Baltimore bridge collapse sparks trade disruption with unusable port – what economic impact will it have?
The Singapore-flagged Dali container ship has shut down the Port of Baltimore indefinitely after it collapsed the 1.6 mile long Francis Scott Key bridge on the east US coast.
Around a dozen cargo ships are estimated to be stuck inside the port unable to leave as the bridge spans the only route in and out of the harbor where it is located. Another 30 small small cargo ships, tug boats and pleasure craft are also in the port, while about 40 heading for Baltimore have been forced to divert
But US Secretary of Transportation Pete Buttigieg said that a “main area of concern” was the livelihoods of port workers, telling a press conference on Wednesday that thousands of jobs could be affected by the incident.
Baltimore handled 52.3 million tons of foreign cargo last year worth about $80.8 billion. The port was the second busiest for coal exports last year, with its eight dry bulk terminals exporting 22 million tonnes of coal last year and small amounts of other metals and minerals.
At a White House press briefing on Wednesday, Mr Buttigieg adressed the impact of the crash on the local economy, saying that some 8,000 jobs were directly associated with port activities.
“Last I checked… about $2 million in wages are at stake every day and that’s one of the areas was concerned about,” he said.
“It’s one thing for a container or vehicle or a shipment to be absorbed or accommodated somewhere else, but these longshore workers – if goods aren’t moving, they’re not working.
“Right now there is work taking place even inside of that bridge because of the work that has to be done to offload some of the vehicles that are that are stuck there and get that back on the surface transportation to go out to other sites, so they’re likely working right now, but that work won’t last long and that’s one of our main areas of concern.”
Mr Buttigieg added that economic effects would “ripple out beyond the immediate region,” saying: “This is an important port for both imports and exports and it’s America’s largest vehicle handling port, which is important not only for car imports and exports, but also for farm equipment.
“No matter how quickly the channels can be reopened, we know that it can’t happen overnight, and so we’re going to have to manage the impacts.”
Mr Buttigieg said that lessons on similar economic disruption had been learned from coronavirus pandemic. The bipartisan Infrastructure Investment and Jobs Act was, passed by the Biden administration in 2021, pledged to “rebuild America’s bridges” as well as “ease inflationary pressures and strengthen supply chains by making long overdue improvements for our nation’s ports…”
The establishment of a freight office within the transportation department as part of the act “allows to create coordination” when dealing with incidents such as the crash, Mr Buttigieg said.
“Tomorrow, I will be convening shippers and other supply chain partners to understand their needs and to promote a coordinated approach as they adapt to the temporary disruptions while we plan mitigations,” he told reporters.
“That said, the Port of Baltimore is an important port. So for our supply chains, and for all the workers who depend on it for their income. We’re going to help to get it open as soon as safely possible… Rebuilding will not be quick or easy or cheap, but we will get it done.”
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