In 2021, the X-Press Pearl, a container ship operated by X-Press Feeders, sank in waters near Sri Lanka due to a container fire. Last month, the Sri Lankan Supreme Court ruled on the X-Press Pearl sinking, ordering the X-Press Pearl’s owner and related parties to pay US$1 billion in compensation for the environmental damage caused to Sri Lanka’s marine environment by the 2021 sinking of the ship.
X-Press Feeders issued a statement criticizing the Sri Lankan Supreme Court’s ruling, calling for “rational decision-making and adjudication on the issues of liability and compensation,” and expressing “deep concern” over the recent Sri Lankan Supreme Court ruling requiring the payment of an initial compensation of US$1 billion within the year.
Although X-Press Feeders acknowledged the need to compensate for environmental damage, the company wrote in a statement: “We believe this must be done in a fair and reasonable manner.” The company pointed out that the director of the Sri Lanka Ports Authority, the director of the Merchant Shipping Department, the environmental protection department and the neglect of the ship’s request for help had all made mistakes in decision-making, and emphasized that Qatar, India and Sri Lanka all refused requests to unload the containers before the fire broke out.
X-Press Feeders insisted: “The court’s decision clearly intends to place all responsibility and liability on the shipowner and operator.” The company pointed out that Sri Lankan experts boarded the ship for an inspection more than a week before it sank but did not raise any alarms or immediate concerns, and that there was no clear instruction from the environmental protection department to move the ship away from the coast.
Instead, X-Press Feeders argues that the court “effectively convicted the captain and local agent of criminal offenses before their trials were concluded.” The company emphasizes that the captain of the container ship X-Press Pearl has been detained in Sri Lanka for four and a half years and failed to appear or be represented during the Supreme Court hearing. X-Press Feeders claims the captain was not given the opportunity to make a statement during the trial. Furthermore, the captain faces another criminal trial.
X-Press Feeders pointed out that, as an agent, it had no decision-making authority in ship operations. However, the Sri Lankan side claimed that the agent provided incomplete and incorrect information at the time of the accident. X-Press Feeders stated that the agent had not yet been prosecuted for some of the allegations, but the Supreme Court still requested the police to further investigate the agent and bring charges.
“The judgment effectively holds him (the master) and the agents as human collateral to ensure compliance of the owners and operators,” asserts X-Press Feeders. It responds to the judgment saying it ignores accepted international maritime law and establishes an unprecedented level of risk, which it believes most shipping companies will struggle to meet.
It claims to have paid more than $150 million to date for salvaging the wreck, cleaning up plastic particles on beaches and compensating affected fishermen.
Previous reports indicated that the Singapore-flagged container ship “X-Press Pearl” experienced a nitric acid leak from a container loaded on its deck during its voyage from Jebel Ali Port.
After being refused entry at both Hamad Port and Hazira Port, the “X-Press Pearl” arrived at Colombo Port on May 19, 2021, still carrying the leaking container. On May 20, 2021, the ship suddenly caught fire, resulting in its destruction, and it sank off the coast of Sri Lanka on June 2, 2021.
