Following the sinking of the container ship “MSC Elsa 3” off the coast of Kerala, India, in late May—which caused severe environmental pollution and economic losses to the fishing industry—the Indian government has formally filed a lawsuit in the Indian High Court, demanding $1.1 billion in compensation from the shipowner, Mediterranean Shipping Company (MSC). The government has also successfully secured the detention of the sister vessel “MSC Akiteta II,” currently docked at a local port, as collateral.
According to court documents, the claim consists of three main components: $1 billion for direct pollution-related damages, $44 million for ecological restoration, and $61.3 million for economic losses suffered by the fishing community. The Kerala state government emphasized that the incident not only damaged coastal ecosystems but also severely impacted local fisheries income and public confidence, potentially causing long-term negative effects on the business environment.
Although divers promptly sealed the fuel tanks after the accident, preventing a large-scale oil spill, significant pollution remains. The Directorate General of Shipping (DGS) reported that as of early July, approximately 450 to 500 tons of plastic pellets (nurdles) had been collected from the shoreline. Additionally, six large marine animal carcasses, including a whale and a dolphin, were recovered near the accident site, suspected to have died from exposure to microplastics or toxic substances.
The sunken “MSC Elsa 3” was carrying 643 containers at the time of the incident, of which 61 have been salvaged so far. Cleanup and recovery operations are ongoing. Media reports indicate that the salvage work was temporarily halted due to a contractor change to SMIT. New equipment and diving teams are expected to arrive later this month, with the next phase of underwater operations—including residual fuel extraction—scheduled for August.
As part of the compensation case, the court has approved the temporary seizure of the “MSC Akiteta II,” another MSC-owned container ship docked at Vizhinjam Port. Built in 2001, the vessel has a deadweight tonnage of 30,592 tons and a capacity of 2,226 TEU. The court ruled that the ship meets the conditions for collateral and may continue cargo operations but cannot leave the port. A hearing is set for July 10.
Notably, this is not the first time MSC has faced similar legal proceedings in India. In other cases, MSC vessels have been detained until the company posted security.
The investigation into the cause of the accident is still underway. Indian authorities previously noted improper stowage and lashing of some containers. The vessel’s Voyage Data Recorder (VDR) has been retrieved by divers and is under further analysis. Meanwhile, the captain and some crew members remain detained in Kochi, undergoing police investigation for alleged “negligence in hazardous material management.”
