How Baltimore Bridge Collapse Affects Auto Shipping ATI Special Report

"The Port of Baltimore is the ninth busiest port in the United States and the 17th largest overall for international cargo. The facility handles over 50 million tons of international cargo annually. On a daily basis, goods worth between 100 million and 200 million dollars are shipped in and out of the port.
Baltimore handled over $6 billion in construction, farm, and passenger vehicle imports and exports last year, making it the third-largest port in the U.S. and the largest site for those goods.
In 2023, the total value of imported autos and light trucks was 23 billion dollars. The Port of Baltimore has been the busiest port for cars and light trucks in the United States for 13 consecutive years. Last year, both private and public terminals at the port handled almost 850,000 cars and light trucks, which is more than any other port in the country.
The Maryland Port Administration states that 'this facility is within an overnight drive of two-thirds of the U.S. population, and it is closer to the Midwest than any other port on the East Coast.'
Over a dozen major automakers, including Audi, Bentley, Ford, GM, Jaguar Land Rover, Lamborghini, Mazda, Mercedes, Nissan, Subaru, Toyota, and Volvo, utilize the Baltimore port for importing and exporting vehicles and automotive parts. For Mercedes Benz, the Baltimore port is one of their four distribution centers in the United States for vehicles coming from Germany.
It has been reported that on Tuesday, March 26th, 2024, a cargo ship named 'Dali' lost power and collided with the Francis Scott Key Bridge. This incident caused a 1.6 mile section of Interstate 695 to fall into the Patapsco River. Unfortunately, it is presumed that six construction workers lost their lives in the accident.
A structural engineer has estimated that it will take 1-2 years to rebuild the 1.6-mile-long span. The closure of the shipping channel is expected to result in a loss of 191 million dollars per day in economic activity. It is still unclear how long it will take to remove the collapsed bridge structure from the 50-foot-deep Patapsco River channel, which leads to the port’s main terminal.
The Francis Scott Key Bridge used to connect Hawkins Point to Sparrows Point, which was a crucial route for trucking in and out of the Port of Baltimore. As of 2022, over 35,000 vehicles and 4,800 trucks traveled across the bridge daily.
Traffic that used to cross the bridge now has three alternative routes. Two of them are tunnels that go under the Port of Baltimore. One of them is Interstate 95, and the other is on Interstate 895. However, hazardous materials cannot go through either tunnel. The maritime risk management company predicted that ships scheduled to go to Baltimore would be delayed by at least 24 days.
After the collapse, the Port of Baltimore announced the suspension of vessel traffic in and out of the port until further notice. However, trucks within the port's terminals can still be processed. The Tradepoint Atlantic terminal is situated at the mouth of the harbor, before the Francis Scott Key Bridge. Volkswagen and BMW operate there and are less affected by the suspension because their terminals are located east of the bridge and remain accessible. Recently, a ship carrying Volkswagens arrived at the terminal and was able to dock as usual.
Many individuals do not typically give much thought to ports, unless there is a worldwide pandemic or important transportation connections abruptly come to a halt. However, the Port of Baltimore is responsible for the employment of more than 15,000 workers, and indirectly sustains nearly 140,000 jobs through other port activities. Unfortunately, many of these workers will either be temporarily unemployed or subject to limited hours due to the current situation.
By mid-April 2024, analysts are investigating accidents, removing complex wreckage, including hazardous materials, cargo, and logistics, and considering economic impacts and changes in destination expectations. The closure of the port will be mostly felt as an entry point for passenger vehicles, construction, and farm equipment.
Most dealers are not yet concerned about a shortage of new cars as a result of the recent incident. The affected automakers have a surplus of new vehicles on dealer lots, with roughly a 60-day supply of new car inventory already stored across the country.
Automakers are already planning to use alternate port delivery locations, such Brunswick, Georgia (the second-largest facility for cars and other vehicles), along with Newark, Norfolk, and Jacksonville. Like Baltimore, those ports can handle the types of ships that transport vehicles. #baltimore #bridgecollapse #autoshipping
- Jay Wertzberger, Founder, ATI Auto Business
www.atiautobus...
Watch An ATI Port Of Baltimore Impact Full Panel Discussion
www.youtube.co...
Subscribe to ATI Auto Business
/ @atiautobusiness