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Reed Smith: Legal ramifications of Baltimore Bridge collision

Lawsuit raises legal and factual issues, including as to the owners’ and managers’ knowledge of the condition of Singapore-registered vessel “Dali” vessel, says lawyers Han Deng and Alice Colarossi.

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MPA: Singapore-registered ship in Baltimore bridge crash passed previous foreign port state inspections

Law firm Reed Smith on Thursday (26 September) shared comments of its transportation lawyers Han Deng and Alice Colarossi on the Baltimore bridge collision incident involving Singapore-registered vessel “Dali” in March:

Several claims have been filed against the owners and managers of the cargo ship in the aftermath of the incident, including (among others), on September 18, 2024, a USD 100 million claim by the U.S. Department of Justice, which alleged that the collapse was caused by the “outrageous, grossly negligent, willful, wanton, and reckless” conduct of the owners and operators, who they allege sent out an unseaworthy and poorly maintained vessel with a history of equipment failures to navigate a critical waterway.  

The government opposes the petition that was filed by the owners and managers of the vessel to limit their liability to approximately USD 44 million under the U.S. Limitation of Liability Act—a U.S. statute dating back to 1851 that allows ship owners to limit their total liability to the value of the vessel and pending freight after major incidents (while the Convention on Limitation of Liability for Maritime Claims does not apply in the United States).

The lawsuit raises a number of legal and factual issues, including as to the owners’ and managers’ knowledge of the condition of the vessel, and the circumstances and causes of the incident.

At the Port of Baltimore, ships are typically required to have a harbor pilot on board when navigating through the harbor and approaching or leaving the port. This is a common rule in many U.S. ports to ensure safe passage through waterways, such as crowded harbors or narrow canals. 

It requires tugs to assist ships in and out the port but does not mandatorily require extended escorts into the port’s channel or further into the bay. Tug escorts are only required in Baltimore for specific cargo types like oil or liquid natural gas, and for docking and undocking operations of larger ships with limited maneuverability. 

Harbor pilots or the ship’s operator can request extra tug services if and when they have safety concerns. Two harbor pilots were temporarily in charge of navigating the DALI on her exit from the Port of Baltimore.

Two tugboats also initially guided the ship out of the dock and then left the ship when she was safely inside the channel 20 minutes before the collapse. Minutes before hitting one of the bridge supports, the pilot called for tug assist, but it was too late.

The incident raises questions about safety measures for large ships passing under bridges, including whether additional tugboat escorts could prevent such accidents. Some have advocated for new regulations requiring tug escorts, changing protocols for tug escorts or standardizing escort rules across ports.

The rules currently vary depending on the port and state, and there are currently no harmonized tug escort requirements at the U.S. federal level, except in certain safety zones and for certain tankers. This could change. Note that there are no confirmed new regulations requiring towboat escorts for ships leaving the Port of Baltimore as a result of the collapse.

Implementing such new regulations could introduce complications, such as delays and additional costs.  Further insights may emerge from ongoing investigations, including a report from the National Transportation Safety Board, which could address the feasibility and potential benefits of towboat escorts in preventing similar incidents.

Related: FBI boards Singapore-flagged ship “Maersk Saltoro” in Baltimore
Related: US sues owner, operator of Singapore-registered “Dali” for Baltimore bridge crash
Related: NTSB report dismisses bunker fuel as cause of Singapore-registered “Dali” crashing into Baltimore bridge
Related: Baltimore bridge crash: Safety investigation to include contaminated bunker fuel as possible cause
Related: Baltimore bridge collapse: FuelTrust highlights bunkering activities of Singapore-registered “Dali”
Related: MPA: Singapore-registered ship in Baltimore bridge crash passed previous foreign port state inspections

 

Photo credit: Baltimore County Fire Department
Published: 27 September, 2024 

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Legal

Singapore withdraws remaining 127 charges against Hin Leong founder OK Lim

Lim Oon Kuin, also known as OK Lim, was issued a stern warning and a district court granted him a discharge amounting to an acquittal for these charges on 17 July.

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RESIZED Sora Shimazaki on Pexels

Founder of collapsed oil trader Hin Leong Trading, Lim Oon Kuin, also known as OK Lim, has had the remaining 127 charges against him withdrawn, according to The Straits Times on Monday (20 July). 

OK Lim was issued a stern warning and a district court granted him a discharge amounting to an acquittal for these charges, including those for cheating, on 17 July. The discharge means Lim cannot be prosecuted again for the same offences.

Lim, 84, is currently serving a 13½-year prison sentence after the High Court reduced his original 17½-year jail term in March 2026. He was convicted in 2024 on two cheating charges and one count of abetting forgery in a case prosecutors described as one of Singapore’s most serious trade finance frauds.

Lim was convicted in May 2024 of two charges of cheating the Hongkong and Shanghai Banking Corporation (HSBC) and one count of abetting forgery that proceeded to trial out of a total of 130 criminal charges.

He was first charged in court on 14 August 2020, and was subsequently handed further charges in court on 25 September 2020, 30 April 2021 and 24 June 2021 for his role in perpetuating fraud on various financial institutions. 

A total of 130 charges were eventually brought against him for cheating and forgery-related offences.

Related: Singapore: Hin Leong Founder OK Lim gets jail term slashed to 13.5 years

 

Photo credit: Sora Shimazaki
Published: 21 July, 2026

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Winding up

Singapore: Coastal Logistics Pte Ltd to be wound up voluntarily

Coastal Logistics was reportedly affiliated with troubled Singapore bunker player Coastal Oil (Singapore) Pte Ltd.

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RESIZED Drew Beamer

Several resolutions for Coastal Logistics Pte Ltd were made during an extraordinary general meeting held on 14 July, according to a notice in the Government Gazette on Friday (4 July).

The following resolutions were duly passed during the meeting:

As Special Resolution

  • That it has been proved to the satisfaction of the meeting that the Company cannot by reason of its liabilities continue its business and accordingly the Company be wound up voluntarily pursuant to Section 160(1)(b) of the Insolvency, Restructuring and Dissolution Act 2018 (No. 40 of 2018);

As Ordinary Resolutions

  • that Mr. Wong Pheng Cheong Martin and Ms. Koay May Yee, both care of FTI Consulting (Singapore) Pte Ltd, One Raffles Quay, #27-10 South Tower, Singapore 048583 be appointed as the joint and several Liquidators of the Company for the purpose of such winding up; and
  • that the Liquidators be at liberty to open, maintain and operate any bank account(s) or account(s) for monies received by them as Liquidators with such bank(s) as they deem fit; and
  • that a Committee of Inspection will not be formed.

Manifold Times previously reported Nicholas James Gronow, director of Heng Tong Fuels & Shipping and Coastal Logistics, filed statutory declarations for both companies stating the firms cannot continue their businesses due to liabilities.

Both companies were reportedly affiliated with troubled Singapore bunker player Coastal Oil (Singapore) Pte Ltd. 

In 2019, several vessels owned by both firms entered the sale & purchase (S&P) market in Singapore.

Related: Singapore: Director declares Heng Tong Fuels & Shipping’s inability to continue business
Related: Heng Tong Fuels & Shipping in court over DBS Bank bunker tanker loan
Related: Singapore: Bunker tanker “Coastal Neptune” arrested
Related: Heng Tong Fuels & Shipping, Coastal Logistics tankers enter S&P market

 

Photo credit: Drew Beamer
Published: 21 July, 2026

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Winding up

Singapore: Liquidator of Nan Shan Maritime Pte Ltd issues notice of dividend

Third interim dividend to admitted unsecured claims of Nan Shan Maritime is payable from 15 July, according to Government Gazette notice.

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RESIZED Drew Beamer

A notice of dividend for Nan Shan Maritime Pte Ltd, which is currently in creditors’ voluntary liquidation, was published on the Government Gazette on Wednesday (15 July). 

The following are the details of the notice:

Name of Company : Nan Shan Maritime (Pte.) Ltd.(In Creditors’ Voluntary Liquidation)
Unique Entity No. / Registration No. : 201701967H
Address of Registered Office : 10 Anson Road, #10-10, International Plaza, Singapore 079903
Amount per centum : 5.00 Per Centum of all admitted unsecured, claims
First and Final or Otherwise : Third Interim
When Payable : 15 July 2026
Where Payable : Entitlements will be made by way of cheque.

 

Photo credit: Drew Beamer
Published: 16 July, 2026

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