MSC Sues to Limit Liability to $14 Million for Loss of MSC Elsa 3 off India
MSC Mediterranean Shipping Company, as the charterer of the lost containership MSC Elsa 3, along with the vessel’s owners, has filed an admiralty suit in India seeking to limit their liability. The companies are citing the large number of claims already filed and the open-ended possibilities, saying that if the liability is not capped, it has the potential to disrupt insurance and freight operations and drive up the price of goods.
There are already seven lawsuits filed with the Kerala High Court, the largest being a claim for more than $1 billion from the government. Private cases were also filed on behalf of shippers who had cargo aboard the ship, as well as the fishing community and others. MSC in the filing says that it could be open to many claims, noting there were 643 containers aboard the vessel when it went down on May 25.
The lawsuit seeks to limit the amount of potential claims to a value calculated based on the tonnage of the vessel. It would be approximately $14.2 million, subject to current conversion rates, when the compensation fund is established.
The lawsuit is filed under India’s Maritime Shipping Act of 1958, which allows shipowners to cap liabilities, and the 2015 Merchant Shipping Rules, which reiterated the right to limit liability caused by the sinking of a ship. The suit further highlights that India is a signatory to the International Convention on Limitation of Liability for Maritime Claims.
The suit includes an eight-slot beyond the current cases, which would be used as a catch-all for any future claims. They are also seeking a permanent injunction from other defendants initiating other cases against the MSC Elsa 3.
The filing comes in response to the massive claim filed by the government, which seeks damages plus the cost of the remediation. India’s Directorate General of Shipping has overseen the recovery of containers that washed ashore, debris from the wreck, and the containment of oil leaking from the ship.
The suits are proceeding even as the recovery effort continues. A salvage team is in the area and prepared to begin saturation diving to the vessel as part of an effort to siphon oil from the tanks. However, they report that the swell and seas have been too high for the effort to begin.
Sri Lanka, which is hundreds of miles away from the wreck site, has also filed suit seeking compensation. It reports that debris from the ship is washing up on its beaches.
The Kerala High Court has scheduled the next hearing for the case on August 21. The court continues to detain the MSC Akiteta II at the Vizhinjam port in effect as collateral against the claims. It had previously also briefly held two other MSC ships in response to individual claims from shippers. MSC responded to the case denying the extent of the damage claimed by the government and rejecting posting a bond, which would have released the MSC Akiteta II.
MSC’s attempt to limit liability follows a similar move by the owners and operators of the Dali, which destroyed the bridge in Baltimore in 2024. They used the international law calling for a limit of approximately $44 million on the potential liability. The U.S. District Court is expected to hear that case in 2026.