X-PRESS PEARL

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X Press Feeders s to pay $1 billion in interim damages

The Supreme Court of Sri Lanka ordered on July 24, that the Singaporean shipping company X Press Feeders has to pay $1 billion in interim damages for the sinking of the "X-Press Pearl". The Sri Lankan authorities have requested $40 million in compensation the day after the accident, now up to $1 billion, which could increase further depending on the calculation of other compensation, according to the judgment. The accident caused an unprecedented ecological disaster, preventing all fishing activity for several months and causing significant deposits of chemicals and plastic pellets along 80 kilometres of coastline. Despite obtaining an order from a London maritime court in July 2023, limiting their liability to a maximum of $25 million, the Singaporean owners are facing an appeal of this decision by Sri Lanka and are now awaiting a decision from the London court. The owners have already had to pay $7.85 million for cleanup and compensation to the fishermen. Sri Lankan authorities believe the fire was caused by a nitric acid leak, which the crew appeared to have been aware of nine days before the fire began. Ports in Qatar and India had refused to unload the leaking nitric acid.

VDR with conversation between Russian master and managers filed at Supreme Court

A VDR transcript has emerged with a series of conversations between the master of the 'XPress Pearl' and shoreside managers. The document was filed by Sri Lanka's government in a case before Colombo's Supreme Court; the shipowner disputes the document's accuracy and completeness, and was contesting it in court proceedings. It appeared to confirm initial accounts of a slow-rolling catastrophe that began long before the 'XPress Pearl' reached Sri Lanka in May 2021. It providd new details of the crew's attempts to respond to a leaking container of nitric acid, and Vitaly Tyutkalo. the Russian master's growing frustration with the lack of a solution: "About one liter an hour [leak rate from the container]. Remain the same. We're washing deck continuously by fire pump, seawater, because main deck too much corrosion . . . very strong chemical, very strong chemical If you will read my email, I sent to everybody, right, already three days fire pump running. But leakage remain on deck and maybe more and more corrosion." After the call with the home office, he complained to a crew member on the bridge that "they don't take any action, don't give me any advice," and claimed that company officials wouldn't take responsibility. Port officials at Hamad, Qatar and Hazira, India refused to provide a port-of-refuge service to unload the leaking boxes from the 'Xpress Pearl', so the ship sailed onwards to Colombo, Sri Lanka, a voyage of some 1,000 nautical miles southeast from Hazira. After the arrival off Colombo, a container on deck caught fire, but local authorities refused to allow the 'XPress Pearl' to berth for firefighting operations. The master was facing criminal charges in connection with the disaster and remained in Sri Lanka at least as recently as last year, free to live on the island but unable to leave until court proceedings have finished.

Allegations of corruption in handling compensation claims u

The fire aboard the 'X-Press Pear' has become controversial amid allegations of corruption in handling compensation claims under the previous government. The island nation had a political leadership change in Sep 2024, with Anura Kumara Dissanayake elected as its new president. The new Sri Lankan government has decided to reopen the case in the wake of allegations that a $6.4bn insurance claim filed in Singapore was mishandled, in order to unearth possible lapses and to ascertain how the claim can be recovered. Abot $8m was settled by the ship’s insurer or P&I club, in multiple stages, against the massive claim. A litigation was ongoing against the feeder line in Singapore, and against its London-based insurer in a UK court. Sri Lanka has legal constraints against the carrier or its insurer in the face of “no asset base” for them in the country to underwrite the damages through potential confiscation, sources believe. Multiple sources, including those attached to the Sri Lanka Marine Environmental Protection Authority, had earlier flagged concerns about some “intentional laxity and delays” by agencies of the previous government in pursuing the claim for damages.