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Baltimore's Francis Scott Key Bridge Collapse Update
On 26 March, the Francis Scott Key Bridge in Baltimore, Maryland collapsed after one of its pillars was struck by a container ship. Vessel traffic into and out of the Port of Baltimore was suspended until further notice, but the port is still open for truck transactions.
Bridge Collapse Continues to Disrupt Relocation Supply Chain
The closure of the Port of Baltimore, which ranks ninth in overall US trade volume, has significantly impacted the international trade traffic it processes. In 2023, the Port set a record for handling international cargo, with 52.3 million tons valued at nearly $81 billion.
The bridge collapse continues to cause disruptions to supply chains both in the immediate area and across stretches of the country:
- Cargo, which would otherwise have passed through Baltimore, will continue to be discharged at alternative ports (such as New York, Newark, Norfolk, VA and Brunswick, GA) and will reach its destination by truck or rail.
- Delays and/or restrictions should be expected on any shipments to/from the Port of Baltimore as well as at nearby ports.
- Freight rates have increased.
Port officials have said that a temporary channel (about 35 feet deep and 280 feet in length) created by the US Army Corps of Engineers is progressing and that the Port of Baltimore may be fully operational to ocean vessel traffic by early June.
Supply chains have faced mounting pressures from various sources, including incidents in the Red Sea and low water levels in the Panama Canal. The closure of the channel leading from the Port to the seas underscores the fragility of today's supply chain, especially after pandemic-related disruptions in shipping from 2020 to 2022. Unfortunately, the loss of maritime traffic in Baltimore is estimated to cost the US economy about $9 million each day.
“As long as the port is not fully functioning, the impact will be felt all over,” said Maryland Governor Wes Moore.
Future Relocation Updates As Needed
NEI will continue to monitor the situation, provide updates, and keep clients advised of any specific shipments affected. We will also provide updates on future shipments and how the situation impacts the supply chain as we learn more.
If you have questions, please contact your NEI Representative at 800.533.7353 any time.
This material has been prepared for informational purposes only and is not intended to provide, and should not be relied on for tax, legal or accounting advice. Please consult your own tax, legal and accounting advisors before engaging in any transaction.
Baltimore's Francis Scott Key Bridge Collapse Update
On 26 March, the Francis Scott Key Bridge in Baltimore, Maryland collapsed after one of its pillars was struck by a container ship. Vessel traffic into and out of the Port of Baltimore was suspended until further notice, but the port is still open for truck transactions.
Bridge Collapse Continues to Disrupt Relocation Supply Chain
The closure of the Port of Baltimore, which ranks ninth in overall US trade volume, has significantly impacted the international trade traffic it processes. In 2023, the Port set a record for handling international cargo, with 52.3 million tons valued at nearly $81 billion.
The bridge collapse continues to cause disruptions to supply chains both in the immediate area and across stretches of the country:
- Cargo, which would otherwise have passed through Baltimore, will continue to be discharged at alternative ports (such as New York, Newark, Norfolk, VA and Brunswick, GA) and will reach its destination by truck or rail.
- Delays and/or restrictions should be expected on any shipments to/from the Port of Baltimore as well as at nearby ports.
- Freight rates have increased.
Port officials have said that a temporary channel (about 35 feet deep and 280 feet in length) created by the US Army Corps of Engineers is progressing and that the Port of Baltimore may be fully operational to ocean vessel traffic by early June.
Supply chains have faced mounting pressures from various sources, including incidents in the Red Sea and low water levels in the Panama Canal. The closure of the channel leading from the Port to the seas underscores the fragility of today's supply chain, especially after pandemic-related disruptions in shipping from 2020 to 2022. Unfortunately, the loss of maritime traffic in Baltimore is estimated to cost the US economy about $9 million each day.
“As long as the port is not fully functioning, the impact will be felt all over,” said Maryland Governor Wes Moore.
Future Relocation Updates As Needed
NEI will continue to monitor the situation, provide updates, and keep clients advised of any specific shipments affected. We will also provide updates on future shipments and how the situation impacts the supply chain as we learn more.
If you have questions, please contact your NEI Representative at 800.533.7353 any time.
This material has been prepared for informational purposes only and is not intended to provide, and should not be relied on for tax, legal or accounting advice. Please consult your own tax, legal and accounting advisors before engaging in any transaction.
