Grace Ocean and Synergy Marine have agreed to settle a USD 2.25 billion claim brought by the State of Maryland over the Dali’s collision with the Francis Scott Key Bridge in Baltimore in March 2024. Grace Ocean is the vessel’s owner and Synergy Marine its technical manager.
The settlement came just two days after the United States Department of Justice (DoJ) issued separate indictments against Synergy Marine entities and an employee in connection with the same incident. The two legal actions are independent of each other.
Scale of the settlement
The agreement marks a dramatic shift from the position both companies had initially taken. Grace Ocean and Synergy Marine had previously sought to limit their liability to just under USD 44 million under maritime law. The DoJ, in announcing its indictments, stated that the economic loss caused by the accident amounts to at least USD 5 billion.
Insurance implications
The International Group of P&I Clubs estimates the insured loss from the Dali incident at a minimum of USD 2.8 billion. Close to 90% of that figure is believed to relate to the replacement cost of the bridge itself.
The International Group comprises twelve member P&I clubs, which together provide marine liability coverage for around 90% of the world’s ocean-going tonnage. One of the group’s key functions is to share large loss exposures across its members.
The Dali casualty is on course to become the largest P&I club payout in history. It will surpass the USD 1.4 billion paid out following the Costa Concordia disaster of 2012, in which more than thirty people lost their lives.
The collapse of the Francis Scott Key Bridge remains one of the most costly maritime accidents in United States history, causing prolonged disruption to the Port of Baltimore and the wider regional economy.
