Tears of Paradise in the Kuroshio Current: The WAKASHIO stranding accident off Mauritius and the challenges of an international compensation system - July 2020

Tears of Paradise in the Kuroshio Current: The WAKASHIO stranding accident off Mauritius and the challenges of an international compensation system - July 2020

On July 25, 2020, the clear blue waters off the coast of Mauritius were tragically stained with black fuel oil overnight. A large Panamanian-flagged cargo ship, the WAKASHIO, ran aground, spilling approximately 1,000 tons of fuel oil. The accident not only had a devastating effect on the country's ecosystem and tourism industry, but also exposed the limits of the international compensation system.

### Accident Summary

The "WAKASHIO" was en route from China to Brazil when it struck a coral reef in Mauritius. Although not carrying cargo, it was carrying approximately 3,894 tons of fuel oil, 207 tons of diesel fuel, and 90 tons of lubricating oil; by August 11, up to 2,000 tons of fuel had been spilled, causing extensive environmental damage. A few days later, waves and winds caused the hull to split in two, making it extremely difficult to recover the remaining fuel.

### Challenges of International Compensation Systems

This accident highlights the inadequacies of the international compensation system for oil spills caused by cargo ships. In the case of oil tankers, the International Oil Pollution Compensation Fund (IOPCF) has been established and can provide large amounts of compensation. However, the Bunker Convention applies to spills caused by cargo ships, and the maximum amount of compensation is set at approximately US$65.17 million (approximately ¥6.8 billion). On the other hand, when the IOPCF is applied, the amount of compensation is four times that amount, reaching approximately $286 million (approximately 30.2 billion yen).

Due to this difference in systems, victims of accidents involving cargo ships have a more difficult time receiving adequate compensation compared to tanker accidents. The Mauritius government is pursuing compensation claims against shipowners and charterers, but current international treaties limit the liability of shipowners, so compensation for damage may not be sufficient.

### Liability and Future Issues

In the case of the "Wakashiro" accident, the shipowner, Choshiki Kisen Kaisha, and the charterer, Mitsui O.S.K. Lines (MOL), were held responsible. However, under the current system, there is a limit to the amount of compensation that can be borne by the shipowner, which is insufficient to compensate local residents and restore the environment. This incident should be used as an opportunity to strengthen the compensation framework for oil spills caused by cargo ships and to establish a new international fund.

### Related Information

- Mauritius Heavy Oil Spill and International Compensation System
In July 2020, a large Japanese cargo ship, Wakashiro, ran aground off the coast of Mauritius and spilled fuel oil. Inadequacies in the international compensation system for oil spills caused by cargo ships have been pointed out.

- Legal Aspects of the Mauritius Oil Spill
An analysis of the case from the perspective of the international legal framework, damages, and compensation is provided.

- Actual examples of water quality accidents (oil spill prevention measures)
A case in which a truck cracked its fuel tank in the parking lot of a food and beverage retailer and spilled diesel oil. The causes and measures to prevent recurrence are detailed.

- Oil spill response manual for businesses (Hiroshima Prefecture)
It details emergency measures to prevent contamination of rivers and groundwater, and how to contact the relevant authorities.