Nasdaq-listed StealthGas has settled the insurance claim for its blast-damaged LPG carrier Eco Wizard and is preparing to sell the vessel in its current condition, removing a 40,000 cubic metre (cu m) gas carrier from the active fleet and highlighting persistent security risks at Russian ports, according to Splash247.
The 40,000 cu m LPG carrier was damaged on July 6 last year while loading ammonia at Russia's Ust-Luga port. The incident triggered an ammonia leak and the evacuation of the 23 crew on board. No injuries were reported, Splash247 reported.
Insurance Claim Settled
StealthGas said the previously reported insurance matter relating to Eco Wizard has now been resolved. The company had earlier said the ship remained inoperable in Riga, Latvia, after leaving Russia under towage for further assessment. Temporary repairs had been completed and the required permits secured to leave Russia under towage for Latvia, where further inspections were carried out.
Vessel Sale
The company is now expected to dispose of the vessel to a third party in its damaged condition, with no monetary value expected from the sale after the insurance settlement. The sale effectively removes the vessel from service, reducing available LPG carrier capacity on the spot market.
Wider Security Context
The Eco Wizard incident was one of a series of unexplained blasts and suspected sabotage cases involving vessels linked to Russian trade. The vessel suffered hull damage during loading operations at Ust-Luga, one of Russia's key Baltic energy and chemical export hubs. Splash has previously reported Moscow-ordered hull inspections and security services vetting of foreign ships after a run of mystery explosions on tankers and gas carriers linked to Russian trades. The case has become part of a wider security concern around merchant ships calling at Russian ports.
Implications for Supply Chains
For freight forwarders and logistics managers, the incident underlines the ongoing operational and insurance risks for vessels calling at Russian Baltic ports. The loss of a 40,000 cu m LPG carrier — even temporarily — can tighten supply in the pressurized gas segment, potentially affecting spot rates on routes out of the Baltic. Shippers using Ust-Luga for ammonia or LPG exports should factor in additional inspection delays and heightened security protocols. Operators are advised to review their insurance coverage for cargo and hull when transiting Russian waters, and to consider alternative loading ports if vessel security cannot be assured.
| Key Facts | Details |
|---|---|
| Vessel | Eco Wizard (40,000 cu m LPG carrier) |
| Incident date | July 6 last year |
| Location | Ust-Luga, Russia (loading ammonia) |
| Damage | Hull damage, ammonia leak |
| Crew | 23 evacuated, no injuries |
| Current status | Inoperable in Riga, Latvia |
| Outcome | Insurance settled; vessel to be sold damaged at no expected monetary value |
The resolution of the insurance claim allows StealthGas to close the chapter on the vessel, but the security questions it raised remain unresolved for the wider shipping community.
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