Kerala court lets India reopen MSC Elsa 3 compensation talks with MSC
The state claims about $1.1bn while MSC seeks to limit liability to $14.8m; a multibeam survey of the wreck has been commissioned
The Kerala High Court has lifted its stay on a state-appointed committee of government officers, allowing negotiations with MSC Mediterranean Shipping Company over the loss of the containership MSC Elsa 3 to resume. The ship sank about 14.6 nautical miles off the Kerala coast in May 2025, disrupting the local fishery and washing containers, their contents and plastic nurdles ashore.
In June 2025 the court had barred negotiations with MSC and its insurers and required the state to file an admiralty suit. Kerala has since filed a claim of ₹9,531 crore, about $1.1bn. MSC argues the claims are inflated and is seeking to limit its liability to about $14.8m; at the court's direction it has posted a bond of about $133m.
On 27 October the court directed the committee to resume talks on compensation for remedial work, economic losses, environmental damage and losses to the fishing community. The state raised no objection. The committee cannot conclude a final settlement or a binding agreement, and any outcome must be put before the court, which is still hearing both the admiralty suit and multiple compensation claims.
What is left in the wreck?
Containers remain on board, and the parties disagree over whether the wreck is still polluting. Besides the ship's fuel, the manifests listed calcium carbide, rubber chemicals and nurdles. The authorities have told the court the remaining containers may have to be removed. MSC's lawyers said 437 tonnes of fuel and contaminants have already been pumped out, and that lifting waterlogged containers could break them open and release more.
A multibeam survey of the wreck is now being prepared. MSC had proposed that its scope be drawn up jointly by the stakeholders. The court allowed India's shipping directorate to hold meetings on 17 and 20 October, at which C-Trck Surveys was selected to carry out the environmental assessment, and gave the Kerala State Pollution Control Board a week to submit its suggestions. The survey will be paid for by the shipowner.
The next hearing on MSC Elsa 3 is scheduled for 24 November.
This story is part of the Maritime Briefing of 30 October 2026.
