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Port of Baltimore Closed Due to Bridge Collapse
KEY POINTS
- US' ninth largest port closed indefinitely due to bridge collapse.
- Port of Baltimore is the largest US port for car and truck shipments, potentially leading to lower automotive inventories on East Coast.
- While rerouting to other ports is possible, rerouting can also strain the capacity of other East Coast ports leading to delayed shipments.
US’ ninth largest port closed indefinitely due to bridge collapse.
The sudden collapse of Baltimore’s Francis Scott Key Bridge shut down shipments to and from the Port of Baltimore, the nation’s busiest for car and light truck imports and ninth largest for other shipments. Some analysts estimate that the port will be closed for months. The facility also handled 1.3 million tons of farm and construction machinery, the most of any U.S. port. Baltimore’s port holds just 4% of all East Coast trade volume, according to S&P Global. New York’s port, by contrast, does 38% of that business.
Shortly after the bridge collapsed, the Port of Baltimore suspended vessel traffic to and from the port “until further notice,” according to its website. Experts warn of a ripple effect because rerouting ships to alternate East Coast ports could strain capacity and lead to delivery delays that could last months. Compounding the issue, the bridge collapse coincides with ongoing disruptions at the Suez Canal and Panama Canal, further stressing global shipping. In addition, at least 40 vessels are trapped within the Port of Baltimore. Several vehicles on the bridge fell into the cold waters below, and rescuers are searching for survivors.
The port’s shutdown may lead to delays at other East Coast ports. “They will likely have to reroute shipping to other ports on the East Coast,” said Kevin Linderman, a professor and supply chain expert at Pennsylvania State University. “However, this will put additional demand on these ports, and shippers may not be able to access US markets” as efficiently, he said.
Most shipments to the port come from Mexico, Germany and Japan, said Tinglong Dai, a professor of operations management and business analytics at Johns Hopkins University. Rerouting deliveries from Mexico and Germany to other East Coast ports is feasible but transferring Japanese imports to West Coast facilities is more disruptive.
For more information, see:
Port of Baltimore website PDF, Key Bridge Incident, March 26
USA Today, How will the Baltimore bridge collapse affect deliveries? What to know after ship collision, March 26
