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By:

Kaustubh Kale

10 September 2024 at 11:37:15 pm

Modak and the Art of Investing

As the aroma of freshly steamed Modaks fills homes during Ganesh Utsav, the festive spirit comes alive instantly. My mouth is already watering at the thought! The humble Modak, prepared with love to honour Lord Ganesha, may look simple from the outside. But anyone who has tried making one knows that a good Modak depends on several things coming together - the right ingredients, the right recipe, patience with the process, and finally, enjoying the result. Investing is surprisingly similar....

Modak and the Art of Investing

As the aroma of freshly steamed Modaks fills homes during Ganesh Utsav, the festive spirit comes alive instantly. My mouth is already watering at the thought! The humble Modak, prepared with love to honour Lord Ganesha, may look simple from the outside. But anyone who has tried making one knows that a good Modak depends on several things coming together - the right ingredients, the right recipe, patience with the process, and finally, enjoying the result. Investing is surprisingly similar. Choose the Right Ingredients A Modak is only as good as the ingredients that go into it. Fresh coconut, good-quality jaggery, properly prepared rice flour and the right flavours all contribute to the final result. Our investments and financial products are the ingredients of our financial plan. Equities, mutual funds, fixed income, gold and other investments each have a specific role to play. The objective is not to pick whatever appears most exciting at the moment, but to select suitable, good-quality investments that match our financial goals, time horizon and ability to take risks. Health and life insurance are equally important ingredients. Adequate coverage helps protect savings, the family, and their financial goals and dreams. Good ingredients provide the foundation. But ingredients alone are not enough. Get the Recipe Right You may have the finest ingredients in the kitchen, but if the proportions are wrong, the Modak may still not turn out well. The same applies to investing. Asset allocation is the recipe of a financial plan. Too much of one ingredient can spoil a Modak. Similarly, excessive concentration in one asset or too much money in low-return products can spoil a portfolio. Balance is key. A thoughtfully constructed portfolio brings different investments together in the right proportions. To keep asset allocation very simple - short-term goals can be planned through bank fixed deposits, recurring deposits and debt mutual funds. For long-term goals, one can consider hybrid mutual funds, equity mutual funds or direct stocks. Trust the Process Once the Modak is shaped and placed for steaming, constantly checking whether it is ready will not make it cook faster. Investors often make the same mistake. We keep checking markets, reacting to every correction, chasing recent performers or changing strategies because of short-term noise. Good investing requires patience and discipline. Invest regularly, review periodically and allow your financial plan enough time to work. Compounding is powerful precisely because it rewards those who remain invested for long periods. Sometimes, the best thing an investor can do is simply avoid unnecessary interference. Enjoy What You Have Created Finally comes the most important part - eating the Modak! The purpose of investing is not merely to accumulate the largest possible number on a statement. Wealth should eventually help us fulfil our goals, support our families, create financial security and enjoy life with greater peace of mind. A good Modak needs the right ingredients, the right recipe and trust in the process. A good investment journey needs exactly the same. This Ganesh Utsav, may Bappa bless us with the wisdom to make good financial choices, the patience to stay disciplined, and the prosperity to enjoy the fruits of our efforts. Ganpati Bappa Morya! (The author is a Chartered Accountant and CFA (USA). Financial Advisor. Views personal. He could be reached on 9833133605.)

The Slow Death of an Aging Freighter

Jun 10, 2025
4 min read

The sinking of MSC Elsa-3 exposes troubling questions about aging ships, weak inspections and maritime risk off India’s coast.

In the early hours of May 25, the MSC Elsa-3, a 28-year-old Liberian-flagged container feeder, sank mysteriously in moderate seas off the Kerala coast. She was on a short eight-hour voyage between Vizhinjam and Kochi, a relatively undemanding run for any seaworthy vessel. But Elsa-3 was not just any vessel. She had changed names nine times since her launch in 1997 - her first being Jan Ritscher - and appeared to be long past her prime. Her final journey ended 15 nautical miles from land, within India’s ‘contiguous zone,”’ an area where the state may act to protect its customs and environmental interests. It now also finds itself acting to address the fallout of what may have been a preventable disaster.


While carrying only 640 containers (less than half of her 1,730 TEU capacity), the Elsa-3 developed a 26-degree list to starboard before capsizing and sinking. The weather, by most accounts, was moderate, but hardly the sort that could fell a healthy vessel. Which begs the obvious question that how could a ship built to cross oceans fail on a coastal hop?


Parallels are being drawn to the 1987 Herald of Free Enterprise disaster in the English Channel, where a ferry capsized just 700 metres off the coast of Zeebrugge. That case revealed grave negligence. With Elsa-3, no definitive answers are yet available, but the circumstances are damning. Maritime experts point to several plausible causes.


One potential explanation is structural failure. A weakness in the hull could have allowed water to flood compartments, compromising buoyancy and triggering a catastrophic chain reaction. If the engine room was breached, the ship could have suffered a blackout, paralyzing all automated stability systems. Another culprit could be inaccurate container weights. Misdeclared containers can distort a ship’s balance, subjecting the hull to unsustainable shear and bending forces. In worst-case scenarios, they may tip the vessel past the point of no return, disabling its ability to self-correct - a principle known in nautical terms as ‘righting moment.’


Then there’s the phenomenon of synchronized rolling. If a vessel’s natural rolling rhythm coincides with wave patterns, it can amplify tilting to dangerous extremes. Navigational adjustments usually mitigate this risk. But that requires functioning systems and alert officers. The Elsa-3 was reportedly handicapped by an inoperative ballast transfer pump, which is a vital mechanism that allows the crew to counterbalance flooding or instability by shifting water between internal tanks. Whether this was due to equipment failure, human error, or both, is not yet clear.


For now, attention has turned to cleanup and salvage. The ship’s owners have contracted T&T Salvage, a U.S.-based specialist, to recover 360 tonnes of fuel oil and 84 tonnes of diesel from the sunken vessel. They will also attempt to retrieve any floating debris and rogue containers that are potentially lethal hazards for other vessels in the heavily trafficked shipping lanes of southern India. The Directorate General of Shipping (DGS), India’s maritime regulator, has issued alerts to mariners and local fishermen to steer clear.


But the monsoon complicates matters. Salvage operations now face the fury of southwest winds and rising seas. On the upside, the wreck lies relatively close to shore. Moreover, many of the containers on board were reportedly empty, which should ease recovery. Tugs towing recovered debris will benefit from the prevailing swell patterns, the one small mercy in an otherwise grim task.


Financially, the ship’s scrap value is modest. At a market rate of $340 per metric tonne, Elsa-3’s remains may fetch between $3 million and $3.5 million. That makes full salvage uneconomical. However, breaking up the hull and recovering high-value sections is feasible and likely. Whether the ship's insurers or owners foot the full cost remains to be seen.


The DGS, for its part, is taking no chances. It has set a hard deadline of July 3 for the salvage operation’s completion and is reportedly monitoring progress in 12-hour cycles. This unusual level of vigilance suggests that the Elsa-3 disaster may have rattled regulators. India’s maritime infrastructure, still rapidly expanding in anticipation of 2047’s centennial vision, has little patience for old, risky vessels limping between ports.


Officials have hinted that port inspections for aging ships will now be tightened. That would be a long-overdue corrective. The industry is riddled with substandard shipowners operating on thin margins and heavy appetite for risk. Ageing vessels are cheaper to charter and operate, especially under flags of convenience like Liberia’s. But the real cost in environmental risk, human lives and national credibility, is far higher.


In that sense, Elsa-3 may prove an inflection point. Much like the Herald of Free Enterprise forced European regulators to revamp safety checks, this incident could prompt Indian authorities to scrutinize the global shipping underbelly calling at its ports. It is a reminder that the ocean may be vast, but the margin for error is perilously narrow.


(The author, a former merchant navy sailor, is presently a shipping and marine consultant and member, Singapore Shipping Association)

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