Baltimore bridge collapse will have significant economic impact

The collision of a shipping vessel, Dali, with the Francis Scott Key Bridge that caused its collapse yesterday has at least six people missing.

The incident has also halted ship traffic at the Port of Baltimore indefinitely, which ranks first among US ports for autos and light trucks, due to debris in the water, affecting nearly 15,000 direct jobs dependent on the port.

The port is a major hub for vehicles, containers, and commodities. Its closure affects various industries, including automotive, sugar refining, and cruise tourism.

The nighttime accident could have a significant impact on the local economy and affect supply chains due to its location as it stands on an important maritime trade route.

Baltimore is an important trade route for some industries.

Auto
The port handled a record 850,000 vehicles and 52.3 million tons of cargo valued at $80.8 billion in 2023.

Closing of the route has major shipping companies like Maersk rerouting cargo to nearby ports, potentially causing delays for importers.

Rerouted traffic may congest alternative ports and increase shipping costs, affecting freight rates.

Sugar
Baltimore’s 115-year-old Domino Sugar refinery, the largest cane sugar refinery in the Western Hemisphere, will have its cane shipments halted.

Tourism
Cruises like Royal Caribbean, Carnival and Norwegian operate from the port and are now facing operational challenges. They carried more than 444,000 passengers from the port last year.

While disruptions are expected, economists suggest the impact on the national economy may be limited as goods find alternative ports.

Efforts are underway to clear debris from the Patapsco River, which remains a priority to restore port operations. President Joe Biden has pledged federal assistance.

The bridge reconstruction is expected to take years.