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US sues owner, operator of Singapore-registered “Dali” for Baltimore bridge crash

Justice Department filed a civil claim against Singaporean firms Grace Ocean and Synergy Marine to recover over USD 100 million in costs the US incurred in responding to fatal disaster.

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Singapore-registered “Dali” crashing into Baltimore bridge

The Justice Department filed a civil claim on Wednesday (18 August) in the U.S. District Court for the District of Maryland against Grace Ocean Private Limited and Synergy Marine Private Limited, the Singaporean corporations that owned and operated the container ship that destroyed the Francis Scott Key Bridge.

In the early morning hours of March 26, the Motor Vessel 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 remnants of the bridge obstructed the navigable channel and brought all shipping into and out of the Port of Baltimore to a standstill. The loss of the bridge also severed a critical highway in our transportation infrastructure and a key artery for local commuters.

The suit seeks to recover over USD 100 million in costs the United States incurred in responding to the fatal disaster and for clearing the entangled wreck and bridge debris from the navigable channel so the port could reopen.

“The Justice Department is committed to ensuring accountability for those responsible for the destruction of the Francis Scott Key Bridge, which resulted in the tragic deaths of six people and disrupted our country’s transportation and defense infrastructure,” said Attorney General Merrick B. Garland. 

“With this civil claim, the Justice Department is working to ensure that the costs of clearing the channel and reopening the Port of Baltimore are borne by the companies that caused the crash, not by the American taxpayer.”

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 these removal operations were underway, the claim alleges that the United States also cleared a series of 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 June 10, and the Port of Baltimore was once again open for commercial navigation.

“The owner and operator of the Dali were well aware of vibration issues on the vessel that could cause a power outage. But instead of taking necessary precautions, they did the opposite,” said Principal Deputy Associate Attorney General Benjamin C. Mizer. “

Out of negligence, mismanagement, and, at times, a desire to cut costs, they configured the ship’s electrical and mechanical systems in a way that prevented those systems from being able to quickly restore propulsion and steering after a power outage. As a result, when the Dali lost power, a cascading set of failures led to disaster.”

Indeed, the lawsuit specifically asserts that none of the four means that should have been available to help steer the Dali — the propeller, rudder, anchor, or bow thruster — worked when they were needed to avert or even mitigate this disaster.

“This was an entirely avoidable catastrophe, resulting from a series of eminently foreseeable errors made by the owner and operator of the DALI,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. "The suit seeks to recover the costs incurred by the United States in responding to this disaster, which include removing the bridge parts from the channel and those parts that were entangled with the vessel, as well as abating the substantial risk of oil pollution.”

“In so many ways, the Key Bridge has symbolized the resilience of both the State of Maryland and our Nation. In a very real way, the Key Bridge was a pathway to the American Dream. A part of our culture is gone,” said U.S. Attorney Erek L. Barron for the District of Maryland. “Those responsible for the Key Bridge collapse will be held accountable.” 

The Justice Department’s claim also seeks punitive damages to deter the owner and operator of the DALI and others. 

During a press call announcing the Justice Department’s actions, Acting Deputy Assistant Attorney General Chetan Patil of the Civil Division explained, “This accident happened because of the careless and grossly negligent decisions made by Grace Ocean and Synergy, who recklessly chose to send an unseaworthy vessel to navigate a critical waterway and ignored the risks to American lives and the nation’s infrastructure.”

The Department’s claim is part of a legal action the owner and operator of the Dali initiated shortly after the tragedy, in which they seek exoneration or limitation of their liability to approximately USD 44 million.  

The claim on behalf of the United States 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 may file their own claim for those damages. Subsequently, 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 by federal taxpayer dollars.

The claims alleged by the United States are allegations only. There has been no determination of liability.

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: 20 September, 2024

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Bunker Fuel

SIBCON 2024: Bunker players sign SCMA pledge to drive progress within Maritime Singapore

Bunker players involved include Consort Bunkers, Equatorial Marine Fuel, Golden Island, Hong Lam Marine, Kenoil Marine Services, Marubeni International Petroleum and Sinopec Fuel Oil.

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SIBCON 2024: Bunker players sign SCMA pledge to drive progress within Maritime Singapore

Some 10 bunker players on Tuesday (8 October) signed a pledge with Singapore Chamber of Maritime Arbitration (SCMA) at the 23rd Singapore International Bunkering Conference and Exhibition (SIBCON).

The bunker players involved are Consort Bunkers Pte Ltd, Equatorial Marine Fuel Management Services Pte Ltd, Fratelli Cosulich Bunkers (S) Pte Ltd, Global Energy Trading Pte Ltd, Golden Island Pte Ltd, Hong Lam Marine Pte Ltd, Kenoil Marine Services Pte Ltd, Marubeni International Petroleum (S) Pte Ltd, Sinopec Fuel Oil (Singapore) Pte ltd and Victory Pte Ltd.

SCMA and the pledgees will work together to promote and enhance the capabilities  and opportunities within the Maritime Singapore community and ecosystem.

Among the aspirational goals embodied by the SCMA Pledge is that the pledgees give preferential consideration, where appropriate, for the use of the SCMA Arbitration Rules for the resolution of their maritime or international trade disputes.

The bunker players may also use its best endeavours to support the Maritime Singapore community and ecosystem, including contributing to the development and dissemination of best practices as well as providing support and opportunity to young maritime legal and dispute resolution professionals in the form of internships, mentorships, and educational seminars aimed at fostering the next generation of maritime leaders.

SCMA, a specialist arbitration institution, is the only arbitration institution in Singapore focused on maritime and international trade disputes.

It offers the maritime and international trade sectors a set of arbitration rules and guidelines which are flexible and cost effective.

Users of SCMA arbitration include maritime companies, international traders and commodity companies for the resolution of their disputes such as those involving charterparty, bunker, commercial sales, cargo, oil and gas, shipbuilding and ship repair.

 

Photo credit: Singapore Chamber of Maritime Arbitration
Published: 11 October, 2024

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Vessel Arrest

Singapore: Liberia-flagged tanker “Fair Star” placed under Sheriff’s arrest

Vessel was arrested at 9.05pm and is currently held at Eastern Petroleum Anchorage A; arresting solicitor listed was law firm Rajah & Tann Singapore LLP.

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An Liberia-flagged oil tanker, Fair Star, was arrested in Singapore waters on Saturday (5 October). 

The vessel was added to the list of vessels under Sheriff’s arrest in Singapore’s court system. 

According to the list, the vessel was arrested at 9.05pm and the arresting solicitor listed was law firm Rajah & Tann Singapore LLP. The ship is currently held at Eastern Petroleum Anchorage A. 

No details regarding the reason behind the arrest were provided in the list. 

 

Photo credit: MarineTraffic / Flare
Published: 9 October, 2024

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Winding up

Singapore: Final meeting scheduled for K3 Shipping Pte Ltd

Meeting will be held on 4 November at 9am to hear any explanation that may be given by liquidators, according to Government Gazette notice.

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The final meeting of K3 Shipping Pte Ltd, has been scheduled to take place on 4 November, according to the company’s liquidator on a notice posted on Friday (4 October) on the Government Gazette.

The meeting will be held at 9am at 600 North Bridge Road, #05-01 Parkview Square, Singapore 188778. 

It is being held for the purpose of having an account laid before the members showing the manner in which the winding up has been conducted and the property of the company disposed of and of hearing any explanation that may be given by the Liquidators.

The details of the liquidator are as follows:

Victor Goh
Khor Boon Hong
Marie Lee
Joint Liquidators
c/o Baker Tilly
600 North Bridge Road
#05-01 Parkview Square
Singapore 188778

According to Singapore-based B2B Sales Intelligence platform The Grid, the company’s main activity was in shipping, including chartering of ships and boats with crew.

Related: Singapore: K3 Shipping Pte Ltd to be wound up voluntarily

 

Photo credit: Benjamin-child
Published: 7 October, 2024

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