Who pays for oil spill from Mauritius and how much?


TOKYO (Reuters) – A Japanese bulk carrier cut off a coral reef off the Indian Ocean nation of Mauritius on July 25, spilled some 1,000 tons of steel oil and declared a state of “environmental distress”.

A general view shows the bulk carrier MV Wakashio, which ran on a reef, at Riviere des Creoles, Mauritius, in this handout image obtained by Reuters on August 11, 2020. Command French Army / Handout via REUTERS T

Scientists say the shortage is the country’s worst ecological disaster, killing wildlife and damaging pristine waters that attract tourists from all over the world. The full impact is still lacking. As residents crawl to mop up the oil basins, they see dead monkeys and fish floating in the water as fuel-capped seabirds float ashore.

The following contains the legal implications.

THE SHIP AND OPERATOR

The owner and operator of the ship is Nagashiki Shipping, an Okayama, Japan-based private company that said Mauritius had claimed damages. It said in a statement that the cause of the accident was not known and would be fully investigated.

The MV Wakashio, a nearly 300 meter large Cape Size bulker used for carrying iron ore, with a dead weight of about 200,000 tons, was built in 2007, which means that it has to be double hulled and more protected against breakage .

With a crew of 20 sailors, the Panama flag ship was on course for Brazil to pick up iron ore, according to Mitsui OSK, which chartered the ship. The bulk carrier had dropped a cargo in Tianjin, China, before crossing the Indian Ocean.

The operator has not explained why they are sailing so close to the reef. PLAY RECOVERY

The ship carried about 3,800 tons of fuel oil along with diesel to power its engines. One of the oil tanks, which contained about 1,000 tons of fuel oil, broke after it ran over.

The MV Wakashio passed an annual inspection in March without any problems, the Japanese inspection agency ClassNK said.

Prime Minister Pravind Jugnauth of Mauritius said on Wednesday that almost all of the remaining oil had been removed from the ship, a confirmation from an earlier statement by Nagashiki that most of the oil still on board had been pumped out.

WHO IS RESPONSIBLE?

Under the International Convention on Civil Liability for Bunker Oil Pollution Damage, referred to as the BUNKER Convention and governed by the International Maritime Organization (IMO) since its entry into force in 2008, shipowners are liable for damage caused. by oil cakes. That means Nagashiki is liable instead of that Mitsui OSK.

In a June 13 statement, Nagashiki said it would “deal with compensation claims based on applicable laws”.

Akihiko Ono, executive vice president of Mitsui OSK Lines, apologized for the loss, but a spokesman told Reuters it had no responsibility for the crash.

LIABILITY

Compensation amounts paid by shipowners are governed by the 1976 Convention on Limitation of Liability for Maritime Claims and a subsequent amending convention agreed in 1996. The agreement also requires owners to ensure they have adequate insurance.

According to Toda Law Office in Tokyo, Mauritius has ratified the 1976 version, which limits payments to 2 billion yen ($ 18.7 million), while Japan has signed the 1996 document, which has an upper limit of 7 billion yen.

It will decide for each court judgment on compensation which is applicable in this case.

INSURANCE

The Wakashio is insured by Japan P&I Club, the country’s only organization that endorses protection and damage insurance for ocean travel and coastal shipping. On Wednesday, a Japan spokesman told P&I that it was “trying to make internal estimates” for how much the cleanup would cost.

The government of Jugnauth has said that it is still an estimate to come.

Japanese P&I could cover up to $ 1 billion, as it can count on the support of more than a dozen other unions of insurance insurers around the world, according to Koshiro Emura, an analyst at S&P Global Ratings.

APPEARANCE REJECTED

Removing the ship will be a delicate operation and will likely take months. France, which once ruled Mauritius as a colony, has said it will assist with the clean-up, while Japan has said it will send experts.

The International Maritime Organization provides technical advice.

($ 1 = 106.7400 yen)

Report by Yuki Nitta, Yuka Obayashi Tim Kelly, Sakura Murakami and Kiyoshi Takenaka; Written by Aaron Sheldrick; Edited by Nick Macfie

.