In a high-stakes legal move, the Mediterranean Shipping Company (MSC) has filed an admiralty suit in India to limit its liability to $14.2 million following the sinking of the MSC Elsa 3 off the Indian coast on May 25, 2025. The vessel was transporting 643 containers when it fell, sparking a wave of lawsuits and environmental concerns.
🌊 What Happened?
The MSC Elsa 3 sank in Indian waters, prompting a $1 billion lawsuit from the Indian government, which includes claims for environmental damage and cleanup costs. Additional lawsuits have been filed by shippers, fishing communities, and even the Sri Lankan government, which reported debris from the wreck washing up on its shores.
⚖️ MSC’s Legal Strategy
MSC is invoking provisions under:
- The Maritime Shipping Act of 1958
- The Merchant Shipping Rules of 2015
- The International Convention on Limitation of Liability for Maritime Claims
These laws allow shipowners to cap liability based on the vessel’s tonnage. MSC is also seeking a permanent injunction to prevent further lawsuits and proposes a compensation fund capped at the calculated liability.
MSC argues that unlimited liability could destabilize global freight operations and insurance markets, potentially increasing the cost of goods worldwide.
🛠️ Recovery Efforts & Legal Proceedings
India’s Directorate General of Shipping is leading recovery operations, including:
- Containing oil leaks
- Retrieving containers and debris
- Preparing for saturation diving to siphon oil from the wreck
However, rough seas have delayed progress.
Meanwhile, the Kerala High Court is handling seven lawsuits and has detained the MSC Akiteta II at Vizhinjam port as collateral. MSC has denied the extent of the damages and refused to post a bond to release the vessel. The next hearing is scheduled for August 21, 2025.
🌍 A Global Trend?
This case echoes a similar legal strategy used by the owners of the Dali, the vessel involved in the Baltimore bridge collapse in 2024, who sought to cap liability at $44 million.
🔗 Further Reading
- MSC Sues to Limit Liability to $14 Million for Loss of MSC Elsa 3 — Maritime Executive
- International Convention on Limitation of Liability for Maritime Claims.aspx) — IMO
- Merchant Shipping Act, 1958 — Government of India
The Maritime-Hub Editorial Team
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