New Bill To Hold Foreign Vessel Owners Accountable For Maritime Accidents In U.S. Waters

MV Dali — Image Credits: USACE Baltimore/X

U.S. Representative John Garamendi (D-CA-08) has introduced a new bill that would enhance the accountability and financial responsibility of foreign vessel owners for maritime accidents in US waters.

The bill, “Justice for Victims of Foreign Vessel Accidents Act” (H.R.9348), was introduced in the House alongside U.S. Representative Hank Johnson (D-GA-04). It aims to prevent foreign shipowners from avoiding major liability payments.

The decision directly responds to the March 2024 collapse of the Francis Scott Key Bridge in Baltimore, struck by the Singapore-flagged containership M/V Dali. The tragedy killed six bridge construction workers and closed the Port of Baltimore for several months, affecting regional commerce.

Garamendi strongly objected to the concept that foreign vessel owners could avoid financial responsibility for the damage caused by the collapse of the Francis Scott Key Bridge in Baltimore. He stated that access to American ports and consumers is a privilege, not a right and that the M/V Dali owners must take full financial responsibility.

Garamendi further added that the owners need to break out their chequebooks, call their insurance company, and pay their fair share of the bridge replacement costs and compensation to the families of the six workers who tragically lost their lives.

The proposed bill would increase the liability limit for foreign-flagged ships to up to ten times the value of the vessel and its cargo. It represents a substantial divergence from current U.S. law, particularly the Limitation of Liability Act of 1851, which permits vessel owners to limit their liability to the financial value of the vessel and its cargo.

The bill, however, maintains current liability limits for US-flagged ships. The bill would also apply to March 25, 2024, the night before the Francis Scott Key Bridge collapsed.

The clause is explicitly aimed at Grace Ocean Private Ltd., Dali’s Singapore-based corporate owner, and Synergy Marine Group, the vessel’s manager, who jointly filed a petition in the United States District Court for the District of Maryland seeking to limit their liability to $43.7 million after the incident.

The estimated cost of replacing the collapsed bridge is $1.7 billion, with the Biden administration advocating for federal assistance to cover the entire cost upfront.

The law has received widespread support from the relatives of the six workers who died in the tragic incident. In a statement, the families’ legal representative highlighted the legislation’s importance, stating that it transcends political allegiance and is focused on protecting Americans from unnecessary tragedies caused by foreign vessels.

As the investigation into the bridge collapse continues, the city of Baltimore has accused the vessel’s owners of gross negligence, claiming that the Dali was “clearly unseaworthy” at the time of the accident.

The National Transportation Safety Board (NTSB) documented the circumstances preceding the incident but has yet to determine the probable cause.

Reference: FreightWaves

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