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Baltimore bridge collapse: how it will affect the US economy

Date: September 20, 2024 Time: 00:36:06

The blockade of the port of Baltimore, in the United States, caused by the collapse of the Francis Scott Key bridge due to the impact of a container ship, will have serious economic consequences for the country. Baltimore is one of the main US ports in the Atlantic Ocean, with a transit of 80,000 million dollars of merchandise from abroad in 2023, it is the fastest route to the middle east of the country and also the most important for the automobile transport.

Through a statement, the port authority announced that “ship traffic to or from the Port of Baltimore has been suspended until further notice,” although it added that its facilities continue processing trucks at the terminals. “At this time we do not know how long ship traffic will be suspended,” he added.

The suspension of traffic since the Deli freighter collided with one of the pillars of the Francis Scott Key bridge early on Tuesday, causing the collapse of several sections of the infrastructure, is already causing logistical problems in much of the country.

For now, dozens of vessels heading to Baltimore have had to anchor in Chesapake Bay or redirect to other ports. Maritime traffic data show accumulations of vessels in nearby ports such as Annapolis, where at least 12 vessels appeared anchored nearby.

In search of alternative routes

Local media indicate that cruise companies such as Norwegian Cruise Line have already begun to look for alternatives for their ships. For example, Carnival Cruise Line was scheduled to arrive in Baltimore on Sunday. But the alternatives in some cases are limited.

The port, the sixteenth busiest in the United States, is only one of three on the American East Coast where the world’s largest freighters can dock and has five public and 12 private terminals, dedicated to transportation, among other products, coal, containers, steel, pulp and automobiles.

In 2023, a record 52.3 million tons of cargo from abroad, with a value of $80 billion, passed through the port of Baltimore, 7.6% more than in 2022.

Through its docks, companies such as Volkswagen, General Motors (GM), Stellantis, Toyota, Nissan and Volvo, as well as luxury manufacturers such as Lamborghini, export and import their vehicles. In addition, 847,158 vehicles were transported from its facilities in 2023, which made it the most important year in the country for this type of product for the thirteenth consecutive year.

Stellantis, one of the automobile manufacturers that use the port, said in a statement that they are beginning to develop contingency plans to ensure the transportation of their vehicles. Other manufacturers such as GM and Toyota expressed themselves in similar terms although they added that they expected the impact to be minimal.

“Baltimore is the largest US auto port and we are in contact with federal officials to help them understand the size of the auto operations there.”

John Bozzella, president of the Alliance for Automotive Innovation (which brings together the main automobile manufacturers), said in a statement that although it is too early to know the impact the accident will have, “it will certainly cause problems.”

“Baltimore is the largest auto port in the United States and we are in contact with federal officials to help them understand the size of the auto operations there,” Bozzella added.

Important transit to the port of Baltimore

1.1 million TEU containers (twenty-foot equivalent or twenty-foot equivalent unit) also passed through Baltimore last year, surpassing the record of 1 million set in 2019, before the coronavirus pandemic. And due to its location as the main access route to the country’s Middle East, the port is also the most important for the transport of heavy machinery for agricultural and construction operations in the United States.

On the other hand, the port employs 15,300 people but almost another 140,000 depend on its activity, which is why the president of the local longshoremen’s union, Scott Cowan, declared to The Baltimore Sun newspaper that the suspension of maritime traffic will be “catastrophic.”

The collapsed bridge was part of Interstate 695, a key corridor for freight and passenger transportation. Maryland state officials have warned that trucks carrying hazardous materials cannot use major alternate routes and must detour east of Baltimore.

* This website provides news content gathered from various internet sources. It is crucial to understand that we are not responsible for the accuracy, completeness, or reliability of the information presented Read More

Puck Henry
Puck Henry
Puck Henry is an editor for ePrimefeed covering all types of news.
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