Container ship companies will pay $102 million in bridge collapse costs

Two shipping companies involved in the fatal collapse of the Francis Scott Key Bridge in Baltimore have agreed to a $102 million settlement with the federal government.

The settlement by Grace Ocean Private Ltd. and Synergy Marine Private Ltd., which respectively owned and operated the container ship Dali, resolves the United States’ claim for $103 million in damages. The money will be returned to the agencies that responded after the Dali disaster collided with a bridge on March 26. These agencies include the U.S. Army Corps of Engineers and the U.S. Coast Guard.

The Department of Justice filed the lawsuit on September 18.

“This is a tremendous result that fully compensates the United States for the costs incurred in responding to this disaster and holds DALI’s owner and operator accountable,” said Assistant Attorney General Brian Boynton, chief of the department’s civil division, in a news release.

“The quick resolution of this matter also avoids the costs associated with pursuing this complex case for potentially years.”

Shortly after leaving its berth in Baltimore Harbor en route to Sri Lanka, the Dali lost power, regained power and lost power again before striking a bridge. The bridge collapsed into the canal, killing six construction workers. The loss of the bridge interrupted a critical transportation route and blocked container traffic to and from the port for over two months.

According to the Justice Department, federal, state and local agencies were involved and removed approximately 50,000 tons of steel, concrete and asphalt from the canal and the ship. The port reopened to commercial shipping on June 10.

The settlement does not include compensation for rebuilding the bridge.

“The State of Maryland built, owned, maintained and operated the bridge, and attorneys on behalf of the state filed their own claim for these damages,” the Department of Justice noted. “Under current law, funds recovered by the State of Maryland for bridge reconstruction will be used to reduce project costs that are primarily covered by federal taxes.”

The settlement is also separate from ongoing lawsuits brought against the two shipowners for negligence, including families of the workers who died and shippers and transportation companies claiming that their operations have incurred significant losses as a result of past and present supply chain disruptions caused by the collapse.

Click to see more FreightWaves articles by John Gallagher.

Related articles: :