Recently, Singapore-based feeder container ship owner X-Press Feeders was ordered by the Supreme Court of Sri Lanka to pay $1 billion in compensation for severe marine and coastal pollution caused by its operated vessel, the “X-Press Pearl.” The court ruled that the incident was “preventable,” citing gross negligence by the responsible parties, including deliberate concealment and untimely reporting.
In a 361-page judgment, the Supreme Court of Sri Lanka stated that X-Press Feeders must pay the $1 billion compensation within one year, with the amount allowed to be paid in four installments. The first installment of $250 million is due on or before September 23, followed by the principal portion of $500 million within the next six months.
This compensation case stems from June 2021, when the “X-Press Pearl” caught fire and eventually sank near Colombo, Sri Lanka, triggering a severe marine disaster.
At the time, the Singapore-flagged “X-Press Pearl” had departed from Jebel Ali Port when a leaking container carrying nitric acid was discovered on deck. The vessel subsequently docked at Hamad Port in Qatar and Hazira Port in India, where requests to unload the leaking container were denied due to the lack of immediately available specialized facilities to handle the nitric acid leak. The ship then proceeded toward Sri Lankan waters near Colombo despite an approaching cyclone.
On May 20, 2021, a fire broke out on the “X-Press Pearl.” By May 25, the fire, exacerbated by leaking nitric acid and uncontrolled southwest monsoon winds, engulfed the vessel, leading to explosions. Two Indian crew members were injured, and eight containers fell into the sea. The 25 crew members onboard, including 14 Chinese nationals, were evacuated by the Sri Lankan Navy. On June 2, the cargo ship sank in Sri Lankan territorial waters, 9.5 nautical miles east of Colombo Port. It was carrying 1,486 containers, 81 of which were confirmed to contain toxic, hazardous, and dangerous goods.
The Supreme Court of Sri Lanka condemned the operator, captain, and agents of the “X-Press Pearl” for “deliberately concealing the true conditions onboard and inside the vessel, including the deteriorating state of the damaged container and the actual situation in cargo hold No. 2, while failing to provide adequate and timely notifications regarding such conditions.”
The court stated that such actions “deprived Sri Lankan authorities of critical response time.” It ruled that the fire and sinking of the vessel, which caused this marine and coastal environmental disaster, were “preventable” and held the operator, captain, and agents of the “X-Press Pearl” jointly and severally liable for all resulting damages and losses.
The accident not only led to hazardous chemical leaks but also triggered the largest recorded marine plastic spill in history. In addition to toxic chemical leaks, 46,960 bags of polyethylene from 20 containers released 70 to 75 billion plastic pellets into Sri Lanka’s western coastal waters, killing 417 sea turtles, 48 dolphins, and 8 whales, while washing large quantities of fish ashore. A fishing ban was imposed in the affected waters for over a year, idling approximately 5,600 fishing vessels and severely impacting fishermen’s livelihoods.
Beyond this case, X-Press Feeders and its related companies still face multiple claims related to the sinking of the “X-Press Pearl.” The Supreme Court of Sri Lanka specifically noted that additional compensation liabilities may be determined in the future based on circumstances.
Separately, shipping media *TradeWinds* reported that the vessel’s Russian captain, Vitaly Tyutkalo, has been detained in Sri Lanka for over four years since the fire and has yet to be released.
