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SAFETY4SEA

Stolt-Nielsen to pay almost $300 million over MSC Flaminia case

by The Editorial Team
May 21, 2024
in Shipping
MSC Flaminia

Credit: Central Command for Maritime Emergencies

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After twelve years, the legal battle over the fatal explosion on the “MSC Flaminia” has concluded with a settlement. The Stolt-Nielsen Group agreed to pay up to $290 million in compensation, acknowledging partial responsibility for the accident.

The explosion occurred on July 1, 2012, as the “MSC Flaminia” was traveling from Charleston, US, to Antwerp, Belgium. The ship, carrying 6,500 TEUs, caught fire due to the spontaneous polymerization of a chemical (DVB) inside tank containers, leading to an explosion. Three crew members died, and the remaining 20 people onboard were rescued. 

The subsequent legal dispute involved multiple parties. The ship’s owners, managers, and operators initially blamed Stolt Tank Containers and Deltech for not adequately warning of the cargo’s dangers. A 2018 court ruling found Stolt 45% and Deltech 55% responsible. Appeals followed, but in June 2023, the Second Circuit Court of Appeals upheld the initial ruling.

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Besides the settlement, Conti, the ship’s owner, sought arbitration against MSC, the charterer, for losses incurred. In 2021, an arbitrator awarded Conti $200 million.

MSC’s attempts to limit its liability under the 1976 Convention on the Limitation of Liability for Maritime Claims were largely unsuccessful, with the British High Court and the Court of Appeal rejecting most claims for liability limitation.

Consequently, MSC was held liable for various costs associated with the accident and lost revenue while the vessel was out of service.

 

Stolt-Nielsen to pay almost $300 million over MSC Flaminia caseStolt-Nielsen to pay almost $300 million over MSC Flaminia case
Stolt-Nielsen to pay almost $300 million over MSC Flaminia caseStolt-Nielsen to pay almost $300 million over MSC Flaminia case
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