In Baltimore on Tuesday, a bridge accident caused the suspension of work on the Francis Scott Key Bridge, one of the busiest ports in the United States. This halt in marine traffic passing through the port will have significant implications for global supply chains as the Port of Baltimore is the nation’s ninth largest foreign cargo port and handles over 750,000 vehicles last year.
British Institute of Export and International Trade chief executive Marco Forgione expressed concern about the potential ripple effects on global supply chains from the port’s suspension. US Transportation Secretary Pete Buttigieg also acknowledged its impact on supply chains in America, but it is too early to assess the full extent of its fallout.
Major U.S automakers such as General Motors and Ford have announced plans to shift their car shipments to other ports to ease the pressure caused by this shutdown. While Port of Baltimore is crucial for auto shipments, it has smaller container traffic capabilities compared to larger ports in northeastern United States, allowing containers to be diverted without much hassle.
Experts believe that flexibility in container shipping and excess capacity in ocean freight services will help cushion this shock to supply chains. Companies like UPS are ready to divert shipments to alternative ports and modes of transportation to ensure smooth delivery of goods.
In recent years, global supply chains have faced challenges due to disruptions such as corona pandemic and Suez Canal incident, but experts suggest that a similar crisis may not occur here. Ports along East Coast have shown their willingness to help ships bound for Baltimore, minimizing any potential damage this incident could cause on US economy as a whole.
Although this bridge disaster may lead to an economic downturn in Baltimore area, experts predict it won’t significantly affect U