Maryland settles with owner and operator of ship that struck Key Bridge

Maryland has reached a settlement with the owner and operator of the cargo ship that crashed into Baltimore’s Francis Scott Key Bridge two years ago, causing the structure’s deadly collapse, state officials announced Thursday.

Attorney General Anthony Brown said the settlement in principle was reached with Grace Ocean Private Limited and Synergy Marine Pte Ltd, the owner and operator of the M/V Dali. The agreement resolves a portion of Maryland’s claims arising from the March 26, 2024, disaster.

“For two years, Maryland workers, families, and communities have carried the weight of a disaster that should never have happened,” Brown said. “Our work is not finished, but this settlement is an important step toward making Maryland whole.”

The announcement did not disclose financial details of the settlement. However, the companies confirmed in a joint statement that they had reached “two pivotal settlement agreements” with both the State of Maryland and ACE American Insurance Company. The settlement with the insurance company was valued at $350 million, matching the limit of Maryland’s policy.

“These agreements represent a significant step towards resolving the complex litigation surrounding this event,” the companies stated, adding they “remain open to negotiating in good faith to reach equitable settlements with other involved parties holding meritorious claims.”

The disaster occurred when the Dali, bound for Sri Lanka, experienced steering failure due to power loss and slammed into the bridge. The collision killed six road crew workers who were filling potholes during an overnight shift. The impact caused the 47-year-old bridge to collapse into the Patapsco River, closing a critical transportation artery and shutting down operations at one of America’s busiest ports.

Maryland filed claims in federal court in September 2024, alleging the disaster resulted from negligence, mismanagement, and reckless operation of a vessel that was not seaworthy. The state sought damages for the bridge’s destruction, environmental harm to the Patapsco River, lost revenues, and widespread economic losses.

The settlement does not resolve potential claims against the shipbuilder, Hyundai, the attorney general’s office noted.

The bridge collapse had devastating economic consequences for the region. It completely halted shipping at the Port of Baltimore, which handles more than 10 million tons of cargo annually, including being the nation’s busiest port for automobile imports and exports. Thousands of port workers, truckers, and logistics personnel saw their livelihoods disrupted, while supply chains throughout the Mid-Atlantic region were thrown into disarray.

The Maryland Transportation Authority has estimated that constructing a new bridge will cost between $4.3 billion and $5.2 billion, with completion not expected until late 2030. This extended timeline has raised concerns among business leaders and transportation experts about the long-term economic impact on the region.

The original Francis Scott Key Bridge was a vital piece of transportation infrastructure that allowed drivers to bypass downtown Baltimore. The 1.6-mile steel span, which opened to traffic in 1977 after five years of construction, was particularly important for the city’s port operations, connecting the industrial areas on either side of the harbor.

The settlement represents a significant milestone in the state’s efforts to recover from one of the most catastrophic infrastructure failures in recent U.S. history. However, the full economic impact of the disaster continues to reverberate through Maryland’s economy as the lengthy reconstruction process begins.

Transportation experts note that while the settlement provides important financial resources for recovery, the loss of this critical infrastructure link will continue to affect regional commerce, commuting patterns, and supply chains for years to come. Community leaders in neighborhoods experiencing increased traffic from detours have also expressed concerns about congestion, safety, and pollution impacts that may persist until a new bridge is completed.