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Singapore ship owner to pay US$102M to settle lawsuit over Baltimore bridge collapse

The Singapore-based owner and manager of the cargo ship responsible for the Baltimore bridge collapse have agreed to a US$102 million settlement with the US Justice Department. The settlement covers federal clean-up costs but excludes rebuilding expenses, which are estimated at nearly US$2 billion.

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UNITED STATES: The owner and manager of the cargo ship involved in the collapse of the Francis Scott Key Bridge in Baltimore have agreed to pay US$102 million to settle a lawsuit brought by the US Justice Department.

The settlement, announced on Thursday (24 October), covers the federal government’s expenses for the clean-up operation but does not include damages for rebuilding the bridge.

Benjamin Mizer, a senior Justice Department official, called the agreement “an important milestone” nearly seven months after the tragic incident, which claimed six lives and caused widespread economic disruption.

The accident occurred in March 2024 when the Singaporean-owned cargo ship, Dali, struck a support column of the bridge, leading to its collapse.

The settlement follows a civil lawsuit filed by the Justice Department in September 2024.

The lawsuit, targeting the ship’s owner, Grace Ocean Private Ltd, and its manager, Synergy Marine Group—both based in Singapore—sought over US$100 million to recover the costs incurred in clearing debris and reopening the Port of Baltimore.

According to the Justice Department, the federal government led a massive effort, involving over 50 federal, state, and local agencies, to remove 50,000 tonnes of steel, concrete, and asphalt from the Fort McHenry Channel and the Dali itself.

The port remained closed to most maritime traffic for months before fully reopening in June 2024. The clean-up operation involved over 1,500 responders and specialists from around the globe.

Mizer emphasised the importance of the settlement, stating that it “ensures that the costs of the federal government’s clean-up efforts in the Fort McHenry Channel are borne by Grace Ocean and Synergy, not the American taxpayer.”

However, the costs for rebuilding the bridge, which are expected to approach US$2 billion, remain unresolved.

The state of Maryland has filed its own claim seeking compensation for those damages.

The collapse, which took place in March 2024, occurred when the Dali lost power due to poorly maintained electrical and mechanical systems, veering off course and striking a bridge column.

At the time, the ship was departing Baltimore en route to Sri Lanka.

Six road workers who were filling potholes on the bridge during an overnight shift were killed when the structure collapsed.

Following the disaster, Grace Ocean and Synergy sought to limit their legal liability for the incident to US$44 million, an amount the Justice Department described as “woefully inadequate.”

The department’s lawsuit provided a detailed account of the series of failures aboard the Dali, including excessive vibrations that led to transformer and electrical failure.

The complaint also highlighted jury-rigged repairs and cracked equipment, which contributed to the power loss that caused the ship to strike the bridge.

In addition to the federal lawsuit, several other claims remain unresolved, including those filed by the victims’ families, businesses impacted by the port’s closure, and other entities.

According to officials, these claims will ultimately determine the total financial liability of Grace Ocean and Synergy for the disaster.

FBI agents boarded the Dali in April 2024 as part of an ongoing criminal investigation into the circumstances leading to the collapse.

The Justice Department’s lawsuit, filed in September, revealed previously undisclosed details about the ship’s condition and the crew’s failure to address critical issues, such as the excessive vibrations, which were described as a “well-known cause” of electrical failure.

While the settlement resolves the Justice Department’s claim for clean-up costs, the broader legal battle surrounding the disaster remains ongoing.

The dismissal of the federal lawsuit is pending court approval, following a joint filing by the parties involved in the settlement.

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