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Container Ship Dali Initiates General Average Declaration Process

The collapsed Francis Scott Key Bridge lay on top of the container ship Dali, Monday, April 15, 2024, in Baltimore. The FBI confirmed that agents were aboard the Dali conducting court-authorized law e

The owner of the container ship Dali, responsible for the tragic collapse of Baltimore’s Francis Scott Key Bridge, has taken steps to require owners of the cargo on board to contribute to the salvage costs. Grace Ocean Private Ltd., the Singapore-based owner of the vessel, has invoked a 'general average' declaration in accordance with maritime law.

Under this declaration, a third-party adjuster will determine the proportion of costs that each stakeholder must bear. This measure is commonly employed following maritime incidents to distribute the expenses of rescuing a vessel or its cargo among involved parties. In this instance, the focus is on the expenses related to refloating the Dali, which is currently lodged with sections of the collapsed bridge on its bow.

Efforts are underway to remove shipping containers from the Dali before lifting the wreckage and freeing the vessel. Additionally, work is being done to clear debris from the Port of Baltimore’s main channel, which has been obstructed for several weeks, disrupting commercial traffic through the key shipping hub.

Third-party adjuster to determine proportion of costs each stakeholder must bear.
Grace Ocean requires cargo owners to share salvage costs under general average declaration.
Efforts underway to remove containers from Dali and clear debris from Port of Baltimore.

The general average declaration is a customary practice with historical roots, serving as the ship owner’s latest move to mitigate its financial obligations in what could evolve into one of the most costly maritime disasters on record. Grace Ocean and the ship’s management company, Synergy Marine Group, have also sought to limit their legal liability through a petition filed post-incident, a standard procedure in cases governed by U.S. maritime law.

Following the collapse that claimed the lives of six roadwork crew members, legal representatives for some of the victims' families and a survivor have vowed to contest the petition and hold the companies accountable for the tragedy.

One of the cargo owners, Mediterranean Shipping Company, was notified of the general average declaration by Maersk, the Danish shipping firm that chartered the Dali. The declaration signals the ship owner’s expectation of 'extraordinary costs' for which they seek contributions from all salvaged parties.

Authorities have indicated that once the Dali is refloated, along with its cargo of approximately 4,000 shipping containers, it will return to the Port of Baltimore. The vessel set sail from the port on March 26 bound for Sri Lanka but encountered mechanical issues before colliding with a support of the Francis Scott Key Bridge, leading to the bridge's collapse into the Patapsco River.

Despite law enforcement efforts to halt bridge traffic following a distress call from the ship’s pilot, six workers lost their lives in the incident, with two individuals still unaccounted for. Both the FBI and the National Transportation Safety Board are conducting investigations to determine the factors that precipitated the disaster.

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