Working Conditions Aboard the Msc-Akiteta-Ii

In a significant development following the sinking of the container vessel m/v 'MSC Elsa III' off the coast of Kerala on May 25, 2025, the Mediterranean Shipping Company (MSC) has made a security deposit of ₹1,227.62 crore to the Kerala High Court. This substantial sum has enabled the release of the vessel's sister ship, 'MSC Akiteta II', which had been detained near Vizhinjam port due to a court order linked to the environmental disaster caused by the sinking. The amount was submitted as a bank guarantee in the second week of December 2025, and the sister ship was subsequently released by month’s end. 'MSC Akiteta II' set sail from Port Louis on December 31, arriving in Toamasina on January 3, 2026. On December 4, the Kerala High Court permitted the owners to furnish the bank guarantee through Standard Chartered Bank instead of Kotak Mahindra Bank Ltd, as per an earlier ruling. Following the temporary arrest of 'MSC Akiteta II' on July 7, which was conditioned on the deposit of a larger ₹9,531 crore as security, the court later adjusted the required amount to ₹1,227.62 crore. However, it also noted that the Kerala government retains the option to request an increase in the security amount should further evidence arise. The Kerala government is pursuing claims totaling ₹9,531 crore for damages resulting from the sinking, which include ₹8,626.12 crore for harm to the marine environment and coastal areas, ₹378.48 crore for pollution control measures, and ₹526.51 crore representing economic losses endured by fishermen. The case regarding compensation is scheduled for additional hearings on February 13, 2026, before a bench presided over by Justice M.A. Abdul Hakhim.

In a significant development for maritime operations, the MSC Kkiteta II witnessed its first crew change on October 25 after being anchored at the outer confines of Vizhinjam International Port for nearly four months. This operation saw the departure of 12 crew members, including a national from Ghana, who exited the vessel amidst ongoing detention. Simultaneously, 11 new crew members boarded the ship via a barge operated by Adani Ports. The adjustment was orchestrated with the assistance of Waterline Shipping, a local firm specializing in mooring operations at the port, which has also been responsible for supplying essential provisions to the stranded vessel. The necessity for crew replacement arose as several members had fulfilled their contracts during the prolonged period of inactivity.

The 'MSC Akiteta II', which has been docked at the Vizhinjam port since July 9, 2023, is on the verge of departure following a successful appeal for a lower court bond by MSC. This vessel is embroiled in extensive damage claims raised by the state of Kerala in connection with the loss of the 'MSC Elsa 3'. Initially detained during a routine port visit, the 'MSC Akiteta II' is being held as collateral for compensation claims stemming from the maritime incident that occurred 14 nautical miles off the coast, leading to allegations of significant environmental harm in the south-eastern Arabian Sea. Environmental advocates have expressed concerns about severe ecological disruption, citing evidence of water quality degradation and damage to marine life. They claim hydrocarbon and heavy-metal pollutants have been linked back to the shipwreck. In response, the state has lodged claims exceeding $1 billion against MSC Mediterranean Shipping and the vessel's management, covering environmental restoration costs, damage mitigation, and losses incurred by the local fishing community. Following the Kerala High Court's intervention, the 'MSC Akiteta II' was detained, mandating the company to post a bond for its release. MSC's legal representatives opted against fulfilling the bond requirement and have pushed to restrict MSC's potential liability to approximately $14.8 million, arguing that the incident unfolding outside the state’s jurisdiction offers grounds for a reduced claim. On September 25, 2023, the Kerala High Court made a pivotal decision to lower the bond for the 'MSC Akiteta II' to around $140 million. However, it maintained the authority for the state to submit further documentation that could increase the bond requirement or initiate the detention of additional MSC vessels in the future. Other MSC container ships have faced detention linked to claims from various stakeholders, including fishers and shippers who lost cargo on the 'MSC Elsa 3'. These situations resulted in lesser bond amounts, permitting swift releases of those vessels. As of now, the fate of the 'MSC Akiteta II' hangs in the balance as it awaits final clearance for its release.

In a significant legal development, the Kerala High Court has issued a conditional arrest order for the 'MSC Akiteta II' in relation to compensation claims stemming from the sinking of its sister ship, 'MSC Elsa 3'. The incident has reportedly led to substantial environmental and economic repercussions in the region, prompting the State of Kerala to file an admiralty suit demanding compensation amounting to an astonishing Rs9,531 crore (State of Kerala v MSC Akiteta II & ors). Presiding Justice MA Abdul Hakhim issued the interim ruling, noting that the vessel is currently anchored at Vizhinjam, Kerala, within the High Court's jurisdiction. The state government's claim arises under Section 4 of the Admiralty (Jurisdiction and Settlement of Maritime Claims) Act, 2017. They are seeking various forms of compensation, including Rs8,626.12 crores dedicated to addressing pollution damage, Rs378.48 crores earmarked for environmental restoration efforts, and Rs526.51 crores to cover economic losses experienced by fishermen and coastal communities. The cumulative claim totals Rs9,531.11 crores, including interest on the amount. In presenting its case, the Kerala government highlighted the environmental devastation and economic hardship faced by fisherfolk, as well as government expenditures on the containment and clean-up operations along the affected shores. They disclosed that more than 100,000 families have received relief aid and free rations due to the adverse effects of the incident. Concerns were raised about the 'MSC Akiteta II' potentially leaving Indian waters, which prompted the court to consider Section 5(1)(b) along with Section 5(2) of the Admiralty Act to facilitate the vessel's immediate detention. The court established a prima facie case, noting the connection between the two MSC vessels and the considerable control exerted by MSC over both ships. Consequently, the court exercised its authority under Sections 4 and 5 of the Admiralty Act, ordering the detention of the 'MSC Akiteta II' until the ship’s owners either deposited the required Rs9,531 crore or provided sufficient security. Adani Vizhinjam Port Pvt Ltd has been tasked with executing the ship's arrest and ensuring its safe custody, with the added clarification that this order will not interfere with any ongoing loading or unloading operations. The case is set for its next hearing on July 10, 2025. This represents the third MSC vessel detained by the court in connection with the fallout from the 'MSC Elsa 3' sinking.

In a significant development for the shipping industry, Global Ship Lease, Inc. (NYSE:GSL) has announced an agreement with CMA CGM to extend the charters for two of its vessels, the Marie Delmas and Kumasi, both boasting a capacity of 2,207 TEU. This extension, which grants Global Ship Lease the option to extend for up to 3.25 years, was disclosed in a recent press release issued on Wednesday. Starting August 1, 2016, the new charter rate will be set at $13,000 per day until the vessels’ original earliest expiry in September 2017. Following this period, GSL is positioned to leverage three successive option periods: an initial extension of 1.25 years, followed by two additional one-year terms, concluding on December 31, 2020, at a revised rate of $9,800 per day. This strategic move enhances GSL's operational flexibility and strengthens its relationship with CMA CGM.