The recent collapse of the Francis Scott Key Bridge, which connects Baltimore to Dundalk, has caused a significant disruption to shipping on the East Coast of the United States. As a result of the collapse, traffic was suspended at the port of Baltimore, a key point for international container trade.
According to Drewry, the port of New York and New Jersey is the main port of entry to the northern half of the U.S. East Coast, followed by the Hampton Roads and Baltimore terminals. The Port of Baltimore, which handled 1.1 million TEUS in 2023, has experienced a decline in container volumes and an increase in capacity, especially at the Seagirt maritime terminal. Despite these challenges, wait times at the ports of Baltimore and New York have decreased recently.
With the obstruction caused by the bridge collapse, containerized exports from Baltimore will have to be diverted to alternative ports in the region or wait for the reopening of the waterway. Drewry anticipates that this situation could lead to congestion at the ports of New York/New Jersey, Philadelphia, and Hampton Roads, increasing rates, and ships being diverted to other destinations.
According to Judah Levine, Freightos Chief Analyst, while shipping is in its off-season, concerns about potential work stoppages at East Coast ports could push peak season volumes ahead. Despite this, East Coast ports are expected to be able to handle these volumes without major setbacks. However, any congestion could put pressure on spot freight rates on the Asia - US East Coast route and on Transatlantic routes, even though fares have already declined since their peak in February.
This incident underscores the importance of port infrastructure and the challenges faced by international shipping in the face of unexpected events. Flexibility and adaptability will be key to minimizing the impact on supply chains as the sector adjusts to this new reality.
Source: mundomaritimo.cl