Coal company sues Dali shipowners for over $100M
A major U.S. coal company has added to the growing list of claims against the owner and manager of the Singapore-flagged ship that caused the collapse of Baltimore’s Francis Scott Key Bridge earlier this year.
Consol Energy is suing Grace Ocean Private Ltd. and Synergy Marine Group for damages related to the Key Bridge collapse that “are expected to exceed $100 million,” according to a lawsuit filed in a federal court in Maryland on Wednesday.
Grace Ocean and Synergy Marine, which owned and managed the container ship Dali when it rammed the bridge on March 26, filed for liability protection less than a week after the accident, attempting to limit their liability to $43.7 million by invoking the Limitation of Liability Act of 1851.
But Canonsburg, Pennsylvania-based Consol (NYSE: CEIX), which operates a coal export terminal in Baltimore, contends – as do all others claiming damages resulting from the bridge collapse – that the owner and manager were negligent and therefore their liability should not be limited.
“As a result of the blockage arising from the allision, claimant was required to effectively shut down operations at its Consol Marine Terminal [CMT], limiting the company’s ability to ship coal for overseas export, resulting in severe economic impact including revenue loss and loss of storage,” the coal company stated in its filing.
“Claimant has suffered and will continue to suffer damages in the form of lost profits and lost business as a result of the Key Bridge collapse attributable to the allision.”
Consol ships approximately 65%-70% of its total export coal production to overseas industrial and metallurgical markets, with most moving through CMT, according to the company.
The importance of CMT was reflected in the stock market: Consol shares closed down 6.8% when the financial markets opened the day of the accident.
The nearly two-month shutdown of CMT between March and May was also reflected in the company’s second-quarter earnings. Throughput volume at CMT was down 57%, to 2.3 million tons, compared with the same period a year ago.
CMT net income and adjusted earnings were $2.3 million and $5.2 million, respectively, in the second quarter compared to $21.1 million and $23.9 million, respectively, in 2023.
“All actual damage suffered by the claimant relates to the added cost from the loss of access, use, and maintenance of their property to pursue their economic interest,” Consol stated in its court filing. “All costs and business losses incurred by the claimant were and are a direct and foreseeable consequence of the Petitioners’ intentional and reckless conduct.”
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