Kerala High Court Orders Arrest of an MSC Boxship Over Elsa 3 Sinking
Drifts of miniscule plastic nurdles are washing ashore in Kovalam, Kerala after the sinking of the container ship MSC Elsa 3, which took on a list and sank off the coast on May 25. As the environmental damage from the casualty racks up, the High Court in Kerala has ordered the detention of another MSC ship to ensure that the market-leading container line can pay compensation.
An Indian exporter, Sans Cashew India Private Ltd., has filed suit seeking $85,000 for the loss of a container of cashew nuts that was aboard MSC Elsa 3. The plaintiff alleged unseaworthiness, and filed for the arrest of a second MSC vessel - the MSC Polo 2 - to ensure repayment.
MSC's counsel countered that MSC Polo 2 was outside of India's 12-nautical-mile territorial sea, beyond the jurisdiction of local authorities, according to local media. However, the court sided with the plaintiff and issued a conditional arrest order to be carried out at Adani Vizhinjam Port (unless MSC posts a bond for the amount of the claim). The Hindu reports that MSC deposited a demand draft for the amount of the bond later in the day.
The state of Kerala is also in talks with MSC over compensation, and negotiations are ongoing. The state has signaled that it plans to file an admiralty suit against MSC, but has not yet done so and has formed a negotiating committee to talk with MSC over terms, according to Indian media.
In a rare development, the High Court of Kerala's chief justice and a second court judge issued a warning from the bench, cautioning the state government that these behind-closed-doors, out-of-court negotiations were irregular. Typically such talks between parties would take place within the context of an admiralty suit or arbitral process. "Various questions arise for consideration—whether such a negotiation will result in a binding agreement, whether it can ensure transparency, and whether the court's jurisdiction would be impacted," the judges wrote. "It would be appropriate that the avenue of negotiation is deferred at present."
India's government is concerned about the recent uptick in casualties off the coast - not just MSC Elsa 3, but also the ongoing fire aboard Wan Hai 503 and two smaller, previously unreported shipboard fires. In recent weeks, cargo fires related to misdeclared containerized freight have broken out aboard the Interasia Tenacity and the Wan Hai 613, Indian representatives told IMO's Marine Safety Committee this week.