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Singapore firms agree to pay USD 102 million over Baltimore bridge crash

Grace Ocean and Synergy Marine, owner and operator of Singapore-registered boxship Dali, have agreed to pay USD 101,980,000 to resolve a civil claim brought by US for costs borne in responding to the bridge collapse.

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Singapore-registered “Dali” crashing into Baltimore bridge

The US Justice Department on Thursday (24 October) announced Grace Ocean Private Limited and Synergy Marine Private Limited, the Singaporean corporations that owned and operated the Singapore-registered container vessel Dali, have agreed to pay USD 101,980,000 to resolve a civil claim brought by the United States for costs borne in responding to the catastrophic collapse of the Francis Scott Key Bridge.  

The settlement resolved the United States’ claims for civil damages for USD 103,078,056 under the Rivers and Harbors Act, Oil Pollution Act, and general maritime law. 

The settlement monies will go to the U.S. Treasury and to the budgets of several federal agencies directly affected by the allision or involved in the response.

“Nearly seven months after one of the worst transportation disasters in recent memory, which claimed six lives and caused untold damage, we have reached an important milestone with today’s settlement,” said Principal Deputy Associate Attorney General Benjamin C. Mizer. 

“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.”

“This is a tremendous outcome that fully compensates the United States for the costs it incurred in responding to this disaster and holds the owner and operator of the Dali accountable,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. 

“The prompt resolution of this matter also avoids the expense associated with litigating this complex case for potentially years.”

In the early morning hours of 26 March, Dali left the Port of Baltimore bound for Sri Lanka. While navigating through the Fort McHenry Channel, the vessel lost power, regained power, and then lost power again before striking the bridge. 

The bridge collapsed and plunged into the water below, tragically killing six people. In addition to this heartbreaking loss of life, the wreck of the Dali and the remains of the bridge were left to obstruct the navigable channel, bringing all shipping into and out of the Port of Baltimore to a standstill. The loss of the bridge also severed a critical highway in the transportation infrastructure and blocked a key artery for local commuters.

The United States led the response efforts of dozens of federal, state, and local agencies to remove about 50,000 tons of steel, concrete, and asphalt from the channel and from the Dali itself. While removal operations were underway, the United States set up temporary channels to start relieving the bottleneck at the port and mitigate some of the economic devastation caused by the Dali. The Fort McHenry Channel was cleared by 10 June, and the Port of Baltimore was once again open for commercial navigation.

On 18 September, the Justice Department filed a civil lawsuit in the U.S. District Court for the District of Maryland, seeking over USD 100 million in damages from Grace Ocean and Synergy. The Department’s claim was part of a legal action that the vessel companies filed shortly after the tragedy, in which they seek exoneration or limitation of their liability to approximately USD 43.7 million. 

The  settlement is in addition to USD 97,294 recently paid by Grace Ocean  to the Coast Guard National Pollution Fund Center for costs incurred to abate the threat of oil pollution arising from the incident.  

The settlement does not include any damages for the reconstruction of the Francis Scott Key Bridge. The State of Maryland built, owned, maintained, and operated the bridge, and attorneys on the state’s behalf filed their own claim for those damages. 

Pursuant to the governing regulation, funds recovered by the State of Maryland for reconstruction of the bridge will be used to reduce the project costs paid for in the first instance by federal tax dollars.

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: National Transportation Safety Board
Published: 28 October 2024

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Legal

Florida bunker supplier indicted over alleged USD 5 mil SEA Card fuel purchase fraud

Owner of Independent Marine Oil Services, allegedly submitted fake invoices to US Navy ships and other vessels through the SEA Card Program, which allows US vessels to purchase fuel from suppliers at ports.

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3 days ago

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June 20, 2025

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The US Department of Justice recently said a federal grand jury in Miami returned an indictment recently charging a Florida business owner with multiple counts of wire fraud, money laundering, and forgery for his alleged role in orchestrating a scheme to defraud the US Department of Defense and other federal agencies. 

He allegedly did so by submitting altered and fake invoices to US Navy ships and other vessels through the SEA Card Program, which allows US vessels to purchase critical fuel from suppliers at ports around the world.

According to court documents filed in the Southern District of Florida, between August 2022 and January 2024, Jasen Butler, 37, of Jupiter, Florida, the owner of Independent Marine Oil Services LLC, submitted dozens of falsified documents to multiple U.S. warships — including the USS Patriot — demanding and receiving over USD 5 million dollars in payments for phony expenses that Butler had not incurred. 

These ships were attempting to purchase fuel in international ports such as Saudi Arabia, Singapore, and Croatia, among others. Butler also concealed his identity from government officials by using a false name and feigning employment by a fictitious fuel division of a different company. As alleged in the indictment, Butler used the millions in fraud proceeds to personally enrich himself and purchase multiple properties, including in Florida and Colorado. 

“This indictment sends a clear, public message: the Antitrust Division and its Procurement Collusion Strike Force under President Trump will not rest until all who defraud the brave men and women of the U.S. military and the American taxpayers receive swift justice,” said Assistant Attorney General Abigail A. Slater of the Justice Department’s Antitrust Division.

“Our office is steadfast in its commitment to prosecute individuals that seek to unjustly profit at the expense of the U.S. military,” said U.S. Attorney Hayden P. O’Byrne for the Southern District of Florida. “Such fraud undermines military readiness and jeopardizes the dedicated service members who selflessly defend our country.”

“Mr. Butler’s alleged involvement in unlawfully submitting fraudulent invoices related to U.S. naval ships receiving fuel during port visits is an affront to the warfighter and taxpayer,” said Special Agent in Charge Greg Gross of the Naval Criminal Investigative Service (NCIS) Economic Crimes Field Office. “NCIS remains committed to thoroughly investigating those who commit fraud impacting the Department of Navy.”

“Those who exploit the Department of Defense for personal gain — by inflating costs, falsifying bids, or manipulating the contracting process — will be relentlessly pursued and held accountable,” said Special Agent in Charge Jason Sargenski of the Department of Defense Office of Inspector General Defense Criminal Investigative Service (DCIS), Southeast Field Office. 

“DCIS and our law enforcement partners remain unwavering in our mission to protect taxpayer dollars and preserve the integrity of DoD contracts that directly support our nation’s warfighters.”

If convicted, Butler faces maximum penalties of 20 years in prison for each count of wire fraud, up to 10 years for each count of forgery, and up to 10 years for each count of money laundering. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. 

The case was investigated by the Coast Guard Investigative Service, Defense Criminal Investigative Service, and Naval Criminal Investigative Service.

 

Photo credit: Pepi Stojanovski from Unsplash
Published: 20 June, 2025

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Sanctions

UK slaps sanctions on bunker company and Russian shadow fleet of oil tankers

Government has imposed sanctions on 20 oil tankers and Rosneft’s bunker fuel trading subsidiary Rosneft Marine (UK) Limited, in its latest action targeting Russia’s financial, military and energy sectors.
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June 19, 2025

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The UK government on Tuesday (17 June) has imposed sanctions on 20 oil tankers and Rosneft’s bunker fuel trading subsidiary Rosneft Marine (UK) Limited, in its latest action targeting Russia’s financial, military and energy sectors.

The new sanctions crack down further on Russia’s shadow fleet, targeting 20 of oil tankers. The UK is also tightening the net around those who enable Putin’s illicit oil trade, sanctioning Orion Star Group LLC and Valegro LLC-FZ, for their role in crewing and managing shadow fleet vessels. 
The action also targets Russia’s military capabilities, hitting the military agency leading the development of Russia’s underwater intelligence gathering operations (GUGI), protecting the UK from attacks on subsea infrastructure, restricting Putin’s war machine and increasing our security at home. 

“These sanctions strike right at the heart of Putin’s war machine, choking off his ability to continue his barbaric war in Ukraine,” Prime Minister Keir Starmer said.

“We know that our sanctions are hitting hard, so while Putin shows total disregard for peace, we will not hesitate to keep tightening the screws.

“The threat posed by Russia cannot be underestimated, so I’m determined to take every step necessary to protect our national security and keep our country safe and secure.”

According to Rosneft’s website, Rosneft Marine UK, a Rosneft trading division, was established in 2010 to carry out bunker fuel trading for international cargo shipping.

In 2010, an office was opened in London, then in Beijing in 2012.

 

Photo credit: balesstudio on Unsplash
Published: 19 June, 2025

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Winding up

Singapore: Annual general meetings scheduled for Xihe Holdings subsidiaries

Annual general meetings of companies/creditors will be held for Xin Chun Shipping and Xin Dun Shipping on 1 July respectively, according to Government Gazette notices.
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5 days ago

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June 18, 2025

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Notices were published on the Government Gazette on Tuesday (17 June) regarding scheduled annual meetings, to be held by electronic means, for two Xihe Holdings subsidiaries Xin Chun Shipping Pte Ltd and Xin Dun Shipping Pte Ltd.

Annual general meetings for Xin Chun Shipping are to be held on 1 July at the following times:

For the company: 10am
For the creditors: 11am 

Annual general meeting for Xin Dun Shipping are to be held on 1 July at the following times:

For the company: 2pm
For the creditors: 3pm

AGENDA

  • To receive an update on the liquidation.
  • To receive an account of the Liquidators’ acts and dealings, and of the conduct of the winding up.

The following are the details of the liquidator:

Ho May Kee
Liquidator
c/o 8 Marina View
#40-04/05 Asia Square Tower 1
Singapore 018960

Xihe Holdings Pte Ltd and its subsidiaries are owned by the Lim family, who are also the owners of the embattled Hin Leong Trading.

Related: JMs: First creditors meeting of Xihe Holdings subsidiaries to be held in January 2021

 

Photo credit: Benjamin-Child
Published: 18 June, 2025

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