Kerala Sues MSC for $1.1 Billion Over MSC Elsa-3 Sinking and Environmental Disaster

Logistics News

9-Jul-2025

The state government of Kerala, India, has filed a maritime lawsuit against Mediterranean Shipping Company (MSC), seeking $1.1 billion in compensation for environmental and economic damages caused by the sinking of the vessel MSC Elsa-3 off the state's coast on May 25.


The Liberia-flagged container ship, built in 1997, capsized approximately 13 nautical miles off the coast near Alappuzha while en route from Visakhapatnam to Kochi, amid severe monsoon conditions. The ship was carrying 640 containers, including hazardous materials such as calcium carbide and plastic pellets, along with several hundred tons of fuel. The incident resulted in significant pollution in the Arabian Sea, severely affecting the marine ecosystem, coastal fisheries, and public health.


To date, only 61 containers have been recovered. According to maritime authorities, by early July, around 450 to 500 tons of plastic pellets had been collected along the shoreline, with volunteers continuing cleanup efforts on the beaches.


In response to the disaster, the Kerala High Court ordered the seizure of another MSC vessel, MSC Akiteta II, currently docked at Vizhinjam Port, until MSC provides financial security for the claim. The court’s directive aims to ensure MSC addresses the damages caused by the MSC Elsa-3 incident.


MSC Akiteta II, built in 2001 with a capacity of 2,226 TEUs (slightly larger than the MSC Elsa-3 with 1,730 TEUs), was coincidentally present at the port during the court's ruling. The court allowed the vessel to continue cargo operations but prohibited it from leaving the port until a guarantee is submitted.


Kerala’s government has also taken emergency measures, advising fishermen to avoid venturing out to sea and distributing aid to over 105,000 fishing families affected by the oil spill. The state stressed that MSC must be held accountable for the environmental disaster and the extensive damages it has caused.

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