Grace Ocean Private and Synergy Marine Private, the companies behind the ship that struck Baltimore’s Francis Scott Key Bridge, have agreed to a $102 mn settlement in the U.S. Justice Department’s civil suit. The suit claimed the incident was entirely preventable.
The companies clarified that the settlement does not imply liability. Instead, it strictly covers costs related to clearing Baltimore Harbor’s main shipping channel. Grace Ocean and Synergy confirmed that these costs are fully insured.
“The federal government’s claim was unique and differed significantly from typical liability claims, falling outside the standard limitation of liability framework,” the companies said in a joint statement. They noted their readiness to defend themselves in ongoing limitation of liability proceedings in federal court in Baltimore, asserting their non-responsibility for the incident.
The Dali struck the bridge on March 26, causing its collapse and resulting in six deaths. Before the collision, the ship experienced multiple power outages. Benjamin C. Mizer, DOJ Principal Deputy Associate Attorney General, highlighted that the operators were aware of vibration issues that could have triggered a power failure.
The DOJ’s lawsuit, filed in September, seeks to recover costs associated with removing 50,000 tons of debris, including steel, concrete, and the Dali itself, from the channel.
Mizer noted the significance of the settlement, calling it an “important milestone” nearly seven months after the disaster, which resulted in significant loss of life and damage.
Britannia P&I Club, involved in covering the Dali, commented on the incident in March.
The collapse of Baltimore’s Francis Scott Key Bridge on March 26, 2024, has led to significant economic and insurance repercussions.
The Francis Scott Key Bridge’s collapse disrupted a vital transportation link, severing a major interstate highway and temporarily closing the Port of Baltimore. This interruption affected the movement of goods and commuters, leading to estimated economic losses of $15 mn per day.
The port, handling over a million shipping containers annually, faced substantial operational challenges, impacting industries reliant on its services.
Beinsure’s analysts estimate that insured losses from the collapse could range between $2 bn and $4 bn, potentially making it the largest marine insurance loss ever recorded.
The bridge’s damage alone is projected to cost $1.2 bn, with additional insurance claims for wrongful deaths and business interruptions estimated between $350 mn and $700 mn. Major insurers and Protection & Indemnity (P&I) clubs are expected to bear the brunt of these claims.
In September 2024, the U.S. Justice Department filed a lawsuit seeking over $100 mn in damages from the ship’s owner and operator. By October, a settlement of $101.9 mn was reached to cover federal expenditures for emergency response and channel restoration. This settlement does not include reconstruction costs, which are subject to separate legal actions.
Maryland officials have announced plans to rebuild the bridge by fall 2028, with estimated costs ranging from $1.7 bn to $1.9 bn. Funding is expected to come from federal support, insurance payouts, and other reimbursements.
The Francis Scott Key Bridge collapse has had far-reaching economic and insurance consequences, highlighting the critical importance of infrastructure maintenance and the complexities involved in managing large-scale industrial accidents.
