Indian Court Lowers Bond for Release of Arrested MSC Containership
An MSC containership, which has been detained in India since early July, has won a reduction in the required court bond so that the vessel may be able to soon depart. The vessel is caught up in the broader claims for damages filed by the state of Kerala after the loss of the MSC Elsa 3 in May off the coast.
The MSC Akiteta II was arrested on July 9 during its normal port call as collateral in the compensation claims case filed for the damages incurred from the loss of the containership, which sank approximately 14 nautical miles off the coast. The company has contended there was only a small release of oil, but as many as 100 containers were floating or washed ashore, as well as large quantities of plastic beads (nurdles) and other debris.
An initial effort using divers was able to cap the fuel leaks, and last month, a saturation diving effort began to pump the remaining fuel from the vessel, which is lying on the seabed approximately 167 feet (51 meters) below the surface. The ship went down with over 85 metric tons of diesel and 367 metric tons of fuel oil aboard. Environmental groups, according to the Indian media, are claiming there is serious ecological damage in the south-eastern Arabian Sea. They assert that water quality and marine life have been disrupted and that hydrocarbon and heavy-metal pollution have been traced to the wreck.
The state filed a total of over $1 billion in claims against MSC Mediterranean Shipping and the ship manager. This includes damages to the environment, the costs of steps taken to reduce the damage and clean the pollution, and toward the economic loss of the fishing community. As part of the claim, the Kerala High Court arrested the MSC Akiteta II and ordered the company to post a bond for the release of the ship.
Lawyers for MSC declined to post the bond and have been arguing to limit MSC’s liability to possibly just $14.8 million. They contend the wreck is outside the state’s jurisdiction and called the amount sought “unrealistic.” They have also moved to consolidate the claims filed with the court.
The Kerala High Court on Thursday, September 25, lowered the bond for the MSC Akiteta II to approximately $140 million. The court, however, has reserved the right for the state to file additional documentation on its claims to increase the bond or to arrest other MSC vessels in the future.
Several MSC containerships have been detained related to various claims related to the MSC Elsa 3, including those from the fishing community and shippers who had cargo lost aboard the vessel. Those cases, however, resulted in smaller bonds, and the other vessels were released after only a short period of time.
MSC Akiteta II, built in 2002, is registered in Liberia. It has a capacity of 2,226 TEU and was operating its route when it was detained at the Vizhinjam Port. The vessel has remained for 11 weeks in the anchorage.