Eight months after the sinking of the MSC Elsa 3 off India’s coast, MSC Mediterranean Shipping Company has posted a bond with the Kerala High Court, allowing for the release of an MSC containership detained since July as part of the ongoing compensation claims. The Kerala state government is seeking over $1 billion, citing significant environmental damage from the incident that occurred approximately 13 nautical miles offshore. Efforts included a diving operation to seal leaking fuel tanks and recover containers that washed ashore.
MSC’s legal team argues that the state’s claims are excessive, estimating actual damages at around $15.1 million. The High Court had previously ordered the detention of the MSC Akiteta II at Vizhinjam port as collateral for the claim, requiring a cash bond for its release. MSC proposed a bank guarantee of about $136.3 million, while the government insisted on a cash deposit in an interest-bearing account for the claimants’ protection.
In December, the court accepted the bank guarantee, resulting in the release of the MSC Akiteta II, which had been held for over five months. The vessel is now navigating the Indian Ocean. Upcoming compensation hearings are scheduled for February 13, as MSC faces additional claims from local fishing communities citing financial losses due to the incident.
