A massive $1 billion in compensation has been requested. Five MSC ships were initially seized, one of which was detained for a month: decisions that, according to the company, threaten trade.

Nearly three months after the sinking of the MSC Elsa 3 container ship off the coast of India, the case is entering its decisive phase. While a complex operation to remove the fuel from aboard began at sea, the matter has escalated into a legal battle with claims for compensation that have led to the seizure of several of the company’s vessels.

At the time of the accident

According to reports at the time of the accident, the 184-meter-long vessel was carrying 640 containers, including 13 containing dangerous goods, and had a crew of 24, who fortunately were not injured. Initial estimates estimated 370 tons of fuel were aboard the vessel, but no immediate danger of an oil leak had been reported.

Kerala High Court attach MSC vessels 

Whereas the Kerala High Court continues to side with plaintiffs and attach MSC vessels as collateral for the growing number of claims. Twice this week, the court has ordered ships detained at the Vizhinjam Port pending a bond from MSC.

Thursday, August 14, was the latest court hearing after six separate admiralty claims were filed. According to the court papers, the suits allege that fishing nets, wire ropes, and other fishing material became entangled with debris from the MSC Elsa 3, which went down on May 25.

The court issued an interim order to detain the MSC Makoto II at the port pending a bond. At 23,722 dwt, it is a smaller vessel of the fleet registered in Panama with a capacity of 1,740 TEU, but it still interrupts operations. As of Friday night, August 15, the vessel was still docked in India.

Preventing an environmental disaster

The situation is now very different: the ship lies at a depth of 51 meters, and divers from Smit Salvage, the company commissioned by MSC, have begun saturation dives to pump out the estimated 450 tons of fuel on board, approximately 80 tons more than initially estimated. The operation, hampered by seasonal monsoons, is aimed at preventing an environmental disaster and is expected to last until September 25.

Adding to the complexity of the salvage effort is the fact that the shipping company is facing a real legal escalation, as the Indian state of Kerala, where the accident occurred, has demanded a massive compensation of one billion dollars. To ensure payment, the court has ordered the seizure of five MSC container ships transiting Indian ports.

 MSC Akiteta II

Although the four ships were released after posting bail, the MSC Akiteta II remained stuck in port for a month. The shipping company, maritime-executive.com reports, has argued in court that the Indian claims are jeopardizing trade and its supply chain, setting a precedent the industry cannot sustain.

Sri Lanka has also filed a separate claim for compensation due to debris and plastic pellets that have washed up on its shores hundreds of kilometers away.

MSC’s court filings

MSC’s court filings have said that due to the nature of the incident, it was unclear how many claims might be filed. It is part of the lawyers’ reasoning for combining the claims to stop the slow drip of continuing case filings. In addition to the claims in India,

Related : Attempts to rescue the MSC Baltic III ship that ran aground in Canada

Source : Agencies

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