Kerala state government authorities in India are exploring legal avenues to hold MSC accountable for the MSC Elsa 3 incident off the Cochin coast. The vessel, a Liberia-flagged ship en route from Vizhinjam to Cochin, sank, triggering a coastal environmental emergency. Salvage operations are ongoing, with 50 containers, including some containing hazardous materials, having washed ashore. The 28-year-old ship carried 643 containers, including 12 with calcium carbide. Concerns persist over dangerous cargo that may have sunk with the vessel.
Initial reports suggest faulty ballast operations may have caused the sinking. Liberia, as the flag state, is typically responsible for investigating marine casualties involving its registered vessels. However, Liberia has reportedly informed Indian authorities that it will not participate in the investigation. This decision may prompt local authorities to sue the shipowner for damages. MSC has been instructed by authorities to set up a damage and liability claim desk to handle losses and liability issues.
The investigation's duration is uncertain, according to an industry expert. Despite many unknowns, the ship is believed to have valid insurance documentation, including protection and indemnity (P&I) hull and machinery cover, as well as cargo insurance.
Geneva-based MSC has significant stakes in the Indian market, being the largest container carrier out of India with approximately 25% market share. Container relays at Vizhinjam port are entirely managed by MSC. The carrier also has joint ventures with Adani at Mundra and Ennore ports and is considering shipbuilding developments in India.
The incident follows a major blaze on the Maersk Frankfurt in July last year, another marine casualty along the Indian coast. Indian insurance companies may face large-scale claim settlements from these consecutive incidents, potentially impacting their financial stability.
In crafting this response, I initially focused on the key elements of the incident, including the legal actions, environmental impact, and potential causes. I then expanded to cover the broader implications for MSC and the insurance industry. I made sure to maintain factual accuracy while ensuring the article flows logically and provides comprehensive coverage of the situation.