Who gains from saving nature
Ledger 1 : 33 — For each dollar financing nature-based solutions in 2023, about $33 financed activities harmful to nature. (UNEP)
Cases / Oil spill · Iran · 2018–2022

Sanchi tanker collision and condensate spill, East China Sea, 2018

Nature's voice · report
My East China Sea carried a sheen of up to about 330 km² on 21 January 2018, according to the SOA as cited by Cedre.
Did nature suffer? Yes. Harm is on record.
Recorded
  • Tarballs reached 16 of my Japanese islands by 23 February 2018, and 90 tonnes of waste were collected, according to Cedre. Cedre
  • The pollution affected my atmosphere more than my marine environment, according to Cedre; the shares burned and spread could not be quantified, and impacts on fishing could be high. Cedre
  • Two Chinese state claims for oil-pollution damage to me, for monitoring, assessment, ecological damage and fishery damage, were small relative to the other claims, according to Xing and Zhu (2022). Xing and Zhu, Ocean and Coastal Management 225:106227
People
  • 3 people died.
    Joint investigation report; 29 more were missing.
What the record lacks: 2 none on record · 2 not disclosed · 1 not measured · 4 disputed · 3 unclear See the gaps

On 6 January 2018 the Panama-flagged tanker Sanchi, carrying 136,000 tonnes of condensate loaded at Assaluyeh, collided with the Hong Kong-registered bulk carrier CF Crystal in the East China Sea, burned and sank on 14 January; three crew died and 29 were missing. The spokesperson of the National Iranian Tanker Company (NITC) said in January 2019 that insurers had paid US$50 million of US$256 million in claims.

US$50 million of US$256 millionPaid by insurers against claims for pollution, diving and team recovery (NITC spokesperson, 6 January 2019)
As stated by NITC's spokesperson; the remainder was under review. NITC paid crew families from its own resources after the P&I club had not paid because of sanctions-related problems.

Status As of the latest sources (Xing and Zhu, 2022): claims against the limitation funds at the Shanghai Maritime Court far exceeded the limits; no apportionment judgment or final settlement was on record.

What?
The Panama-flagged tanker Sanchi collided with the Hong Kong-registered CF Crystal in the East China Sea on 6 January 2018, burned and sank on 14 January with 136,000 tonnes of condensate; three crew died and 29 were missing. China Maritime Safety Administration (hosted by the Hong Kong Marine Department)
Where?
About 30°51.1′N, 124°57.6′E in the East China Sea, some 300 km off Shanghai; Sanchi sank in about 115 m of water near the Ryukyu Islands. China Maritime Safety Administration (hosted by the Hong Kong Marine Department)
When?
Collision at about 1950 local time on 6 January 2018; sinking on 14 January 2018; tarballs on Japanese islands from 2 February 2018. China Maritime Safety Administration (hosted by the Hong Kong Marine Department)
Who?
Gained
  • Insurers — Foreign hull insurers settled claims; US$50 million of US$256 million in pollution, diving and recovery claims had been paid by January 2019 Tejarat News (citing ILNA)
Lost
  • NITC — Paid crew families from its own resources after the P&I club had not paid because of sanctions-related problems Eghtesad Online
  • NIOC — Estimated the financial damage at about US$110 million (cargo US$60 million, ship US$50 million) Cedre
  • Changhong Group (HK) — Set up limitation funds at the Shanghai Maritime Court; claims far exceeded the limits Xing and Zhu, Ocean and Coastal Management 225:106227
Harmed
Why?
The joint investigation report states that its purpose is not to determine liability or apportion blame. China Maritime Safety Administration (hosted by the Hong Kong Marine Department)
How?
The tanker's cargo tanks were breached, fire and explosions followed, and the ship sank; compensation was subject to limitation under China's Maritime Law, and the CLC and IOPC Funds regime did not apply to condensate. Xing and Zhu, Ocean and Coastal Management 225:106227
6 of 6 questions answered from the record

What happened

The record, in order.

The Panama-flagged tanker Sanchi, loaded with condensate at Assaluyeh for Daesan in South Korea, collided at about 1950 local time on 6 January 2018 with the Hong Kong-registered bulk carrier CF Crystal at about 30°51.1′N, 124°57.6′E, some 300 km off Shanghai. The cargo tanks were breached; fire and explosions followed, and Sanchi sank on 14 January 2018 in about 115 m of water near the Ryukyu Islands. The joint investigation report of China's Maritime Safety Administration with Iran, Panama and Hong Kong, dated 10 May 2018, recorded that three crew died and 29 were missing and that 'resulting pollution occurred'; it states that its purpose is not to determine liability or apportion blame.

Cedre recorded a cargo of 136,000 tonnes of condensate and bunkers of 1,000 to 2,000 tonnes of IFO 380. A sheen of up to about 330 km² was reported on 21 January 2018 by the State Oceanic Administration (SOA); tarballs reached Japanese islands from 2 February 2018, and by 23 February 16 Japanese islands were affected and 90 tonnes of waste had been collected. Cedre wrote that the pollution 'affected the atmosphere more than the marine environment', that the shares burned and spread could not be quantified, and that fishing impacts 'could be high'.

The National Iranian Oil Company estimated the financial damage at about US$110 million: US$60 million for the cargo and US$50 million for the ship. On 9 January 2018 the president of Central Insurance of Iran, Abdolnasser Hemmati, gave the hull insurance shares as a Norwegian insurer 70%, Alborz 20% and Mellat 10%. In December 2018 Business Insurance, citing the Iranian Insurers Syndicate, reported that foreign insurers had settled claims, with total claims expected near US$200 million, cargo worth US$60 million and hull insured for US$32 million; Skuld was the lead hull insurer, with 11 foreign insurers covering 70%.

On 6 January 2019 NITC's spokesperson, Capt. Mohsen Bahrami, said claims for pollution, diving and team recovery were 'two hundred and fifty-six million dollars', of which US$50 million had been approved and paid by insurers and the rest was under review; he said the foreign hull insurers had met their obligations and about one-third was outstanding from Iranian insurers. Eghtesad Online reported in September 2018 that the P&I club had not paid crew families because of sanctions-related problems and that the NITC board had approved paying them from its own resources, in US dollars, in equal amounts for all crew; by January 2019 half the families had received cheques. Bahrami said sanctions had 'made the process harder' but had not stopped payments, and that compensation from CF Crystal depended on the court ruling on fault and could take several years.

Xing and Zhu (Ocean and Coastal Management, 2022) recorded that the owner of CF Crystal, Changhong Group (HK), set up limitation funds at the Shanghai Maritime Court, with maritime claims limits of about 11 million SDR for Sanchi and about 6.4 million SDR for CF Crystal, and that claims in case (2018) SH72-117 'far exceeded the limit'. Of ten claims in China Judgement Online by the end of 2021 only two concerned oil-pollution damage: one by the East China Sea Bureau of the Ministry of Natural Resources (monitoring, assessment, ecological damage) and one by the Ministry of Agriculture and Rural Affairs (fishery damage), both small relative to the other claims.

  1. 2018Collision (6 Jan); insurance shares stated (9 Jan); Sanchi sinks (14 Jan); sheen up to about 330 km² (21 Jan); tarballs reach Japanese islands (from 2 Feb); 16 Japanese islands affected (23 Feb); investigation report (10 May); NITC board approves paying crew families (Sep); foreign insurers settle claims (reported 4 Dec)
  2. 2019NITC spokesperson gives claims of US$256 million, of which US$50 million paid by insurers (6 Jan)
  3. 2021Ten claims in China Judgement Online by the end of the year, two concerning oil-pollution damage
  4. 2022Xing and Zhu publish their assessment of the incident's impact on Chinese law

What was said

Claims, in the words of those who made them.

“resulting pollution occurred”

“affected the atmosphere more than the marine environment”

Cedre, on the pollution · 2018 · Cedre

“could be high”

Cedre, on fishing impacts · 2018 · Cedre

“two hundred and fifty-six million dollars”

Capt. Mohsen Bahrami, NITC spokesperson, on claims for pollution, diving and team recovery · 6 January 2019 · translated from Persian · Tejarat News (citing ILNA)

“made the process harder”

Capt. Mohsen Bahrami, NITC spokesperson, on sanctions and payments · 6 January 2019 · translated from Persian · Tejarat News (citing ILNA)

Where accounts differ

Each party's account, side by side, with its source. The record does not settle these points; it shows them.

Effect of sanctions on payments to crew families
Press and investigations
Eghtesad Online (4 September 2018)

The P&I club had not paid because of sanctions-related problems, and the NITC board approved paying families from its own resources.

Eghtesad Online
Company or project
NITC spokesperson Capt. Mohsen Bahrami (6 January 2019)

Sanctions made the process harder but did not stop payments.

Tejarat News (citing ILNA)
Total claims arising from the collision
Press and investigations
Business Insurance, citing the Iranian Insurers Syndicate (4 December 2018)

Total claims were expected near US$200 million.

Business Insurance
Company or project
NITC spokesperson (6 January 2019)

Claims for pollution, diving and team recovery were US$256 million.

Tejarat News (citing ILNA)

How it looked

What was shown, beside what was recorded.

Shown

  • Foreign hull insurers met their obligations; about one-third was outstanding from Iranian insurers
    NITC spokesperson Capt. Mohsen Bahrami, 6 January 2019 · Tejarat News (citing ILNA)
  • The NITC board paid crew families from its own resources, in US dollars, in equal amounts for all crew
    Eghtesad Online, 4 September 2018 · Eghtesad Online

Recorded

  • Collision about 1950 local time on 6 January 2018 at about 30°51.1′N, 124°57.6′E; Sanchi sank on 14 January 2018 in about 115 m of water near the Ryukyu Islands.
    China Maritime Safety Administration (hosted by the Hong Kong Marine Department)
  • Cargo 136,000 tonnes of condensate; bunkers 1,000–2,000 tonnes of IFO 380; sheen up to about 330 km² (21 January 2018); 16 Japanese islands affected and 90 tonnes of waste collected by 23 February 2018.
    Cedre
  • The investigation report states that its purpose is not to determine liability or apportion blame.
    China Maritime Safety Administration (hosted by the Hong Kong Marine Department)
  • NIOC estimate of financial damage about US$110 million (US$60 million cargo, US$50 million ship).
    Cedre
  • Hull insurance shares (Hemmati, 9 January 2018): a Norwegian insurer 70%, Alborz 20%, Mellat 10%. Skuld was lead hull insurer, with 11 foreign insurers covering 70% (Business Insurance, 4 December 2018).
    Business Insurance
  • Claims for pollution, diving and team recovery of US$256 million, of which US$50 million was approved and paid by insurers (NITC spokesperson, 6 January 2019).
    Tejarat News (citing ILNA)
  • Xing and Zhu (2022) record that the 1992 Civil Liability Convention and IOPC Funds regime did not apply because condensate is a non-persistent oil, that limitation under China's Maritime Law (1992) applied, and that mainland China had not ratified LLMC 76/96.
    Xing and Zhu, Ocean and Coastal Management 225:106227
  • Cedre: the shares of cargo burned and spread could not be quantified.
    Cedre

Who gained

Money that reached nature, beside money that stayed elsewhere.

Reached nature or the ground

Not published
Ecological and fishery damage claims by two Chinese state bodies—
Amounts not given; both were small relative to the other claims (Xing and Zhu, 2022).

Gained elsewhere

Not totalled
Claims for pollution, diving and team recovery (NITC spokesperson, January 2019)$256m
Paid by insurers of the claims above$50m
Total claims expected (Iranian Insurers Syndicate via Business Insurance, December 2018)$200m
NIOC estimate of financial damage: cargo$60m
NIOC estimate of financial damage: ship$50m
Hull insured for$32m
Currency: USD · Window: 2018–2019. All figures cover the same period. * Estimate built from cited figures.

Responses on record

  • nitc (6 January 2019): Its spokesperson said claims were US$256 million, of which US$50 million had been paid by insurers, that sanctions made the process harder but did not stop payments, and that closing the case could take several years. · Tejarat News (citing ILNA)
  • nitc (September 2018): Its board approved paying crew families from its own resources, in US dollars, equal for all crew. · Eghtesad Online
  • china-msa (10 May 2018): The joint investigation report recorded that pollution occurred and stated that its purpose is not to determine liability or apportion blame. · China Maritime Safety Administration (hosted by the Hong Kong Marine Department)

In court and with insurers

Every proceeding and every insurer decision on record.

Lawsuits and rulings

  1. 2018–Outcome not on record
    Limitation funds and claims at the Shanghai Maritime Court
    Shanghai Maritime Court · Civil · Claimants including the East China Sea Bureau of the Ministry of Natural Resources and the Ministry of Agriculture and Rural Affairs → Changhong Group (HK) Ltd, owner of CF Crystal

    Changhong Group (HK) set up limitation funds, with limits of about 11 million SDR (Sanchi) and about 6.4 million SDR (CF Crystal); claims in case (2018) SH72-117 'far exceeded the limit'. Of ten claims in China Judgement Online by the end of 2021, two concerned oil-pollution damage. No apportionment judgment is on record. Xing and Zhu, Ocean and Coastal Management 225:106227

Insurers

  1. 2018Paid$32m hull insured for (million)
    Skuld (lead) and 11 foreign insurers, hull cover 70% → NITC / owner of Sanchi

    Business Insurance reported on 4 December 2018, citing the Iranian Insurers Syndicate, that foreign insurers had settled claims; NITC's spokesperson said in January 2019 that the foreign hull insurers had met their obligations. Business Insurance

  2. 2019No policy found
    Alborz Insurance (20%) and Mellat Insurance (10%), hull cover → NITC / owner of Sanchi

    Central Insurance of Iran's president gave the shares on 9 January 2018; NITC's spokesperson said in January 2019 that about one-third was outstanding from Iranian insurers. Business Insurance

  3. 2019Partly paid$50m paid by insurers of US$256 million in claims (million)
    Insurers (not named) for pollution, diving and team-recovery claims → NITC

    NITC's spokesperson said US$50 million had been approved and paid by insurers and the remainder was under review. Tejarat News (citing ILNA)

  4. 2018No policy found
    P&I club (not named) → NITC / crew families
    Stated reason: Sanctions-related problems (Eghtesad Online)

    The P&I club had not paid crew families by September 2018; the NITC board approved paying them from its own resources, and by January 2019 half the families had received cheques. Eghtesad Online

  5. 2018Self-insured
    NITC (own resources) → Crew families

    NITC paid equal amounts in US dollars to all crew families from its own resources. Eghtesad Online

What nature saw

Outcomes measured on the ground, and nature's note.

Nature's report opens this page. Below: further outcomes measured on the ground.

Condensate cargo
136,000 t
Cedre; bunkers 1,000–2,000 t of IFO 380
Sheen
Up to about 330 km²
SOA, 21 January 2018
Japanese islands affected
16
By 23 February 2018; 90 t of waste collected (Cedre)
Claims paid by insurers
US$50 m of US$256 m
NITC spokesperson, 6 January 2019

What we don't know

Undisclosed, unproven, untried: recorded as data.
No court caseKey earnings undisclosedDeaths reported

Money

  • None on record Ecological and fishery damage claims by two Chinese state bodies — Amounts not given; both were small relative to the other claims (Xing and Zhu, 2022).

Court

  • Unclear Limitation funds and claims at the Shanghai Maritime Court: outcome not on record.

Insurers

  • Unclear Alborz Insurance (20%) and Mellat Insurance (10%), hull cover: no decision on record.
  • Unclear P&I club (not named): no decision on record.

Accounts

  • Disputed Effect of sanctions on payments to crew families
  • Disputed Total claims arising from the collision

Record

  • None on record None on record: a final settlement or court ruling on fault between the two vessels as of October 2026; the Shanghai Maritime Court case on the limitation funds had no apportionment judgment on record.
  • Not disclosed Not disclosed: the final amounts paid to the Chinese state ecological claimants.
  • Not measured Not measured: the shares of the condensate that burned and that spread, which Cedre said could not be quantified.
  • Disputed Figures differ: total claims were expected near US$200 million in December 2018 (Business Insurance) and were given as US$256 million in January 2019 (NITC spokesperson).
  • Disputed Figures differ: Cedre gives a cargo of 136,000 tonnes of condensate; some other reports give 111,000 or 113,000 tonnes.
  • Not disclosed Not disclosed: the name of the P&I club that had not paid crew families because of sanctions-related problems, according to Eghtesad Online (September 2018).

Did the harm stop?

The tanker burned and sank on 14 January 2018; tarballs reached Japanese islands from 2 February and 16 islands were affected by 23 February 2018.

Who paid?

Insurers had paid US$50 million of US$256 million in claims by January 2019, according to NITC's spokesperson; NITC paid crew families from its own resources after the P&I club had not paid because of sanctions-related problems; claims against the CF Crystal side were subject to limitation funds in Shanghai.

Sources

Voices on record: — Company or project— Government and regulators— Courts✓ Press and investigations— Communities and civil society✓ Researchers✓ International bodies

Press and investigations

Researchers

International bodies

  1. Report on the Investigation of the Collision between SANCHI and CF CRYSTAL (China MSA, Iran, Panama, Hong Kong)
    China Maritime Safety Administration (hosted by the Hong Kong Marine Department) · 2018-05-10

Connected cases

Related matters, and cases linked to this one through the same organisations, with the role each played in both.
Terms used on this page

Insurance

Hull insurance
Insurance on a ship itself, covering damage to or loss of the vessel.
IOPC Funds
The International Oil Pollution Compensation Funds: intergovernmental funds, financed by companies that receive oil by sea, that pay for tanker oil-spill damage above the shipowner's liability limit.
P&I club
A protection and indemnity club: a mutual association of shipowners that covers members' liabilities to third parties, including oil pollution.
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