Singapore’s X-Press Feeders Challenges Sri Lankan Supreme Court’s $1bn Order Over X-Press Pearl Incident

Singapore-based X-Press Feeders has recently pushed back against the Sri Lankan Supreme Court’s decision to demand a payment of $1 billion within a year in relation to the 2021 X-Press Pearl maritime disaster. The company has raised concerns about due process violations, the unjust scapegoating of its crew, and the potential detrimental impact of this ruling on the global shipping industry.

The feeder giant has criticized the court for prematurely convicting the vessel’s master and local agents before the completion of trials and even before formal charges were filed in some instances. The vessel’s master, who has been stranded in Sri Lanka for over four years due to a court-imposed travel ban, has been unable to work or reunite with his family despite offering to pay the maximum fine for his alleged charges.

X-Press Feeders has expressed dismay over the court’s lack of opportunity for the accused parties to respond to the allegations brought against them, stating that they have been used as “human collateral” to ensure compliance with the court’s orders.

The X-Press Pearl, a new 2,700 TEU feeder vessel, sank off the coast of Colombo in June 2021 following a fire in a container carrying leaked nitric acid. The incident led to significant marine pollution, with hundreds of tons of plastic pellets polluting Sri Lanka’s beaches. Despite X-Press Feeders’ payment of over $150 million for wreck removal, cleanup efforts, and compensation to affected fishermen, the aftermath of the incident has continued to impact the region.

The operator has highlighted several failings on the part of Sri Lankan authorities, including the failure to raise concerns during official ship inspections prior to the fire and the refusal of ports in Qatar, India, and Sri Lanka to offload the leaking container before the fire erupted.

While the court acknowledged the lapses of the Marine Environment Protection Authority in not ordering the vessel offshore, which could have potentially minimized the damage caused, it did not assign any liability to the authorities.

Since the outset, Sri Lanka has indicated its intention to pursue one of the largest environmental claims in maritime history. Criminal proceedings were initiated against the vessel’s master, chief engineer, and local agents in 2021. The recent $1 billion compensation order sets a new precedent for interim payments in maritime cases, which X-Press Feeders believes will pose financial challenges for many shipping companies.

X-Press Feeders, which has been calling at Colombo for over four decades, has expressed concerns that the court’s ruling may lead to increased trade costs and hinder the country’s importers and exporters. The company is advocating for a balanced approach that considers both environmental restoration and the economic well-being of Sri Lanka’s population, while also respecting international maritime laws.