The unfortunate encounter of the "DALI" freighter, from the loss of power, the collision of the bridge to the declaration of general average, a series of developments in this incident not only set off huge waves, but also aroused strong concern in the global maritime and marine insurance industries.
It all started with a sudden accident at the end of March this year
After leaving the Port of Baltimore, the "DALI" lost power and crashed into a bridge, causing the bridge to collapse, not only causing people and vehicles to fall into the river, but also the Port of Baltimore, the largest automobile port in the United States, being forced to close.
When disaster strikes, neither the economic operation of the port nor the cargo estimates on the "DALI" can predict the complex rescue and claims process that will be faced.
News from the media on April 12 made the situation even more tense
According to CCTV News, citing the Washington Post, the long-term closure of the Port of Baltimore is expected to result in up to $4 billion in insurance losses due to the accident.
The insurance that shipping companies used to buy may now be a source of comfort, but it is a huge challenge for insurers.
In response to the incident, ship management company Synergy Marine took legal action with Grace Ocean, owner of the vessel "DALI".
They filed a Limitation of Liability Court petition in an attempt to limit their liability to $43.6 million.
All this seems insignificant, compared to the billions of dollars in compensation that may be faced.
A further development was the official response to the act of salvage
In an announcement on April 12, the Mediterranean Shipping Corporation (MSC) mentioned that salvage operations for the "DALI" cargo ship are still ongoing.
Although there is no indication of when and where the vessel will berth and unload, the high cost of salvage operations is well established.
The shipowner declared a general average, hoping that the rescued people would share the costs and that Richards Hogg Lindley (RHL) of London would act as the general average claimant to control the subsequent containers until arrangements were made.
General average is strictly defined in international maritime law and is intended to equitably share salvage and other special expenses incurred for a common purpose.
However, the adjustment process is extremely complex, involving a number of costs such as cargo damage, ship damage, rescue, maintenance, etc., and requires a long period of precise calculation to determine the amount to be shared by all parties.
The customer's goods are time-sensitive, but after the declaration of general average, each cargo owner needs to provide appropriate guarantees to the adjuster to prove that he is willing to share the average before he can expect to get the goods.
This situation exposes cargo owners to potentially long waiting periods and uncertainty about insurance liquidation, highlighting the enormous impact of potential risks in ocean freight.
From an individual point of view, general average does reflect the principles of mutual assistance and fairness between the maritime industry, but it also reflects the complex relationship between cooperation and individual responsibility in the business environment.
The "DALI" incident also reminds us that the further improvement and challenges of maritime laws and insurance systems still need to be discussed by the global shipping industry, in order to reduce losses and protect the rights and interests of victims in similar crises.