The Baltimore bridge disaster caused by a Maersk-chartered container ship is already shaping up to be one of the biggest legal and insurance cases in recent history.
The 9,962-teu Dali (built 2015), owned by Grace Ocean in Singapore, suffered a reported loss of propulsion in the early hours of yesterday, collapsing the Francis Scott Key bridge.
Six construction workers are presumed dead.
One industry source told TradeWinds the incident was a “terrible tragedy for all those involved, and most of all for those who have lost loved ones.”
But the expert explained that while commercial matters are of course of secondary importance to the human consequences, an incident of this scale and complexity “will send ripples through the legal and insurance community larger than any single incident in recent times.”
From the moment of the crash, multiple parties will have been notifying their insurers across the globe.
Insurance teams will be leaping into action with their rapid response procedures, TradeWinds is told.
The Dali has cover from UK insurer Britannia P&I Club, which will perhaps be the most concerned party due to its covering of third-party liabilities.
“An incident of this nature involves so many third parties, from the owners of the bridge to the people on the bridge at the time of the incident and people with equipment on the bridge, through to any and all persons who may, directly or indirectly be affected by the incident, and the consequential delay and disruption to the port,” the source explained.
Managing the aftermath
There may also be damage to the cargo on board the Dali, as well as delays to undamaged goods on the ship.
The number of interested parties is likely to number in the thousands.
“All of these parties, many of whom will be backed by their own insurance, will be looking for someone to sue, who can compensate them for their losses,” TradeWinds is told.
The hull and machinery underwriters will also be exposed to claims for damage to the ship itself.
Vessel insurers will now be coordinating closely with their clients to manage the immediate aftermath of the incident.
That will include instructing salvors to manage the immediate recovery operation, including carefully ensuring that there is no risk of pollution.
There will also have to be coordination with local authorities, as well as instructions to lawyers and surveyors to attend the vessel and surrounding area to take evidence, so that the precise sequence of events can be captured for review and analysis.
While the information-gathering exercise will be completed relatively quickly, the analysis is likely to take weeks or months.
Local authorities will also have their own personnel in constant attendance, likewise gathering evidence for the inevitable public investigations and reports, the source told TradeWinds.
“The impact on the maritime insurance market, one way or another, is going to be a multi-million dollar exposure. At present, though, it is impossible to predict precisely how that liability is going to be apportioned,” the source said.
“And given the enormous losses which are plain to see, and the number of parties obviously involved, it will likely be years before the legal and insurance accounts are closed.”
Maersk as the carrier will likely be targeted for cargo claims under the Carriage of Goods at Sea Act (COGSA).
Manager Synergy Marine has said two local pilots were on board. They are shielded from litigation.
The biggest insurance case of recent years is probably the Ever Given, the Evergreen-chartered container ship that blocked the Suez Canal in a 2021 grounding.
Maersk sued Evergreen, owner Shoei Kisen and technical manager Bernhard Schulte Shipmanagement for around DKK 300m ($44m) over delays to its own vessels.
This claim was settled in December last year.
The 20,124-teu ship (built 2018) lodged in the Suez Canal for six days, with huge knock-on effects on world trade.
At least 400 ships were held up as a result of the blockage.
Estimates of the losses caused globally ranged from $30bn to $65bn.
Follow TradeWinds’ coverage of the disaster here
