MSC loses appeal to limit USD 200 mn in damage costs for Flaminia case + Chinese shipbuilder to build two of the world’s largest ammonia carriers

MSC faces USD 200 mn bill after its appeal to limit liability in 2012 Flaminia case was denied: A UK Court of Appeal has rejected an appeal by Mediterranean Shipping Company (MSC) to limit its liability for losses incurred in the 2012 MSC Flaminia incident, Splash reports. In 2021, an admiralty judge ruled in favor of Conti, the ship's owner, awarding damages of approximately USD 200 mn and denying MSC's entitlement to liability limitations.The Court of Appeal upheld the previous ruling, setting a precedent with broad implications for the shipping industry and its ins. providers.

Background: The MSC Flaminia caught fire mid-Atlantic in July 2012 and is now at the center of an ongoing court battle. The fire and explosions resulted in the death of three crew members and extensive damage to the vessel and hundreds of containers, the Maritime Exclusive reports. The dispute primarily revolves around Conti's claims for expenses related to decontamination, cargo removal, firefighting water removal, and other costs incurred during the salvage operation, amounting to EUR 32 mn. Meanwhile, the ship repair costs were estimated at USD 21 mn. Conti also reported EUR 23 mn in various expenses and EUR 1.9 mn paid to authorities in multiple countries to prevent pollution from the damaged vessel.

China’s Jiangnan Shipbuilding has inked an agreement with Singapore-based Eastern Pacific Shipping to build two very large ammonia carriers (VLAC), Offshore Energy reports. The design of carriers is based on Jiangnan's fourth-generation Panda 93 A-class of very large gas carriers (VLGC). They are set to become the world's largest ammonia carriers, ideal for transporting green ammonia over long distances and capable of carrying liquefied petroleum gasses like propane and butane. The ships have received classification from Lloyd's Register of Shipping.

Features: The ships are 230 meters long — 36.6 meters in molded breadth and 22.5 meters in molded depth — with a structural draft of 13 meters.