Indian State Sues MSC for $1.1 Billion Over Bunker Spill Caused by Sunken Ship

by Ship & Bunker News Team
Wednesday July 9, 2025

India's state of Kerala has filed a $1.1 billion lawsuit against Mediterranean Shipping Company (MSC), alleging oil spill and environmental damages caused by the sinking of the container vessel MSC Elsa 3 off its coast in May.

To secure the compensation claim, the state government filed an admiralty suit seeking the arrest of another MSC vessel, the MSC Akiteta II, which is currently anchored at Vizhinjam Port, according to a court document viewed by Ship & Bunker.

Following the plea, the Kerala High Court ordered the arrest of the vessel, with the case scheduled to be heard on July 10.

The vessel will remain detained until the firm deposits securities of the claim amount. 

The Liberian-flagged MSC Elsa 3 developed a 26-degree starboard list before sinking. It was carrying 13 shipments of hazardous cargo, including 12 containers of calcium carbide, 84 mt of marine diesel, and 367 mt of fuel oil.