Kerala and MSC Resume Compensation Talks Following MSC Elsa 3 Sinking
Cubierto por 3 fuentesPublicado
The Kerala High Court, in India, ruled on October 27, 2026 that a state committee made up of government officials may resume compensation negotiations with the Swiss shipping line MSC Mediterranean Shipping Company over the sinking of the container ship MSC Elsa 3, which occurred on May 25, 2025 off the coast of Kerala. The ruling lifts a restriction the court itself had imposed in June 2025 over transparency concerns.
Committee's Mandate
The committee is tasked with addressing environmental damage, remediation costs and economic losses suffered by the state and the local fishing community, but it is not empowered to finalize a definitive or binding settlement: any outcome must be submitted to the court for review. The Kerala government stated it had no objections to resuming the talks.
Disputed Figures
MSC is seeking to limit its liability to about $14.8 million and called the state's claim excessive, while Kerala filed an admiralty suit for 9,531 crore rupees, equivalent to about $1.1 billion according to Maritime Executive, or about $1 billion according to Baird Maritime. The carrier posted a bond of approximately $133 million by court order, and according to safety4sea it also provided a bank guarantee of 1,227.62 crore rupees as financial security, not as compensation already paid.
The Sinking and Its Cargo
The Liberian-flagged vessel sank while sailing from Vizhinjam to Kochi, about 14.6 nautical miles off the coast and at a depth of 51 meters, according to Baird Maritime. All 24 crew members were rescued. The manifest included calcium carbide, rubber industry chemicals and plastic nurdles, and safety4sea reported that the vessel was carrying approximately 640 containers with hazardous materials; some of those pellets washed ashore, reaching as far as Sri Lanka.
Wreck Assessment
The shipowners reported that about 437 tonnes of a fuel-water mixture have already been pumped out, and they oppose removing the containers due to the risk that they could break open and release further contamination. The parties agreed on a multibeam survey of the wreck to be carried out by C-Trck Surveys, at the cost of the vessel's interests and under the supervision of the Directorate General of Shipping of India; the Kerala Pollution Control Board has one week to submit suggestions on the scope of the study. The next hearing in the case was set for November 24.
