Dali owners settle lawsuit with US Government

Owner and manager of the container ship, Dali, which struck the Baltimore’s Francis Scott Key Bridge in the early hours of 26 March, killing six construction workers and preventing access to the Port of Baltimore, have reached a settlement of almost $102 million with the US Government.

The US Justice Department announced yesterday that Grace Ocean Private Limited and Synergy Marine Private Limited, the Singapore-based owner and operator of the 9,971 teu container ship Dali, have agreed to pay $101,980,000 to settle a civil claim brought by the US Government. The settlement relates to costs incurred in responding to the catastrophic collapse of the bridge resulting from the allision.

Having left the Port of Baltimore soon after midnight on 26 March, the Dali proceeded down the Fort McHenry Channel but lost power twice before striking the bridge. Six construction workers died as parts of the bridge collapsed into the Patapsco River and the vessel became lodged, obstructing the channel and blocking all shipping in and out of the port. Collapse of the bridge also cut a critical transport artery across the river.

Federal, state, and local agencies responded and set about the removal of about 50,000 tonnes of steel, concrete and asphalt from the river and the ship, Temporary channels were set up to allow at least some traffic in and out of the port. The Fort McHenry Channel was eventually cleared by 10 June, enabling the port to reopen. 

Related:US Department of Justice files $100m suit against Dali shipowner, manager

This settlement is only a first step in a legal process likely to take years and does not include damages to cover reconstruction of the bridge. The state of Maryland has estimated that it will cost up to $1.9 billion to rebuild the bridge which is likely to take four years. Claims against the vessel’s owners and operators are expected to run into billions of dollars.

Responding to the settled lawsuit, Grace Ocean and Synergy Marine said they had been cooperating with the Federal Government from the outset.

In a statement today, the companies said: “The settlement strictly covers costs related to clearing the channel, which we would have been responsible for in any case, and is not indicative of any liability, which we expressly reject for the incident that led to the collapse of the Francis Scott Key Bridge  … Grace Ocean and Synergy are prepared to vigorously defend themselves in the limitation of liability proceedings pending before the Federal Court in Baltimore and to establish that they were not responsible for the incident.”