Wan Hai 503 Fails to Secure Refuge Port, Ongoing Salvage Efforts in Indian Ocean

Logistics News

7-Aug-2025

The Wan Hai 503 has failed to secure a refuge port at Sri Lanka's Hambantota Port.


Although the terminal agreed to accept the Wan Hai 503, sources stated that efforts to reach an agreement with government authorities on the terms for bringing the vessel into the country’s waters for salvage operations were unsuccessful.


It is understood that Sri Lankan authorities did not directly reject the Wan Hai 503’s request but instead demanded a letter of undertaking (LoU) worth $3.25 billion for the salvage operation, a figure far beyond the usual liability limits. As a result, the refuge port request was not pursued.


Due to the failure to secure refuge at Hambantota, the Wan Hai 503 remains offshore between India and Sri Lanka, drifting in international waters along with rescue personnel.


Explorations for other potential refuge ports in Southeast Asia and the Middle East are still ongoing, with Penang, Malaysia, currently being the most promising. Sources indicated that, like Hambantota, the port operators in Penang have agreed to accept the vessel, but government approval is still pending.


Undoubtedly, this damaged vessel will undergo a prolonged towage operation in the Indian Ocean, coinciding with the monsoon season.


On June 9th, a fire and explosion occurred in the cargo hold of Wan Hai 503 off the coast of Kerala, India, leading to around 50 containers falling into the sea. Four crew members are still missing.


Indian authorities refused to grant the vessel refuge within their waters, instead ordering the vessel to be towed out of their exclusive economic zone, while rescue personnel continued efforts to extinguish the fire onboard.


By late July, authorities halted salvage operations for the Wan Hai 503, and responsibility for the troubled vessel has since fallen to the ship’s flag state, Singapore.

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