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Billions in damage claims pile up in response to Baltimore bridge disaster

Claims filed by public sector, families of the deceased, and businesses — including shipping

A long legal battle over the financial consequences of the Dali casualty lies ahead. The myriad claims filed in the Limitation of Liability Act case highlight just how far-reaching the fallout was, hitting everything from land-based businesses to ocean shipping to government coffers

THE DEADLINE to file claims arising from March’s allision of the containership Dali (IMO: 9697428) with Baltimore’s Francis Scott Key Bridge has arrived. The scale of total claims is predictably enormous.

There’s no way to put an exact figure on it yet. Many of the claimants did not specify how much they’ll ask for because damages continue to accrue.

But given the dollar amounts that have already been disclosed, and the broad scope of damages being sought overall, the final number will be in the billions.

Who pays — and how much — will hinge on the Limitation of Liability Act petition of the Dali manager Synergy Marine and owner Grace Ocean, which are seeking to cap payouts at a mere $43.7m, the value of the vessel.

Here’s a tally of the claims that will be fought over in the legal battle to come:

Public sector claims

The state of Maryland is seeking compensation for the entire cost of rebuilding the bridge, the removal of the destroyed bridge, all other costs incurred related to the casualty including “increased wear and tear on the roads, highways and other infrastructure”, plus all lost revenues (tolls, taxes) and damages for environmental impacts.

The state did not put a value on its overall claim, but the latest estimate from the Maryland Transportation Authority is that the new bridge alone will cost $1.7bn-$1.9bn.

The bridge was insured by Ace American Insurance Company for $350m. Ace paid the state in full and is seeking compensation from Synergy and Grace Ocean for that amount.

The US federal government is demanding $103m to cover $74m in costs for the US Army Corps of Engineers; $22m for the Coast Guard; $3.5m for the Department of Labor; $1.8m for the US Navy; $853,916 for the National Oceanic and Atmospheric Administration; and $827,620 for Marad.

The city of Baltimore wants compensation for the cost of rebuilding the bridge approaches and for city land that will be required in the reconstruction, and costs associated with the obstruction of the river, the interruption of road transportation for the city, higher maintenance caused by diverted road traffic, overtime payment for public employees, lost taxes due to the impact on city businesses, lost taxes due to the interruption of imports and exports, and the repair and reactivation of a submerged water main damaged in the allision.

Utility Baltimore Gas & Electric is separately seeking at least $2.5m related to damages to a natural gas pipeline and the required shut off of an electrical transmission line.

To put the scale of potential compensation demands in perspective, the city cited a study estimating that the Port of Baltimore created more than $70bn in direct and indirect economic value within the state in 2023.

The same study estimated that state and local government entities took in $2.8bn in direct and indirect tax revenues due to the port business last year.

The county of Baltimore is also seeking compensation, citing a similar list of economic grievances to those of the city: everything from added road maintenance to the loss of taxes and other economic benefits.

It noted that prior to the casualty, around 35,000 vehicles crossed the bridge each day, and that the bridge is not expected to be rebuilt until late 2028, meaning that economic fallout (and thus the need for compensation) will continue to accrue.

“The public, as well as governmental organisations in the vicinity of the bridge, including the county, face years of recovery and rebuilding to return to something resembling normalcy,” it said.

Claims for loss of life

Seven workers of Brawner Builders were conducting bridge repairs at the time of the allision; six were killed and one survived the fall.

Their families are seeking damages for pain, suffering, emotional distress “and all other damages applicable under the law”. They are each seeking “damages far in excess of the value of the vessel”, implying total potential damages much greater than $300m.

Business claims

Multiple businesses have filed claims, including six companies that filed jointly seeking class-action status for “all corporate entities or other businesses that have sustained increased costs and/or losses” as a result of the Dali casualty.

Shipping, terminal, cargo and cargo insurance interests have also filed claims.

Cargo insurers including Liberty Mutual, New York Marine and General Insurance, and certain underwriters at Lloyd’s of London have filed for compensation related to general average expenses and salvage claims.

American Sugar Refining, which owns and operates a Baltimore terminal that receives raw sugar, maintained that it has already suffered at least $6m in damages.

NYSE-listed Consol Energy, a major exporter of coal out of a terminal it owns and operates in Baltimore, filed a claim for damages that “are expected to exceed $100m”.

Nasdaq-listed Star Bulk filed for $756,403 in damages due to the inability of its vessel Star Triumph (IMO: 9254692) to load a cargo of coal.

Navision Shipping is seeking at least $462,000 in damages due to its time chartered bulker Phatra Naree (IMO: 9649861) being stuck in Baltimore following the bridge collapse. It said Phatra Naree’s sub-charterer stopped paying hire and attempted to redeliver the vessel, and that the bulker missed the laycan for its next sub-charter.

NYSE-listed liner operator Zim had 1,275 containers on Dali at the time of the allision, including 274 loaded with cargo under Zim bills of lading. It has provided a $3.1m guarantee in connection with the declaration of general average. It is seeking a judgment that it has no obligation to provide general average contributions, and that it should be compensated for all damages to its containers and for any claims it faces from cargo interests.

Mediterranean Shipping Company had 507 containers on board Dali under MSC bills of lading, as well as 942 empty containers. Like Zim, MSC is seeking compensation for damage to containers, for cargo claims, and for general average and other expenses.

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