Concerns are mounting over potential disruptions to global supply chains following a dramatic incident in Baltimore. The container ship Dali collided with a support column of the Francis Scott Key Bridge in the early hours of Tuesday, causing the bridge to collapse. This vital bridge, which crosses the entrance to the Port of Baltimore, is crucial for both domestic and international trade.
The Port of Baltimore, the top US port for car exports and the ninth-busiest for foreign cargo, handled over 47 million tonnes of cargo last year. The collapse has led to the suspension of maritime traffic through the port, which could severely impact global supply chains, according to Marco Forgione of The Institute of Export and International Trade. The port is a major hub for car shipments, with brands like General Motors, Ford, and Jaguar Land Rover passing through. It also ranks highly in handling farm, construction machinery, and coal exports.
US Secretary of Transportation Pete Buttigieg acknowledged the substantial and extended impact this incident will have on supply chains, though he could not provide a timeline for reopening the port. The Port of Baltimore is relatively small compared to other major ports; it handled 265,000 containers in the last quarter of 2023, while the Port of New York and New Jersey managed about 2 million. Container traffic could be rerouted to these larger ports, which might help mitigate some immediate issues.
Despite initial fears about interruptions to liquefied natural gas (LNG) exports, operations at the Cove Point LNG terminal, which ships significant quantities of LNG to the UK and EU, have not been affected. President Biden has vowed to expedite the port’s reopening and bridge reconstruction, though this will likely take time. The Port of Baltimore supports around 15,000 direct jobs and approximately 140,000 additional positions.
In the wake of the crash, Danish shipping giant Maersk, which owned the cargo on the Dali, announced it would be bypassing Baltimore on its services for the foreseeable future. Rail and coal companies have also warned of potential disruptions.
The US Coast Guard has shifted its focus from search and rescue to recovery efforts, aiming to retrieve data from the ship’s recorder. The exact cause of the crash is still under investigation, with preliminary reports indicating the ship experienced a power issue before the collision. The Maritime and Port Authority of Singapore confirmed that the Dali’s certifications were valid and the ship had passed recent inspections. The vessel’s management, Synergy Marine Group, reported no injuries among the 22 people on board and is cooperating with federal investigations.
