking of the containership MSC Elsa 3 off the southern Indian state in May.

The high court in Kerala issued an order on Monday directing port authorities to seize another MSC vessel, the 2,226 teu MSC Akiteta II, anchored at Vizhinjam Port, until MSC deposits securities for the claim amount.

The court specified that the order would not affect the loading and discharge of the vessel’s cargo. A further hearing is scheduled for July 10.

On May 25, MSC Elsa 3 capsized and sank approximately 38 nautical miles southwest of Kochi, India, after developing a 26° list. The incident resulted in the release of toxic cargo, including calcium carbide, into the Arabian Sea.

The Kerala government imposed a 20 nautical mile fishing ban around the wreck to mitigate potential pollution, according to casualty reports. The Admiralty suit cited extensive pollution from oil and cargo, as well as long-term ecological and economic impacts.

Kerala’s government stated that the sunken vessel carried 643 containers and is seeking compensation for environmental harm, clean-up costs, and economic losses to local fishermen.  

Last month, India raised concerns at the International Maritime Organization’s Maritime Safety Committee, urging container lines to take greater responsibility for incidents involving dangerous cargoes, following four incidents within three weeks, including MSC Elsa 3. “What is in a box cannot be a mystery anymore,” India’s delegate said.

Mediterranean Shipping Company, headquartered in Geneva, Switzerland, is one of the world’s largest container shipping companies. Founded in 1970 by Gianluigi Aponte, MSC operates a fleet of over 800 vessels and serves a global network of ports. 

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