Pratik Bijlani –
The Kerala State Government has filed a $1.1 billion compensation claim against Mediterranean Shipping Company (MSC) following the sinking of MSC Elsa 3 off the Kerala coast in late May. The claim seeks $1 billion for environmental damage, $44 million for restoration efforts, and $61.3 million for economic losses suffered by the fishing community.
As part of the case, the Indian High Court has detained MSC Akiteta II, a 30,592 dwt container vessel docked at Vizhinjam port, as collateral until MSC posts a bond. The court has allowed the vessel to load and unload cargo but barred it from departing. The next hearing is scheduled for August 6.
MSC has challenged the Indian court’s jurisdiction, arguing that MSC Elsa 3 sank outside India’s territorial waters. “Even if the Supreme Court ultimately asserts jurisdiction, MSC maintains that the claim is grossly exaggerated,” company representatives said, noting that only a minor oil slick was observed and promptly removed. MSC’s defence contends the primary issue is plastic pellet spillage, of which 106.8 tonnes have already been recovered.
Indian authorities report broader impacts, including six large marine carcasses, suspected deaths due to microplastic exposure, and ongoing shoreline clean-up efforts that have recovered 450–500 tonnes of nurdles. Investigations are also probing potential safety lapses, including improper cargo handling and securing.
While initial salvage operations capped oil leaks, clean-up efforts are currently stalled as MSC transitions to a new salvage contractor, SMIT, which plans to begin operations in August to siphon fuel from the wreck.
The case underscores rising concerns over marine pollution and operational accountability in Indian waters as MSC Elsa 3’s sinking continues to draw global attention.
Marex Media