{"id":2206718,"date":"2024-03-26T16:28:02","date_gmt":"2024-03-26T20:28:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/baltimore-bridge-collapse-will-have-ripple-effect-on-economy-and-global-supply-chain\/"},"modified":"2024-03-26T16:35:13","modified_gmt":"2024-03-26T20:35:13","slug":"baltimore-bridge-collapse-will-have-ripple-effect-on-economy-and-global-supply-chain","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/baltimore-bridge-collapse-will-have-ripple-effect-on-economy-and-global-supply-chain\/","title":{"rendered":"The Baltimore bridge collapse is set to impact the economy and global supply chain significantly"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">30<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fbaltimore-bridge-collapse-will-have-ripple-effect-on-economy-and-global-supply-chain%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2206718&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>The \u2064catastrophic collapse of the \u2062Francis \u200dScott Key Bridge in\u2063 Baltimore has brought\u200c a crucial trade hub to a standstill. A container \u2062ship collision led to the bridge&#8217;s collapse, <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/worlds-two-most-important-shipping-canals-now-facing-serious-delays\/\" title=\"Major shipping canals face significant delays\">impacting global trade<\/a> and local economy. The Port of \u2063Baltimore, a significant trade entry point, faces disruptions in vehicle\u200c and\u2064 cargo transportation, \u200daffecting various\u200c industries and necessitating\u2062 rerouting strategies. The collapse of the\u200c Francis Scott Key Bridge \u200cin Baltimore has paralyzed a\u200c vital\u2063 trade center. \u2062Following \u200da container ship accident, the bridge&#8217;s destruction has repercussions on global trade \u200dand\u2063 the local economy. Disruptions\u200c in vehicle and\u2062 cargo \u2063transport at the\u2064 Port of Baltimore prompt the\u2063 need for rerouting plans to\u200c mitigate impacts across industries.  <\/p>\n<p class=\"readmore\">\n    <button onclick=\"showReadMore()\" id=\"readmorebtn\">Read more&#8230;<\/button>\n<\/p>\n<hr id=\"line\">\n<span id=\"more\"><\/p>\n<div>\n<p>The early-morning <a href=\"https:\/\/www.washingtonexaminer.com\/news\/2938357\/baltimore-bridge-collapse-mass-casualty-event-after-ship-crashes-into-key-bridge\/\" target=\"_blank\" rel=\"noopener\" title=\"catastrophic collapse\">catastrophic collapse<\/a> of the Francis Scott Key Bridge in Baltimore, <a href=\"https:\/\/www.washingtonexaminer.com\/tag\/maryland\/\" target=\"_blank\" rel=\"noopener\" title=\"Maryland\">Maryland<\/a>, has brought one of the most important trade hubs in the United States to a <a href=\"https:\/\/www.washingtonexaminer.com\/opinion\/beltway-confidential\/2939047\/how-quickly-can-maryland-biden-administration-rebuild-key-bridge\/\" target=\"_blank\" rel=\"noopener\" title=\"halt\">halt<\/a> \u2014 indefinitely.\u00a0<\/p>\n<p>A\u00a0948-foot container ship called the <em>Dali<\/em> hit a support column\u00a0on the Baltimore bridge\u00a0around 1:30 a.m. Tuesday, causing it to fall and sending at least seven cars plunging into the Patapsco River. <a href=\"https:\/\/www.washingtonexaminer.com\/news\/2938357\/baltimore-bridge-collapse-mass-casualty-event-after-ship-crashes-into-key-bridge\/\" target=\"_blank\" rel=\"noopener\" title=\"The Dali\u00a0\">The <em>Dali<\/em>\u00a0<\/a>had been headed to Sri Lanka and was flying under a Singapore flag.\u00a0<\/p>\n<figure><figcaption>A cargo ship is stuck under part of the structure of the Francis Scott Key Bridge after the ship hit the bridge on Tuesday, March 26, 2024, in Baltimore, Maryland. (AP Photo\/Steve Helber)<\/figcaption><\/figure>\n<p>The 1.6-mile bridge\u2019s collapse will undoubtedly have a profound economic effect both locally and globally. Around the world, about 40 ships, including 34 cargo vessels, were headed for <a href=\"https:\/\/www.washingtonexaminer.com\/tag\/baltimore\/\" target=\"_blank\" rel=\"noopener\" title=\"Baltimore\">Baltimore<\/a>, according to MarineTraffic, which tracks ships.\u00a0<\/p>\n<p>The <a href=\"https:\/\/msa.maryland.gov\/msa\/mdmanual\/01glance\/html\/port.html\" target=\"_blank\" rel=\"noopener\" title=\"Port of Baltimore \">Port of Baltimore <\/a>tops the U.S. list for the volume of automobiles and light trucks it handles, as well as for vessels that carry wheeled cargo, such as construction machinery and farm equipment, <a href=\"https:\/\/www.washingtonexaminer.com\/tag\/wes-moore\/\" target=\"_blank\" rel=\"noopener\" title=\"Gov. Wes Moore\">Gov. Wes Moore<\/a> (D-MD) boasted last month. The Maryland Department of Transportation Port Administration called \u201ccargo\u201d the \u201clifeblood of the Port of Baltimore.\u201d\u00a0<\/p>\n<p><a href=\"https:\/\/www.washingtonexaminer.com\/opinion\/beltway-confidential\/2939047\/how-quickly-can-maryland-biden-administration-rebuild-key-bridge\/\" target=\"_blank\" rel=\"noopener\" title=\"HOW QUICKLY CAN MARYLAND AND THE BIDEN ADMINISTRATION REOPEN THE BALTIMORE HARBOR AND REBUILD THE KEY BRIDGE?\"><strong>HOW QUICKLY CAN MARYLAND AND THE BIDEN ADMINISTRATION REOPEN THE BALTIMORE HARBOR AND REBUILD THE KEY BRIDGE?<\/strong><\/a><\/p>\n<p>The Port of Baltimore, the deepest harbor in Maryland\u2019s Chesapeake Bay, is closer to the Midwest than any other East Coast port. It\u2019s one of Maryland\u2019s major sources of personal and business revenue and has created 15,300 direct jobs and another 140,000 other jobs linked to port activities, according to Moore.\u00a0<\/p>\n<p>It generates more than $395 million in taxes, $2.6 billion in business income, and $3.3 billion in total personal income. Maryland resident Greg Trenchard, who often travels across the bridge to take photos at sunrise and sunset, called the collapse\u00a0and closing of the port a blow to the city.\u00a0<\/p>\n<p>\u201cIt\u2019s devastating to port traffic and everything they\u2019re trying to do to revitalize the shipping industry in Maryland and keep that going,\u201d he <a href=\"https:\/\/www.usatoday.com\/story\/news\/nation\/2024\/03\/26\/baltimore-francis-scott-key-collusion\/73102358007\/\" target=\"_blank\" rel=\"noopener\" title=\"told\">told<\/a>\u00a0<em>USA Today<\/em>.\u00a0<\/p>\n<p>All vessel traffic in and out of the Port of Baltimore is suspended until further notice.\u00a0<\/p>\n<p>Kevin Linderman, a professor and <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/biden-vs-supply-chain-experts\/\" title=\"Biden vs. Supply Chain Experts\">supply chain expert<\/a> at Pennsylvania State University, said that while the port is closed, companies will have to reroute their shipping to other East Coast ports in New York, New Jersey, and Virginia.\u00a0<\/p>\n<p>\u201cHowever, this will put additional demand on these ports, and shippers may not be able to access U.S. markets\u201d as efficiently, he said.\u00a0\u201cOne critical question is, can the other ports handle the products that were destined to Baltimore?\u201d<\/p>\n<p>It\u2019s a concern\u00a0echoed by Emily Stausb\u00f8ll, an analyst at Oslo-based shipping analytics company Xeneta.\u00a0<\/p>\n<p>\u201cThe question is how quickly ocean freight carriers can put diversions in place, particularly for vessels already en route to Baltimore or containers at the port waiting to be exported,\u201d she <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2024-03-26\/new-york-new-jersey-ports-seen-getting-diverted-baltimore-ships?utm_medium=social&#038;utm_content=tv&#038;utm_campaign=socialflow-organic\" target=\"_blank\" rel=\"noopener\" title=\"told\">told<\/a>\u00a0<em>Bloomberg<\/em>, adding that the bridge collapse could threaten global trade flows that have already been strained.<\/p>\n<p>\u201cFar East to U.S. East Coast ocean freight services have already been impacted by drought in the Panama Canal and recent conflict in the Red Sea, which saw rates increase by 150%,\u201d she added. \u201cThis latest incident will add to those concerns.\u201d<\/p>\n<p>Here\u2019s a look at some of the other economic effects of the bridge collapse and port closure:\u00a0<\/p>\n<h2>Automobiles <\/h2>\n<figure><figcaption>Visitors and journalists crowd near a Ford Focus on display at the Ford exhibit during the media day for the China Auto Show in Beijing, Wednesday, April 25, 2018. Volkswagen and Nissan have unveiled electric cars designed for China. (AP Photo\/Andy Wong)<\/figcaption><\/figure>\n<p>The Port of Baltimore handled close to 850,000 cars and light trucks last year, more than any other U.S. port in a decade. It is used for imports and exports for major automakers including Nissan, Toyota, General Motors, Volvo Cars, Jaguar Land Rover, and Volkswagen. It also handles luxury models for Audi, Bentley, and Lamborghini.\u00a0<\/p>\n<p>Jason Miller, a business professor at Michigan State University, said he believes consumers interested in imported motor vehicles will be hit the hardest. <\/p>\n<p>\u201cAs such, so long as motor vehicle sales remain strong, we could see inventories drop on the lots of dealers that sell imported vehicles until alternative arrangements can be made,\u201d he said. \u201cThis could increase motor vehicle prices for some makes and models.\u201d<\/p>\n<p>John Lawler, Ford Motor Company\u2019s <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/tokyo-olympics-set-to-go-on-regardless-of-covid-19-pandemic\/\" title=\"Tokyo Olympics Set To Go On \u2018Regardless\u2019 Of COVID-19 Pandemic\">chief financial officer<\/a>, told Bloomberg TV that the port closing will have an impact on sales. \u201cWe\u2019ll work on the workarounds,\u201d he added. \u201cWe\u2019ll have to divert parts to other ports along the East Coast or elsewhere in the country.\u201d<\/p>\n<p>General Motors also said it is working to reroute vehicle\u00a0shipments, though it said it is only bracing for \u201cminimal impact\u201d from the port closing.<\/p>\n<p>The news was even better for\u00a0Volkswagen, which said its port operations would be unaffected due to the location of its facilities.\u00a0<\/p>\n<p>\u201cWe do not anticipate any impact on vessel operations but there may be trucking delays as traffic will be rerouted in the area,\u201d the carmaker said in an emailed statement.<\/p>\n<p>Despite the degrees of disruption, the bridge collapse and port closing come at a time when the auto industry was just starting to bounce back from the pandemic and problems with the global supply chain.\u00a0<\/p>\n<h2>Cargo<\/h2>\n<figure><figcaption>A cargo ship approaches the Port of Baltimore, Monday, March 21, 2022, in Baltimore. (AP Photo\/Julio Cortez)<\/figcaption><\/figure>\n<p>The Port of Baltimore was the ninth-busiest port in the nation last year for receiving foreign cargo in terms of volume and value.\u00a0<\/p>\n<p>The\u00a0<a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/no-america-should-not-ditch-strategic-ambiguity-for-reckless-hawkishness-on-taiwan\/\" title=\"No, America Should Not Ditch Strategic Ambiguity For Reckless Hawkishness On Taiwan\">largest container ship<\/a> ever to enter the port also arrived last year with the capacity to carry more than 15,000 20-foot containers.\u00a0State-owned terminals, which are managed by the Maryland Port Administration, and private terminals in Baltimore transported a record 52.3 million tons of foreign cargo in 2023, worth an estimated $80.8 billion.\u00a0<\/p>\n<p>\u201cThis is a major disaster and will create significant problems on the U.S. East Coast for U.S. importers and exporters,\u201d Lars Jensen, CEO of Vespucci Maritime, warned Tuesday. \u201cThe bridge collapse will mean that for the time being, it will not be possible to get to the container terminals, or a range of the other port terminals, in Baltimore. \u2026 Additionally, this means the cargo already gated into the Baltimore terminals would have to either wait an unknown period for the sea lane to reopen or be gated back out and shifted to a different port.\u201d<\/p>\n<p>Coffee, coal, and sugar are also transported in large volumes through the port.\u00a0<\/p>\n<p>Georgios Hatzimanolis, who analyzes global shipping for MarineTraffic, said he expects delays.\u00a0<\/p>\n<p>\u201cWe do expect there to be a ripple effect, but it\u2019s a bit too early to say what the impact will be,\u201d he said.\u00a0<\/p>\n<h2>Deliveries <\/h2>\n<figure><figcaption>An Amazon Prime truck and a U.S. Postal Service truck make deliveries at an apartment complex in Pittsburgh on Feb. 15, 2024. (AP Photo\/Gene J. Puskar)<\/figcaption><\/figure>\n<p>Big-name distribution warehouses such as Amazon, FedEx, Home Depot, and Under Armour are located in an industrial park near the Port of Baltimore. While they were not directly affected by the bridge collapse, they could experience some residual\u00a0effects.\u00a0<\/p>\n<p>Neil Saunders, managing director of the retail division at consulting company GlobalData, said rerouting bridge traffic\u00a0could \u201chave a negative impact on journey times and costs for both incoming and outgoing goods\u201d from those centers.\u00a0<\/p>\n<p>\u201cThere might be a slight regional impact as other centers have to increase volume to compensate, but this should not be too onerous as most retailers can divert\u00a0delivery\u00a0traffic via other routes,\u201d he <a href=\"https:\/\/www.businessinsider.com\/amazon-fedex-deliveries-baltimore-could-be-impacted-by-bridge-collapse-2024-3\" target=\"_blank\" rel=\"noopener\" title=\"told\">told<\/a> <em>Business\u00a0Insider<\/em>.\u00a0<\/p>\n<p>When it comes to volume, the Port of Baltimore accounts for only 4% of all East Coast trade volume, compared to New York, for example, which handles 38%.\u00a0<\/p>\n<h2>Cruises <\/h2>\n<p>The collapse of the\u00a0Francis Scott Key Bridge will also throw a wrench into several major cruise\u00a0lines traveling in and out of Baltimore. There were more than a dozen ships scheduled to make 115 stops in the Port of Baltimore, according to the Cruise Lines International Association, the industry\u2019s <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/china-chip-industry-group-troubled-by-u-s-export-curbs\/\" title=\"China chip industry group \u2018troubled\u2019 by U.S. export curbs\">top trade group<\/a>.\u00a0<\/p>\n<p>\u201cWe are deeply saddened by the tragedy and collapse of the Key Bridge that occurred last night and extend our support and heartfelt prayers to all those impacted,\u201d CLIA spokeswoman Anne Madison said in a statement. \u201cWe join everyone in extending our thanks and appreciation to the first responders and emergency workers in Baltimore, the U.S. Coast Guard, and other professionals who are working with one goal in mind \u2014 to save lives. We are closely following this situation.\u201d<\/p>\n<p>Carnival Cruise Line and Royal\u00a0Caribbean have trips on the books, including Royal Caribbean\u2019s <em>Vision of the Seas<\/em> scheduled to depart from Baltimore on April 12. On its website, the company touts its cruises from Baltimore, calling it the \u201cperfect mix of big-city bustle and vacation vibes.\u201d <\/p>\n<p>It also directs customers to check out Baltimore\u2019s National Aquarium, Fort McHenry, and pit stops at \u201cone of Baltimore\u2019s many acclaimed restaurants, locally loved coffee and tea shops, or craft breweries.\u201d\u00a0<\/p>\n<p><strong><a href=\"https:\/\/www.washingtonexaminer.com\" target=\"_blank\" rel=\"noopener\" title=\"CLICK HERE FOR MORE FROM THE WASHINGTON EXAMINER \">CLICK HERE FOR MORE FROM THE WASHINGTON EXAMINER <\/a><\/strong><\/p>\n<p>\u201cAdd a day or two to take your vacation to experience the best of Baltimore before or after you set said \u2014 you\u2019ll be glad you did,\u201d the website states. <\/p>\n<p>A spokesperson for the company said it is \u201cclosely monitoring the situation, and our port logistics team is currently working on alternatives for <em>Vision of the Seas\u2019<\/em>s ongoing and upcoming sailings.\u201d\u00a0<\/p>\n<\/p><\/div>\n<p><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The sudden collapse of the Francis Scott Key Bridge in Baltimore, Maryland, due to a ship collision has halted a key trade hub indefinitely. The 948-foot container ship called the Dali struck a support column around 1:30 a.m. on Tuesday, leading to the bridge&#8217;s collapse and disrupting operations<\/p>\n","protected":false},"author":2646,"featured_media":2206719,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/wex-s3.s3.us-east-1.amazonaws.com\/wp-content\/uploads\/2024\/03\/AP24086411542633-1024x576.jpg","fifu_image_alt":"","footnotes":""},"categories":[538],"tags":[],"class_list":["post-2206718","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-washington-examiner"],"fifu_image_url":"https:\/\/wex-s3.s3.us-east-1.amazonaws.com\/wp-content\/uploads\/2024\/03\/AP24086411542633-1024x576.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2206718","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/2646"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2206718"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2206718\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2206719"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2206718"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2206718"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2206718"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}