Hazmat Costs Surge After Scott Key Bridge Crash: Underwood Energy Brings New Lawsuit

Hazmat Carrier Sues Over Bridge Collapse, Increased Hazmat Costs

What Happened to the Scott Key Bridge

In March, the Francis Scott Key Bridge in Baltimore collapsed after being hit by a container ship named Dali. This ship, owned by Grace Ocean Private Ltd. and managed by Synergy Marine Group, was sailing under the Singapore flag. The collapse of the bridge has caused big problems for local businesses that used it. One of these businesses is Underwood Energy Inc., a company in Baltimore that moves hazardous materials like propane and butane.

Underwood Energy’s Hazmat Costs Increase Significantly

Underwood Energy has been struggling since the bridge collapse. The bridge was a key route for the company, allowing its trucks to move hazardous materials across the Patapsco River. Without the bridge, these trucks now have to take a 30-mile detour around Baltimore. This is because trucks carrying hazardous materials cannot use Baltimore’s Harbor and Fort McHenry Tunnels.

The detour has made transportation more expensive and delivery times longer for Underwood Energy. Sean Underwood, the company’s owner, said freight increases are 3-5 cents a gallon higher due to the extra time it takes to detour around Baltimore. This increase in costs has caused the company’s total freight expenses to go up by about 30%. Because of this, Underwood Energy is now struggling to compete with other companies.

Underwood Energy’s Lawsuit

Underwood Energy is suing Grace Ocean and Synergy Marine. The company claims that the owners of the Dali were careless and should pay for the losses caused by the bridge collapse. In the lawsuit, Underwood Energy says that the ship’s owners let the Dali operate even though it had power problems. These problems led to the bridge being destroyed.

The lawsuit also says that the collapse has caused an “economic shutdown” in Baltimore, hurting businesses like Underwood Energy. The company has lost a lot of business since the bridge collapse. Underwood explained that they have lost contracts for 7 to 8 million gallons of product because of the higher delivery costs and longer routes.

Safety Concerns

The bridge collapse has also raised safety concerns. Some hazmat drivers have been using illegal shortcuts through Baltimore’s tunnels because of the detours. These tunnels are not meant for hazardous materials. An investigation found that some drivers are taking off hazmat placards before going through the tunnels. This is dangerous because these placards help identify hazardous materials and are important for safety if there is an accident.

The National Transportation Safety Board (NTSB) is investigating the incident. They are looking into electrical problems on the ship that happened before the crash. A report from the NTSB shows that the Dali lost power twice on the day of the crash, which likely contributed to the accident. Investigators are also examining the ship’s electrical parts to find out what went wrong.

Legal Challenges

Underwood Energy’s lawsuit faces some challenges. The companies that own the Dali have asked for protection under an old maritime law, the Limitation of Liability Act of 1851. This law limits their financial responsibility to the value of the ship and its cargo. Charles Simmons, a lawyer who specializes in maritime law, said this law could make it hard for Underwood Energy to get compensation for their losses, especially since there was no direct damage to their property.

However, the incident has led to calls for changes in the law. Some lawmakers have introduced a bill that would increase the liability for foreign ships, which could make the Dali’s owners pay up to $854 million in damages.