Baltimore bridge collapse: Dali’s Singapore owner, manager file petition to cap compensation at US$43.6 million

THE Singapore-based owner and manager of the containership Dali have filed a petition in the US, seeking to exonerate themselves or limit the damages that could arise from the collapse of a Baltimore bridge after the vessel rammed into it.

According to the court application by Grace Ocean and Synergy Marine – the respective owner and manager of Dali –submitted on Monday (Apr 1) to the District Court in Maryland, the allision (striking of a vessel against a fixed object) was not due to any fault, neglect or lack of care on the part of the two companies, the vessel or any persons or entities for whose acts they may be responsible.

However, should they be liable, the companies are asking to invoke the Limitation of Liability Act to cap compensation at about US$43.6 million. This is the remaining value of the ship and its freight after taking into account repair and salvage costs.

Grace Ocean and Synergy Marine are also seeking consolidation of claims against them in the District Court in Maryland in the incident in which the Francis Scott Key bridge collapsed in the US city of Baltimore on Mar 26, leading to two lives lost and another four workers presumed dead.

“Sizeable” compensation to the tune of billions of dollars might be involved, given the extent of the damage to the infrastructure, its surrounding area and any loss of life, experts had earlier said.

However, the shipowner and manager are counting on a law to reduce their exposure.

The Limitation of Liability Act of 1851 is the US equivalent of limitation statutes found in most maritime countries, including Singapore, where the limitation law is based on a 1976 international convention, Professor Martin Davies of Tulane University Law School told The Business Times.

It allows a shipowner to petition to limit its liability to the value of the vessel at the end of the voyage, the maritime law academic said.

“The shipowner will lose the right to limit if it is found to be personally at fault. If it turns out that the incident was caused by some unseaworthy condition of the ship, the shipowner may well lose the right to limit under the law, because it is responsible for maintaining the seaworthiness of its ship,” Prof Davies added.

Should the shipowner lose the right to limit, its liability will still be limited to the death and personal injury claims, and the cost of replacing the bridge, but not the other economic consequences, he pointed out.

The charterer will not be liable as it is the commercial operator and therefore not responsible for navigational matters.

Dali had begun a voyage from Baltimore bound for Colombo, Sri Lanka, with an ultimate destination of Yantian, China, according to the petition from Grace Ocean and Synergy Marine outlining the circumstances that led to the incident.

The vessel was carrying 4,679 containers when it left berth at the Port of Baltimore at 12.40 am local time. About 35 minutes later, the cargo ship experienced a loss of power and propulsion in the shipping channel. Although efforts were made and power was regained momentarily, power was lost a second time shortly thereafter.

Dali drifted to starboard, then dropped anchor in response to the loss of power and propulsion.

At the time of the voyage – estimated to take 36 days – Dali was on charter to Danish carrier Maersk Line at a daily hire rate of US$32,500.

Britannia Steam Ship Insurance Association Europe, the insurer of Dali, is working with the vessel’s owner and US authorities on the investigation into the bridge collapse.