Operation Megaphone was the Canadian naval operation to board a Vincentian-flagged, American-owned merchant ship in the Atlantic, in order to recover $223 million worth of military materiel being transported back to Canada at the conclusion of operations in Kosovo.
Background
At the conclusion of Operation Kinetic, the Canadian contribution to a NATO peacekeeping force in Kosovo and Macedonia, the Department of National Defence contracted SDV Logistics Canada Ltd to transport military assets, including 580 vehicles, 390 sea containers of equipment and three Canadian soldiers who were escorting the cargo.
Prior to leaving Greece, three crew members had complained to authorities there, and the ship was restrained. Though it was not clear why the crew members complained, the ship was allowed to sail on 28 June after posting a US$30,000 bond.
During the voyage, a dispute between the various contracting parties arose over payments due, and Third Ocean claimed that $288,000 remained outstanding from Andromeda. As a result of the dispute, Third Ocean ordered the Russian captain of Katie, Vitaly Khlebnikov, not to enter Canadian waters.
Boarding
Negotiations continued between the Canadian government and the shippers, however an ultimatum was given and the three contractors failed to reach an agreement by a certain deadline, according to Art Eggleton, then the Minister of National Defence.
A diplomatic note was sent to the government of St. Vincent and the Grenadines, where the ship was registered, who authorized Canadians to board the vessel.
Defence Minister Eggleton described the action as "fully within the bounds of international law."
The Canadian Navy contracted Katie – and routinely contracts cargo ships – because it has no sea transport capability.