New Delhi: A series of recent maritime disasters, including the fire on MV Wan Hai 503 and the sinking of MSC Elsa 3, have exposed alarming gaps in global shipping regulations—especially the misuse of Flags of Convenience (FoC), which Indian authorities say are no longer just regulatory loopholes, but deliberate tools to evade accountability.
According to high-level government sources, India is bearing mounting ecological and social costs due to foreign-flagged vessels mishandled under lax oversight. These ships often bypass strict regulations by registering under FoC states such as Panama, Liberia, and the Marshall Islands—nations that offer minimal supervision in exchange for commercial registration fees.
Environmental Time Bomb
The MV Wan Hai 503, a Singapore-flagged ship owned by Taiwanese interests, caught fire off the Kerala coast in June 2025. It was carrying 2,000 tonnes of fuel oil, 240 tonnes of diesel, and 157 containers of hazardous cargo, including pesticides, lithium batteries, and flammable liquids. Several containers have already fallen into the sea, drifting toward Kerala’s coast, raising fears of toxic contamination and potential marine ecosystem collapse.
Experts warn that any breach of the fuel tanks could lead to a catastrophic oil spill, particularly dangerous during the monsoon when coastal currents intensify. The ship’s fire response was delayed due to untrained crew and poor emergency preparedness, resulting in the deaths of four seafarers during evacuation.
Regulatory Failure and Risk to Indian Coasts
Government insiders have criticized the existing inspection regime, noting that it often relies on documentation rather than physical inspection. For instance, the MSC Elsa 3 had 21 deficiencies flagged in Rotterdam, yet it continued operations and later sank with 13 undeclared hazardous containers. Despite mandatory digital declarations under the Sea Cargo Manifest and Transshipment Regulations (SCMTR) 2018, explosives aboard MV Wan Hai 503 were not reported.
Officials highlight how AIS (Automatic Identification System) manipulation—used to hide ship locations—is rampant among FoC vessels. In 2025 alone, GPS jump incidents spiked tenfold, from 600 km to 6,300 km, increasing the chances of maritime collisions and illegal activity at sea.
Flags of Convenience: Profits Over Safety
Today, nearly 45% of global shipping tonnage sails under FoC registries. These states frequently outsource safety checks to private agencies, allowing unfit vessels to sail. They also often fail to cooperate in international investigations, as seen in Liberia’s silence over India’s probe into the MSC Elsa 3 disaster.
The result: India foots the bill for ecological damage, rescue efforts, and cleanup operations. Following the MV Wan Hai 503 and MSC Elsa 3 incidents, Kerala imposed a fishing ban, devastating local livelihoods and cutting tourism revenue by 40% in affected areas.
Systemic Failures and the Way Forward
The growing number of such incidents highlights systemic issues—poor risk profiling, lack of crew training, use of outdated vessels, and intentional cargo misdeclaration. These practices not only threaten coastal states like India but also put global marine trade and ecosystems at risk.
With FoC states refusing accountability and delaying compensation, Indian officials are calling for urgent global reforms and stricter domestic oversight. Proposals include tighter digital tracking of hazardous cargo, compulsory on-ground inspections for foreign vessels, and enhanced cooperation on maritime safety enforcement.
As the risks intensify, experts warn that unless major international shipping protocols are overhauled, India and other coastal nations will continue to bear the brunt of an increasingly unregulated high seas.
