The Baltimore Ship Accident, The High Stakes For India

On March 26, 2024, the container ship Dali collided with the Francis Scott Key Bridge in Baltimore, United States, resulting in at least six fatalities and millions of dollars in property damage, causing a stir in the maritime and logistics sectors.

The Baltimore Ship Accident

The crash was a spectacular tragedy captured on video clip that went viral on YouTube. That it happened in the U.S. also made it one of the most high-profile maritime accidents after the Exxon Valdez tanker accident, in 1989, that led to an unprecedented oil spill off Alaska, in turn triggering extraordinary changes in maritime regulations and industry practices as well as awareness on maritime pollution.

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Why the Country is an Industry Player

Unlike in the past, India has emerged as a key player in global shipping as its seafarers man many of the ocean-going ships bringing in vital foreign exchange as remittances.

• Indian seafarer remittances are typically equivalent to some 15% of all foreign direct investment that comes into the country every year.
• Though the levers of power in global shipping as well as ship building, owning and financing continue to be outside the domain of India and Indians, India inevitably figures in maritime events as a source of seafarers and as managers of ships.
• So is the case with Dali, whose crew is almost all Indian. Insurance experts have said that the Dali accident will equal or surpass the highest-ever marine insurance payout of $1.5 billion in the case of the Costa Concordia cruise vessel capsizing in 2012. 
  • The high expected payout in the Dali case is due to the loss to lives, property, and business also due to the shutdown of the busy Baltimore port.
• Synergy Maritime Group, the Singapore-based manager of Dali, is a company founded by and run largely by Indians but with a global footprint. With a large operation in Chennai, it employs thousands of Indian seafarers and has been an Indian success story in global shipping, managing more than 650 ships.
• Though Synergy and the ship owner will not be handed a bill for $1.5 billion and the actual payout will be borne be insurers and a club of over 80 re- insurers, there may well be an eventual financial fallout for Synergy especially if it is proven that the managers had neglected in or avoided keeping equipment in proper operating conditions, in turn leading to the collision.
• Synergy’s rapid rise is attributed to the trust it has earned among ship owners – that it can operate ships smoothly and safely as per regulations at optimum costs.
• And that trust, which has helped Indian seafarers get lucrative jobs, is in danger of being eroded.
• The interim report on the Dali accident put out by the investigators made it a point to talk about the causes of two onboard blackouts occurring in Baltimore port just 10 hours before departure. One of the causes was apparently a botched operation by a seafarer.
  • There is a distinct possibility that the final report will seek to pinpoint botched or wrong operations by ship staff as contributors to, if not the causes of, the two blackouts that led to the loss of steering control and ship motive power, eventually leading to the collision.
• This would put a question mark over the competence and certification of Indian seafarers which form the backbone of job worthiness of Indian seafarers.
• Most seafarers would testify to the rigorous Indian process that ensures only thoroughly trained and knowledgeable people are certified for various shipboard operations.

Swift Moves

Soon after the accident, U.S. President lauded Dali’s Indian seafarers who, after losing control of the ship, promptly alerted the authorities so that they could shut down the bridge.

• Though it was found, eventually, that the Dali’s navigators were acting as per the instructions of the American pilot onboard, Mr. Biden’s intent was clear. He wanted to tamp down anti-Indian sentiments.

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Conclusion

The Dali accident underscores the pivotal role of Indian seafarers in global shipping, while highlighting the urgent need for robust maritime safety and regulatory measures.