MSC AKITETA II

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Detained ship may sail soon after bond in connection with loss of MSC Elsa 3 was reduced

The 'MSC Akiteta II',, which has been detained in the port of Vizhinjam since July 9, may depart soon, after MSC has won a reduction in the required court bond. The vessel is caught up in the broader claims for damages filed by the state of Kerala after the loss of the 'MSC Elsa 3' i. The vessel was arrested oduring its normal port call as collateral in the compensation claims case filed for the damages incurred from the loss of the container ship 14 nautical miles off the coast. Environmental groups were claiming there is serious ecological damage in the south-eastern Arabian Sea. They asserted that the water quality and marine life have been disrupted and that hydrocarbon and heavy-metal pollution have been traced to the wreck. The state filed a total of over $1 billion in claims against MSC Mediterranean Shipping and the ship manager. This was including damages to the environment, the costs of steps taken to reduce the damage and clean the pollution, and towards the economic loss of the fishing community. As part of the claim, the Kerala High Court arrested the 'MSC Akiteta II' and ordered the company to post a bond for the release of the ship. Lawyers for MSC declined to post the bond and have been arguing to limit MSC’s liability to possibly just $14.8 million. They contended the wreck was outside the state’s jurisdiction and called the amount sought unrealistic. They have also moved to consolidate the claims filed with the court. The Kerala High Court on Sep 25 lowered the bond for the 'MSC Akiteta II' to approximately $140 million. The court, however, has reserved the right for the state to file additional documentation on its claims to increase the bond or to arrest other MSC vessels in the future. Several MSC container ships have been detained related to various claims related to the 'MSC Elsa 3' loss, including those from the fishing community and shippers who had cargo lost aboard the vessel. Those cases, however, resulted in smaller bonds, and the other vessels were released after only a short period of time.

Ship arrested over compensation claims after sinking of MSC Elsa 3

The Kerala High Court has ordered the conditional arrest of the 'MSC Akiteta II' over compensation claims arising from the sinking of the 'MSC Elsa 3', which had allegedly caused widespread environmental and economic damage (State of Kerala v MSC Akiteta II & ors). The Justice MA Abdul Hakhim passed the interim order on an admiralty suit filed by the Kerala government seeking a compensation of Rs9,531 crore. The ship is currently anchored at Kerala's Vizhinjam and within the jurisdiction of the High Court. In its plaint, the State invoked Section 4 of the Admiralty (Jurisdiction and Settlement of Maritime Claims) Act, 2017, to seek compensation, including Rs8,626.12 crores for pollution damage, Rs378.48 crores for environmental restoration, and Rs526.51 crores for economic losses suffered by fishermen and coastal communities, amounting to a total maritime claim of Rs9,531.11 crores, with interest on the entire sum. The State submitted that its claim arose due to the environmental damage, economic loss to fisherfolk and government expenditure on containment and clean up of the shores and informed the Court that relief payments and free rations had been issued to over 1 lakh affected families. The government submitted that the 'MSC Akiteka II' is within the Court's jurisdiction but was at risk of leaving Indian waters imminently and therefore, the Court should invoke Section 5(1)(b) read with Section 5(2) of the Admiralty Ac and order the immediate arrest of the vessel. The Court observed that the documents on record established a prima facie case, showing that the two vessels were sister ships and that MSC had substantial control over both. The Court noted that the continued presence of the 'MSC Akiteta II' within its jurisdiction gave it authority under Sections 4 and 5 of the Admiralty Act to pass a conditional order of arrest. Accordingly, the Court ordered the ship to be detained until the owners deposited Rs9,531 crore or provided adequate security. Adani Vizhinjam Port Pvt Ltd was directed to execute the arrest and ensure safe custody of the vessel. The Court also clarified that the order would not interfere with the loading or unloading of cargo. The matter will be heard next on July 10, 2025. This is the third MSC vessel to be detained by the Court in connection with the sinking of the 'MSC Elsa 3'.

Global Ship Lease announces extension of charters with CMA CGM

Global Ship Lease, Inc. (NYSE:GSL) (the "Company" or "GSL") has agreed with CMA CGM to extend the charters of the Marie Delmas and Kumasi, two 2,207-TEU vessels, for a period of up to 3.25 years, at GSL's option, the Company said on Wednesday in its press release. Under the agreement, a revised rate of $13,000 per day will apply from August 1, 2016 until the charters' previous earliest expiry dates in September 2017, after which Global Ship Lease has three consecutive option periods, the first of 1.25 years and the second and third of one year each, through December 31, 2020 at a rate of $9,800 per day.