An MSC containership, the MSC Akiteta II, has received a court-ordered reduction in the bond required for its release after being detained in India since early July. The ship was arrested during a routine port call as part of the compensation claims related to the sinking of the MSC Elsa 3 off the coast of Kerala in May. While MSC has asserted that the incident resulted in only a minor oil spill, reports indicate that around 100 containers and significant debris, including plastic beads, were released into the ocean.
Efforts to contain the environmental impact of the wreck have included capping fuel leaks and initiating a saturation diving operation to remove the remaining fuel from the vessel, which lies approximately 167 feet underwater. Environmental groups have raised alarms about the potential ecological damage in the southeastern Arabian Sea, citing disruptions to water quality and marine life.
The Kerala state government has filed claims exceeding $1 billion against MSC Mediterranean Shipping and the ship’s manager, covering environmental damages, cleanup costs, and economic losses for the local fishing community. The Kerala High Court has mandated that MSC post a bond for the ship’s release, but the company has resisted this requirement, arguing for a significantly lower liability of approximately $14.8 million and challenging the court’s jurisdiction.
On September 25, the court reduced the bond amount to around $140 million, while reserving the right for the state to submit further documentation that could increase the bond or lead to the detention of other MSC vessels. The MSC Akiteta II, built in 2002 and registered in Liberia, has been anchored at Vizhinjam Port for over 11 weeks, amid ongoing claims related to the MSC Elsa 3.
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