South Korean shipbuilder HD Hyundai Group is tense following the collision of the HD Hyundai Heavy Industries (HHI)-built cargo ship Dali with the Francis Scott Key Bridge at the Port of Baltimore, United States.
According to sources in the shipbuilding and maritime industry on March 29, HD Hyundai is gathering information on the incident and closely monitoring the investigation into its cause. HD HHI constructed the Dali at its Ulsan shipyard and delivered it to the client in 2015. The propulsion main engine, B&W 9590ME-C9, and the auxiliary generator engine, HiMSEN 9H32/40, were both manufactured by HD HHI.
HD Hyundai believes the ship was defect-free, as it operated without major issues for eight years after it began service in 2015. The warranty period for the ship and its engines, which lasts one to two years after delivery, has already expired.
The cause of the accident is being attributed to an electrical system issue, keeping HD Hyundai on edge. According to foreign media, just before colliding with the bridge, the ship reported to the authorities in Maryland that it had “lost control of the ship and could collide with the bridge.” One of the primary reasons for losing control of a ship is problems with the electrical system. Some officials at the Port of Baltimore claimed in a local broadcast interview immediately after the accident that “The Dali had experienced severe electrical problems in the two days prior to departure.”
Given the scale of the accident, which resulted in the deaths and disappearance of six individuals, a thorough investigation by judicial authorities appears inevitable. Considering the enormity of the incident, the magnitude of the insurance claim is staggering, with some financial analysts estimating the total insurance payout to be between $2 billion and $4 billion. The amount includes the cost of $2 billion needed to remove the debris of the collapsed bridge and build a new one, plus estimated compensation for damages caused by the blockage of the Port of Baltimore, the largest automobile import port in the U.S. and the second-largest coal export port.
The HiMSEN 9H32/40 engine model used in the Dali has been installed in various container ships over time, suggesting that the likelihood of an engine design flaw is low. Industry experts in the shipping sector point out that the Dali may have been overworked and poorly maintained after its operational hours were reduced for modifications in 2020. Some speculate that while traversing areas like the Panama Canal on its Asia-Americas route, the Dali might have used low-quality, low-sulfur fuel in Central and South America, where managing fuel quality is challenging, potentially leading to equipment damage.
This article was originally published on March 29, 2024.
