The temporary halt in maritime activities at the Port of Baltimore is exacerbating existing challenges faced by businesses due to bottlenecks at the Panama Canal and attacks on ships in the Red Sea.
The recent collapse of the Francis Scott Key Bridge on March 26, 2024, has drawn attention to the port, one of the busiest in the U.S., leading to a suspension of shipping and the immediate cessation of all vessel traffic.
Although the port remains accessible to trucks, the cessation of maritime traffic is expected to result in a daily economic loss of $9 million, with broader implications as billions of dollars worth of goods are rerouted, potentially causing disruptions in supply chains for months and resulting in a decrease in tax revenue for the city and state.
Simona Stan, a supply chain and logistics expert at the University of Montana, explained that the immediate impact will be felt by the approximately 15,000 port workers and around 140,000 others who depend on its operations.
Despite accounting for only 4% of overall East Coast trade, the Port of Baltimore plays a crucial role in handling U.S.
international trade traffic, especially for products like automobiles, heavy machinery, and coal, as well as a significant portion of U.S. sugar imports.
Businesses and consumers should anticipate delays for packages that would have normally been processed by the port, with these delays expected to last from a few days to a week or two, depending on the time required for ships to be redirected to other terminals.
However, unlike other recent supply chain disruptions such as the Red Sea attacks or the COVID-19 pandemic, which have resulted in ongoing issues, the overall impact of the bridge collapse on supply chains should be temporary.