Business, Feature, Freight News, Sea

Dali’s Owners Declare General Average

[ May 9, 2024   //   Gary G Burrows ]

The owners of the Dali, the 9,971-TEU containership that lost power struck the Francis Scott Key Bridge in Baltimore harbor, have declared “general average,” according to a spokesperson for vessel owner Grace Ocean Private Ltd.
General average is a principle in maritime law in which all stakeholders proportionately share any losses resulting from the sacrifice of ship and/or cargo to save the whole in an emergency. That means the ship owner and everyone with cargo on board are responsible for covering the shipper’s loss, not just those for whom sacrificed their possessions.
Those eye-popping losses won’t be better known until the entire salvage process is complete, but it will easily be in the millions of dollars. An insurance adjuster quoted in the Baltimore Sun said in some cases cargo owners will need to pay the same amount as their cargo in order to retrieve it. Usually, the cargo and containers aboard are worth more than the ship itself, meaning cargo owners will be responsible for more than half the salvage costs.
Many cargo owners are expected to file lawsuits, further deepening the litigation which could lead to the costliest maritime loss in history.
Grace Ocean and Synergy Marine, the Dali’s Singapore-based owner and manager, have sought relief from liability.
Further, general average only applies to the boat and cargo, not the bridge or related aspects. While the U.S. government has said it will clean up the mess in the Patapsco River and will pay to replace the bridge, Baltimore city officials are shoring up their position.
Baltimore mayor Brandon Scott and city officials have filed court papers alleging negligence by Synergy Marine Grace Ocean over the collapse of the Francis Scott Key Bridge, citing: “carelessness, negligence, gross negligence and recklessness” and describe the vessel as unseaworthy.
Much will be impacted by the determination of exactly what caused the ship to lose power and strike the bridge’s support pier. Cargo interests will likely attack the vessel’s seaworthiness.
An interesting fact to note: Grace Ocean has chosen to be represented by Richards Hoggs Lindley, who according to the Sun, was the adjuster for the Ever Given, which struck the Suez Canal in 2021, and the Ever Forward, which got stuck in the Chesapeake Bay in 2022.

Tags: Dali