Photo by Ian Taylor

The Indian state of Kerala has initiated legal proceedings against the Mediterranean Shipping Company (MSC), demanding $1.1 billion in compensation after the container vessel MSC Elsa 3 sank off the coast of Kochi in May 2025. The sinking resulted in the release of diesel fuel and hazardous cargo into the Arabian Sea, prompting significant environmental damage and disrupting local fishing communities.

The MSC Elsa 3, registered under the Liberian flag, developed a dangerous 26-degree list before capsizing approximately 38 nautical miles southwest of Kochi. At the time, it was carrying 640 containers, including chemicals such as calcium carbide and sulfur, alongside large quantities of furnace oil and diesel. The resulting spill contaminated marine ecosystems and threatened the livelihoods of thousands of fishermen.

Following the disaster, the Kerala High Court ordered port authorities to detain another MSC vessel at Vizhinjam Port to ensure financial security covering the compensation claim. Meanwhile, the state government imposed a fishing ban within a 20-nautical-mile radius of the spill site and provided aid to over 105,000 fishing families affected by the crisis.

The Indian Coast Guard undertook extensive containment and cleanup operations, focusing on oil spill mitigation and the recovery of floating containers. Authorities have warned local residents against handling any debris washed ashore and classified the incident as a state-specific disaster, coordinating closely with federal agencies to manage the ongoing environmental threat.

Kerala’s lawsuit raises critical questions about MSC’s handling of the sinking and the broader responsibilities of shipping companies in preventing such environmental catastrophes. The case highlights increasing global scrutiny on maritime safety and corporate accountability in the shipping industry.