Bridge Collapse in Baltimore Disrupts Port Operations, Forces Cargo Ships to Seek New Harbors

Manufacturers and shippers are urgently seeking alternative ports to load or unload cargo as the Port of Baltimore's main operations remain closed following the collapse of the Francis Scott Key Bridge. Supply chain experts predict that other East Coast ports will absorb much of Baltimore's traffic, preventing a crisis but causing longer shipping times and disruption. Most trade through Baltimore will eventually find a new home port, according to Moodys Analytics economist Harry Murphy Cruise.

US Transportation Secretary Pete Buttigieg stated that it was too early to estimate how long it would take to clear the bridge structure from the 50-foot-deep Patapsco River channel, which leads to the port's main terminal. The Port of Baltimore is a crucial destination for freight due to its location. The Maryland Port Administration claims that the facility is an overnight drive from two-thirds of the US population and is closer to the Midwest than any other East Coast port.

Baltimore is the ninth-busiest port in the nation and leads US ports in roll-on, roll-off cargo, primarily consisting of automobiles but also including construction and agricultural equipment. The state of Maryland reports that the port moved 847,158 automobiles last year, with about 70% of wheeled cargo being imported. The port also handles significant amounts of wood, steel, aluminum, home appliances, furniture, sugar, and liquefied natural gas. Approximately 20% of US coal exports pass through Baltimore, second only to Norfolk, Virginia.

More than 50 ocean shipping and cruise ship companies do business with the port, with their vessels visiting about 1,800 times per year. In 2021, over 444,000 passengers boarded cruise ships at the port from Royal Caribbean, Carnival, Norwegian, and other cruise lines. Many ships bound for Baltimore are now waiting to be booked at other ports, delaying their arrival dates by several weeks. Windward Maritime estimates that ships scheduled to go to Baltimore will be delayed by at least 24 days.

Automakers and shipping companies are expected to divert their cargo to ports along the East Coast as they seek alternatives to Baltimore. Ports in Philadelphia, Wilmington, Delaware; Newark, New Jersey; Norfolk; Charleston, South Carolina; Jacksonville, Florida; and Georgia could see additional cargo. The Georgia Ports Authority has stated that it has capacity for more cargo but cannot make up for Baltimore alone. BMW and Volkswagen have said they will still be able to use Baltimore as part of its operations east of where the bridge collapsed remains operational.

Moodys suggests that finding substitute ports should minimize price adjustments for coal and vehicles. However, the reshuffle will put pressure on other ports, potentially increasing shipping costs as delays affect other goods. In September 2019, the South Korean freighter Golden Ray overturned shortly after leaving the Port of Brunswick in Georgia. The port was closed for four days before reopening when the US Coast Guard determined it was safe for vessels to slowly sail on the shipping channel leading to the port.

The situation in Baltimore is different due to sections of the collapsed bridge lying across the river; clearing a channel for ships will likely take much longer than four days. During a briefing at the bridge collapse scene, US Rep David Trone said state and federal officials estimated that the port's closure would cost the economy at least $15 million per day. The Port of Baltimore directly employs over 15,000 workers and indirectly supports nearly 140,000 jobs via other port activities; many of these workers will either be temporarily out of work or work limited hours.