Maryland settles with ship owners, operators over bridge collapse Clio

Maryland settles with ship owners, operators over bridge collapse

 Clio

The State of Maryland has reached an in-principle settlement with Synergy Marine Pte Ltd., owner and operator of Grace Ocean Private Limited and M/V Dali, resolving some of the state’s claims arising out of the cargo ship’s alignment with the Francis Scott Key Bridge two years ago.

In announcing the development, Attorney General Anthony G. Brown did not reveal any details about the settlement, which is still being finalized. Brown said the settlement resolves claims brought by the state and its agencies, including the Maryland Transportation Authority, the Maryland Ports Authority and the Maryland Department of Environment, for the benefit of the vessel.

He said the settlement does not resolve any claims the state may have against shipbuilder Hyundai.

It follows a ruling in January that allowed cargo ship management company Synergy to now pursue claims under the Maritime Act 1851, which limits shipowners’ liability. The State of Maryland and the wrongful death claimants had sought to prevent Synergy Marine from invoking the Shipowners’ Limitation of Liability Act, arguing that Synergy did not qualify as a shipowner and therefore was not entitled to the limited liability protections granted by the law.

But U.S. District Court Judge James K. Bredahl denied the motion. The state did not challenge ship owner Grace Ocean’s invocation of maritime law. Accordingly, both Grace Ocean and Synergy are entitled to trial regarding their rights to restrain.

Judge allows Dali Management’s bid to limit liability for Baltimore bridge collapse

Under maritime law, a shipowner’s liability for maritime loss or accident is limited to the value of the ship and its cargo if the accident occurs without the owner’s knowledge. The stated value of the Dali is US$43.7 million.

Six construction workers died in a bridge collapse on March 26, 2024. The collapse brought a complete halt to shipping at the Port of Baltimore, disrupting the livelihoods of thousands of workers and creating economic ripple effects across the state.

The state filed a lawsuit in federal district court in Maryland in September 2024, saying the disaster was caused by negligence, mismanagement and reckless operation of a vessel that was unseaworthy and should not have left port. The state is seeking compensation on behalf of its agencies for the destroyed bridges, damage to the Patapsco River and surrounding environment, lost revenue and widespread economic harm to Maryland and its residents.

Grace Ocean argued that state officials bear “significant responsibility and negligence” given “decades of records” showing the state failed to properly protect the bridge, which was built in the 1970s and has minimally protected piers. The shipowner also sued shipbuilder Hyundai.

Judge approves $102 million in compensation for Baltimore bridge collapse

In October 2024, the Singaporean owner and operator of the Dali agreed to pay $102 million to resolve civil claims The United States seeks compensation for costs associated with the catastrophic bridge collapse. The payment reimburses federal funds used to remove large amounts of debris from the Port of Baltimore’s main channel, which remained closed for months after the collapse.

After the U.S. settlement was announced, a spokesperson for Grace Ocean said it was not an admission of responsibility or wrongdoing.

In November, the U.S. National Transportation Safety Board (NTSB) released a report that found loose wires in the ship’s electrical system caused circuit breakers to open unexpectedly. This in turn set off a chain of events that resulted in a blackout and loss of propulsion and steering for both ships near the 2.37-mile-long base bridge.

A case status report filed with the court on March 27, 2026, shows that other parties, including Chubb’s Ace American Insurance, which paid the state the $350 million limit on its bridge policy in August 2024, and certain personal injury and wrongful death claimants are also in settlement discussions.

Photo: Key Bridge Collision. National Transportation Safety Board photo.

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