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MOL and US Reach Settlement for a Berth Damages Caused by Cruise Ship

Five years after the Nippon Maru, a cruise ship owned by Japanese shipping giant MOL, caused significant damage to a fueling berth at the U.S. Khmer port of Apra Harbor, the parties have reached a settlement.The United States had filed a lawsuit in 2023 seeking to seize and sell the cruise ship to satisfy a claim for damages.

The case was complicated by the findings of the National Transportation Safety Board (NTSB) and the U.S. Coast Guard that the captain of the Nippon Maru was “under the influence of alcohol”, which complicated the case. The legal case reported a positive breathalyzer test, above the legal limit.

The 22,500 gross ton, Japanese-flagged “Nippon Maru” departed its berth on December 20, 2018, while carrying 524 passengers and 244 crew members. According to the lawsuit filed in March 2023, the captain of the cruise ship failed to “exercise care and skill in navigation”, causing the cruise ship to strike the berth. Specifically, the master failed to engage in formal master/pilot communication, failed to maintain radio contact with the assisting tug and failed to maintain situational awareness while underway.

The accident resulted in a 5-foot x 7-foot split in the stern section of the Nippon Maru above the draft line, leaving the interior of the ship exposed.

It wasn’t until January 11, 2019 that the cruise ship’s repairs were completed and sailed away. The U.S. Navy said the accident caused significant damage to the berth, amounting to at least $8 million.

The National Transportation Safety Board determined that the probable cause of the accident was the master’s alcohol intoxication while maneuvering the vessel, which resulted in engine failure.

After the incident, the captain of the Nippon Maru admitted to drinking alcohol, but based on the results of a blood test, the Board concluded that “the captain may have consumed more alcohol than he reported.

The parties have engaged in several rounds of settlement negotiations. The judge then filed a motion to postpone the trial and reported that a preliminary settlement had been reached. However, no specifics or dollar amounts were disclosed. They said it would take about 30 days to get final approval of the settlement from Washington, D.C.

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