Background: A container ship operated by Mediterranean Shipping sank off India's coast in May 2025

Eight months after the MSC Elsa 3 container ship capsized off the coast of India, Mediterranean Shipping has submitted a bond to the Kerala High Court, while Indian government is still pursuing its claim for compensation. The bond was accepted by the court in December, allowing the release of a Mediterranean Shipping-owned container ship that has been under seizure July to secure the compensation claim.

The Kerala government had filed a claim for over $1 billion, claiming that the MSC Elsa 3 container ship had caused severe damage after it capsized and sank about 13 nautical miles from the coast. A massive diving operation was launched to plug the leaking fuel tank, followed by the of fuel from the ship. Containers were also washed up along the coastline.

Lawyers for Mediterranean Shipping have consistently argued that the claim amount is excessive. had estimated in court that the actual loss would be around $15.1 million.

On July 7 last year, the High Court had ordered the seizure of the M Akiteta II, which was berthed at the Vizinjam Port, as collateral for the compensation claim. The court had asked for a cash bond to be submitted the release of the vessel, and a debate ensued between the parties on the form and amount of the bond. Mediterranean Shipping had proposed to the court a bank guarantee from a private bank for about $136.3 million. The government, however, had wanted the cash to be deposited in an interest-bearing account to secure the claimant's interests

The court had ruled that the bank guarantee was acceptable, and Mediterranean Shipping had submitted the guarantee letter from the private bank in the second week of December. The court had ordered the release of the Mediterranean Shipping vessel, which had been under seizure in the port for over five months. The vessel is currently sailing in the Indian Ocean.

According to media reports, the court has ordered the next hearing in the case, in which the Kerala government has filed a claim for compensation, to be held on February 13. Mediterranean is also facing other claims for compensation from the fishing community and others, who say that they suffered direct economic losses following the sinking of the ship.

The MSC Akit II is one of several vessels that the court has seized to address different compensation claims. However, the other seizures have been resolved through smaller amounts of bonds submitted in respect of individual cases Because of the huge amount claimed by the state government, this has posed an additional challenge, leading to the ship and its crew getting stuck in Indian ports