Court Orders Shipping Firm to Pay $150M for Ecological Damage

On September 26, 2025, the Kerala High Court delivered an interim order directing the Mediterranean Shipping Company (MSC) to pay a security of ₹1227.62 crore (around $150 million) towards compensation for the damage to the marine ecosystem and the corresponding economic losses suffered by the local fishing community on the coast of Kochi. This ruling comes in response to the sinking of the MSC ELSA 3 vessel, which was carrying several pieces of cargo classified as "hazardous," on May 25 this year.

The Liberia-flagged vessel, en route from Vizhinjam to Kochi, sank about 14 nautical miles off the Kochi coast. It was carrying 643 containers, including several with microplastics and at least 12 containing calcium carbide. In the aftermath, oil spills were reported, and tonnes of plastic nurdles washed up along the southern coastline. Local fishermen also complained of torn nets due to floating cargo containers.

The court's decision was made while hearing an admiralty suit filed by the Kerala government against MSC and its sister companies, demanding a total compensation of ₹9531.11 crore (over $1.1 billion) under various heads. The state had also filed an Interlocutory Application seeking the continued arrest of the MSC AKITETA 2 vessel, currently held at the Vizhinjam port and belonging to a sister firm of MSC, until the shipping firm paid the security or the compensation claimed for the damages.

The court agreed with the state's contentions on some of the demands, such as the damage to the marine ecosystem due to oil pollution, economic losses to fishermen, and costs for plastic and chemical pollution. However, the court offered a different take on the state's claim of over ₹8000 crore for oil pollution damages, fixing the security at ₹500 crore instead