The collapse of the Francis Scott Key Bridge March 26 has closed access to the Port of Baltimore, a major East Coast seaport. The indefinite closure will require vessels to await the clearing of the waterway or re-route to other available ports in the region.
Following the collapse of the Francis Scott Key Bridge early March 26, officials in Baltimore, Maryland have stated that maritime traffic through the Port of Baltimore is suspended until further notice. The collapse, which is believed to have resulted in the death of six people, was caused by a collision with the bridge by the Singapore-flagged cargo vessel Dali following the failure of the vessel’s propulsion system. Wreckage from the bridge fell into the Patapsco River shipping lane, blocking access to much of the port. With work to clear the shipping lane likely to take weeks, if not months, supply chain disruptions are almost certain, with the automobile and commodity markets most likely to be affected.
The port of Baltimore ranked 17th most important in the US in terms of total tons of cargo handled in 2021, with its importance growing significantly over the past decade and ranking 9th in total value of imports in 2023. While it is not a major port for containerized cargo, it ranked first in the US for automobiles and light trucks handled, as well as for farming and construction machinery. It is also a major port for commodities, particularly the export of coal and the import of sugar and gypsum. A number of cruise lines also operate from the port, with over 444,000 passengers departing Baltimore on Royal Caribbean, Carnival, and Norwegian cruises in 2023.
Following the collapse, at least three vessels at sea have diverted from Baltimore; more are likely to follow. In addition, seven cargo vessels are stuck within the port, and nine vessels are present at anchorages in the Chesapeake Bay showing Baltimore as the final destination. Despite this, some vessels appear to be continuing to sail to Baltimore. This may be due to some facilities at Baltimore remaining accessible, especially the facilities at Sparrows Point/Tradepoint Atlantic, located east of the Key Bridge. Several major automobile companies have vehicle distribution centers at Sparrows Point, including Volkswagen and BMW, meaning that some level of activity can go on. However, the larger vehicle processing facilities at Fairfield Marine Automobile Terminal and Dundalk Marine Terminal are inaccessible, and the six berths available at Sparrows Point pale in comparison to the total of 173 berths available in the Port of Baltimore.
It is likely that other ports on the US East Coast will be able to handle any increased traffic that the closure of the Port of Baltimore will cause, especially when it comes to container ships. US East Coast ports have seen a slump in container volumes in recent months due to low water levels in the Panama Canal resulting in cargo from Asia being routed to the West Coast rather than through the canal to the East Coast, with diversions due to Al-Houthi attacks in the Red Sea having a similar effect. However, increased traffic to other US East Coast ports may nonetheless place some strain on their capacities and increase the chance of major disruption should another issue arise. One such possibility is labor unrest, with contract negotiations between East Coast longshoremen and employers due to begin in May. The International Longshoremen’s Association has threatened strike action should a deal not be reached before the end of the current contract in September. Though the Patapsco River waterway will almost certainly have been cleared by then, localized strikes remain a possibility in the coming months, with union branches instructed to resolve local disputes before union-wide negotiations begin.
Regardless of whether other ports are able to take in additional vessels and minimize disruptions at sea, supply chains on land are still likely to be affected, particularly the automotive industry and commodities. In the short term, 12 vessels had been scheduled to depart Baltimore carrying coal in the coming week. These are now no longer able to depart, and the coal will need to be transported over land to another port for shipment. As for vehicles, though other ports in the region may be able to accommodate additional roll-on roll-off (Ro-Ro) vessels, there may not be the capacity to store or transport all the vehicles unloaded, ultimately leading to shortages at dealerships and increased lead times. Though there are fears of global repercussions due to the port’s closure, this is somewhat mitigated due to Baltimore’s import/export trade imbalance, with 73 percent of goods passing through the port being imports. It is also worth noting that the absence of the bridge is likely to cause disruption to supply chains even once the waterway has been cleared. Though much of the cargo is transported in and out of the port by rail, truck traffic remains important and will be seriously affected until the bridge is repaired or replaced. Ultimately, however, the scale of the disruption depends on the duration of the closure of the waterway, as well as the timeline for any bridge repairs or construction. As of March 27, these remain unknown.
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