Singapore Firms Reach Settlement Over Baltimore Bridge Collapse

Grace Ocean and Synergy Marine have agreed to pay $102 million for the Baltimore bridge collapse, settling federal claims but leaving bridge reconstruction costs unresolved.

At a Glance

Grace Ocean and Synergy Marine will pay nearly $102 million in a settlement over the collapse of the Francis Scott Key Bridge.
The settlement covers federal cleanup costs but not bridge reconstruction.
The incident resulted in six deaths and significant port disruption.
Maryland is pursuing a separate claim for bridge rebuilding expenses.
The settlement has been reached just seven months after the disaster.

Settlement Details and Scope

In a swift resolution to the federal lawsuit stemming from the Baltimore bridge collapse, Grace Ocean Private Limited and Synergy Marine Private Limited have agreed to pay nearly $102 million. This settlement, announced by the Department of Justice on October 24, addresses claims under the Rivers and Harbors Act, the Oil Pollution Act, and general maritime law. The funds will be distributed to the U.S. Treasury and various federal agencies affected by the March 26 incident that claimed six lives and caused extensive damage to critical infrastructure.

Principal Deputy Associate Attorney General Benjamin C. Mizer said, “Thanks to the hard work of the Justice Department attorneys since day one of this disaster, we were able to secure this early settlement of our claim just over one month into litigation. This resolution ensures that the costs of the federal government’s cleanup efforts in the Fort McHenry Channel are borne by Grace Ocean and Synergy, and not the American taxpayer.”

The agreement covers federal costs for clearing debris and reopening the Port of Baltimore but excludes bridge reconstruction expenses.https://t.co/2AmMnobTUI

— The Epoch Times (@EpochTimes) October 25, 2024

Incident Overview and Response

The catastrophe unfolded when the container ship Dali, operated by Synergy Marine, lost power and collided with the Francis Scott Key Bridge, causing its collapse and obstructing the Fort McHenry Channel. This event not only resulted in loss of life but also severely disrupted shipping traffic and severed a crucial highway connection. In response, federal, state, and local agencies collaborated to clear over 50,000 tons of debris from the waterway and establish temporary channels to mitigate the economic impact.

The U.S. government spearheaded efforts to remove debris and create alternative shipping routes, with normal operations resuming by June. Additionally, Grace Ocean has paid nearly $100,000 to the Coast Guard for addressing the oil spill threat from the wreckage, demonstrating a commitment to environmental responsibility in the wake of the disaster.

Legal Implications and Future Actions

While this settlement marks a significant step in addressing the aftermath of the bridge collapse, it does not cover all associated costs. Notably, the expenses for reconstructing the Francis Scott Key Bridge are not included in this agreement. The State of Maryland is pursuing a separate claim to recover these substantial rebuilding costs, ensuring that all aspects of the disaster’s financial impact are addressed.

“This is a tremendous outcome that fully compensates the US for the costs it incurred in responding to this disaster and holds the owner and operator of the Dali accountable,” said DOJ Principal Deputy Assistant Attorney General Brian M. Boynton. “The prompt resolution of this matter also avoids the expense associated with litigating this complex case for potentially years.”

The swift resolution of this case, coming just over a month into litigation, demonstrates the efficiency of the Justice Department in handling complex maritime disputes. This outcome not only compensates the federal government for its immediate response efforts but also sets a precedent for accountability in maritime accidents affecting critical infrastructure.

Ongoing Investigations and Future Precautions

As the legal and financial aspects of this disaster continue to unfold, investigations into the cause of the Dali’s power loss remain ongoing. These inquiries aim to prevent similar incidents in the future and may lead to enhanced safety protocols for large vessels navigating near critical infrastructure. The tragedy has highlighted the need for robust emergency response plans and the importance of maintaining and protecting vital transportation links in major ports.

The Baltimore bridge collapse serves as a stark reminder of the potential consequences of maritime accidents and the critical importance of safety measures in shipping operations. As the port of Baltimore works towards full recovery, the lessons learned from this incident will likely influence maritime safety policies and infrastructure protection strategies across the United States and beyond.