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Early morning breaking news from international networks reported a serious marine casualty that resulted in the complete collapse of the Francis Scott Key bridge in the US port of Baltimore, Maryland. The sight was jarring as sections of the bridge fell like dominos in the early morning hours of March 26.
The investigation into the incident has only just begun, but here is what we know so far:
• The MV DALI, a containership carrying 9962 TEU, departed Baltimore at 1:00am localtime bound for Colombo, Sri Lanka;
• A little before 1:30am local time, the crew of the DALI reported to local authorities that they had lost power aboard the vessel;
• At 1:30 am local time the vessel collided with a pylon of the Francis Scott Key Bridgeover the Patapsco River. Shortly thereafter the bridge collapsed;
• All crew members and 2 pilots onboard have been accounted for;
• Local authorities initiated rescue efforts and the Maryland governor declared a state of emergency. The incident has been categorized by local authorities as a "mass casualty event."
For those of us in the P&I sector, a maritime casualty of this magnitude typically signals potential liabilities involving P&I cover, which in this instanceis reported to be provided by the Britannia P&I Club. Accordingly, Britannia can expect to face multiple claims arising out of the incident,including potential claims for personal injury (crew and third parties),property damage, cargo damage, possible general average losses and others – allat a hefty cost.
More specifically, authorities have confirmed that as many as 20 vehicles that were on the bridge at the time of the collision landed in the Patapsco River. Damages arising out of this, including, casualties, injuries, and vehicle losses, will inevitably form part of the claims levied against the vessel andher Club.
The damageto the bridge itself also implicates the FFO coverage (collisions with fixedand floating objects) provided by the P&I Club. In addition, we expect tosee claims for damages due to the interruption of port activities, loss of useof the bridge, and potential claims for charter loss and delay expenses forother vessels that were scheduled to navigate through that section of theriver.
Investigations are also underway regarding possible fuel leakage from the ship, posing a risk of pollution, costs for which would also fall under P&I coverage.
Given the expected cost of repair to the bridge, and other anticipated P&I claims, we anticipate that ultimate cost of the incident will likely dwarf the International Group Pool retention limit of USD 100 million.
From an insurance standpoint, H&M coverage will come into play for the ship's damage, followed by its removal (unless the vessel is declared a Constructive Total Loss, in which case the cost of a wreck removal would likely fall under the vessel’s P&I cover as well). A more comprehensive assessment of the legal and insurance aspects of this casualty will be possible upon completionof further investigation.
