India to Resume Negotiations with MSC Regarding Loss of MSC Elsa 3

Seventeen months after the sinking of the containership MSC Elsa 3 off the west coast of India, a court has lifted a stay on a state-appointed committee of government officers, permitting negotiations to resume with MSC Mediterranean Shipping Company. The move comes as the court continues to consider both an admiralty suit filed by the state as well as multiple claims for compensation and loss due to the sinking.

The containership sank about 14.6 nautical miles off the coast in the state of Kerala, India. It impacted the local fishing industry, and there were reports of containers and their contents, including nurdles, washing ashore. Salvage teams worked to stop oil leaks from the wreck, and a cleanup was conducted along the coastline. However, concerns continue over potential pollution from the wreck.

The Kerala High Court had previously, in June 2025, placed a curb on any negotiations with MSC and its insurance companies, requiring the state to file an admiralty suit. The company has filed, seeking to limit its liability, and has argued the state’s claims are inflated. The company has sought to limit its liability to approximately $14.8 million while the Kerala State Government filed a ?9,531 crore (approximately $1.1 billion) admiralty claim. The company posted a bond of approximately $133 million at the court’s direction.

This story was originally published by The Maritime Executive. Read the full story at The Maritime Executive →