As of: March 27, 2024, 11:38 a.m
By: Max Schäfer
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Bridge collapse in Baltimore blocks port.
It is enormously important for the auto industry.
What consequences does this have for the global economy?
Baltimore – The collapse of the Francis Scott Key Bridge in Baltimore, Maryland, is having an impact on the global economy.
The collapsed bridge is blocking the port of the city on the east coast, which has great importance for the local economy.
At the same time, Baltimore is an important transshipment point for cars, coal and agricultural machinery.
After the container ship “Dali” rammed the bridge on the night of Tuesday, March 26th, the local authorities closed the port.
40 freighters have to anchor in front of the port, the
Reuters
news agency reported .
Others cannot leave, including the German freighter Klara Oldendorff.
The bridge collapse in Baltimore could put international supply chains under pressure
The delays in Baltimore may have additional consequences for global shipping.
"If there are shortages and ships have to wait, that could cause delays for importers using these ports," Judah Levine of logistics company Freightos told
CNN
.
“Congestion can also put some pressure on freight rates between Asia and the US East Coast as well as transatlantic traffic.” The costs for transport by ship could therefore increase.
Access to the Port of Baltimore is blocked after the bridge collapsed.
© Kaitlin Newman/dpa
The bridge collapse can also have consequences for global supply chains.
"While Baltimore is not one of the largest ports on the US East Coast, it imports and exports more than a million containers each year, which can cause significant supply chain disruptions," Emily Stausbøll, market analyst at transportation analytics firm Xeneta, told
CNN
.
How important is the Port of Baltimore to the economy?
According to CNN,
52.3 million tons of goods worth $80.8 billion were
handled at the Port of Baltimore last year.
This is one of the most important ports for agricultural and construction machinery, the import of sugar and gypsum and is the second largest hub for the export of coal.
Most ships come from Mexico, Japan and Europe, said Tinglong Dai, a professor at Johns Hopkins University who researches supply chains.
However, the port is particularly important for the automotive industry - also from Germany.
More than 800,000 vehicles reach the port every year.
German manufacturers are also affected by the bridge accident in Baltimore.
Mercedes-Benz operates a terminal behind the bridge, which is therefore no longer accessible.
The manufacturer is currently examining delivery routes to evaluate alternatives,
Handelsblatt
reported .
The manufacturer also uses other ports such as New Brunswick and Charleston for imports.
German car manufacturers BMW and VW only marginally affected by bridge collapse in Baltimore
BMW and VW, on the other hand, are lucky.
Their distribution centers are on the sea side of the bridge.
So they are still available, explained Tinglon Dai.
According to Handelsblatt
, BMW
does not assume that the bridge collapse “will have an immediate impact on our business.”
The terminal is still accessible.
VW also does not expect major disruptions: “We do not expect any impact on shipping operations, but there may be delays in truck traffic as traffic in the area is being rerouted.”
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Because it's not just the port that's blocked.
The Francis Scott Key Bridge will also eliminate an important road connection in the Baltimore region.
Up to 35,000 cars and trucks normally travel on the bridge every day.
These could be redirected.
However, the diversions are likely to increase prices.
US President Joe Biden has therefore already announced the government's help in reopening the port.
However, there is no timetable.
“Fifteen thousand jobs depend on this port.
And we will do everything we can to protect those jobs and help those workers,” Biden said, according to
CNN
.
Experts do not expect the bridge collapse in Baltimore to have a major impact on the economy
However, despite the rising cost of transportation, Mark Zandi, chief economist at Moody's Analytics,
doesn't expect it to have a major impact on the economy, according to
CNN .
“It complicates things, but there is already a lot of disruption in the international supply chain.” (ms)