On Tuesday morning, March 26, the Francis Scott Key Bridge in Baltimore, US, collapsed after being struck by a cargo ship, Dali, following a loss of power and control by the crew. This incident not only disrupts Baltimore’s infrastructure but also has significant repercussions for the global shipping industry, affecting shippers and cargo transporters globally.
Immediate Supply Chain Impacts of the Baltimore Bridge Collapse
The collapse of the Baltimore bridge poses a substantial logistical challenge for shippers who rely on this critical junction for moving goods in and out of Baltimore. As the 9th busiest port in the US by overall trade volume, Baltimore primarily handles cargo for the automotive, construction, and agricultural industries. According to the Maryland Port Administration, it is strategically positioned closer to the Midwest US than any other East Coast port, making it an overnight drive for two-thirds of the US population. Cleanup and removal of the wreckage could take weeks, as per the US Army Corps of Engineers.
Short-term Effects on Shippers:
- Delays and Increased Costs: Shippers face delays and higher costs as they reroute cargo and seek alternative modes of transportation.
- Rising Demand for Trucking: Trucking companies may see a rise in demand, which could strain capacity and drive up prices.
- Port Rerouting: Ocean container vessels scheduled to call at Baltimore will be rerouted to alternative ports, leading to congestion and delays across the US East Coast, notably in Norfolk and New York/New Jersey.
- Additional Costs and Service Delays: Shippers should anticipate extra costs and service delays for both current and future shipments due to the congestion.
Baltimore’s traffic will likely shift to other East Coast ports such as Newark, New Jersey; Philadelphia; Wilmington, Delaware; Norfolk; Charleston; and Savannah.
Recommendations for Shippers with Cargo En Route to Baltimore
To mitigate the impacts of the Baltimore port closure, shippers should:
- Diversify Transportation Routes: Consider alternative routes and modes of transportation.
- Strengthen Partnerships with Carriers: Collaborate with alternative carriers to ensure continuity.
- Invest in Contingency Planning: Develop robust contingency plans for future disruptions.
For importers shipping perishable or USDA-regulated goods, it’s advisable to review and update USDA import permits to avoid customs delays.
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Recommendations for Shippers with Shipments Not Yet Loaded
All Water Routing:
If your shipments destined for Baltimore have not been loaded yet, and you prefer to maintain all water routing to the US East Coast, select the closest alternative East Coast port to your final destination to minimize additional trucking costs. Norfolk, VA, or New York/New Jersey are likely the best options for shipments from the greater Maryland/Virginia area.
Rail Routing:
For an IPI Rail solution, adjust your shipments to move over water to US East Coast or CA West Coast ports and then transition to rail. Common rail ramp options near the greater Maryland/Virginia area include:
- Pittsburgh, PA
- Cleveland, OH
- Columbus, OH
- Charlotte, NC
- Cincinnati, OH
- Louisville, KY
Transload Trucking:
Consider switching to a transload trucking option by directing shipments to Los Angeles, Long Beach, Seattle, or Tacoma, where they can be transloaded into over-the-road trucks. This option may be faster than rail, allowing goods to move directly from the West Coast port to the final destination. Although potentially more expensive than rail, it could be a cost-effective solution for destinations outside immediate rail ramp locations.
By adopting these proactive measures, shippers can minimize disruptions and maintain smoother logistics operations. For comprehensive and professional logistics solutions, consider partnering with Dantful International Logistics, a highly professional, cost-effective, and high-quality one-stop international logistics service provider for global traders.
