U.S. Baltimore Bridge Collapse Causes Supply Chain Concerns

Highlights

• Concerns rise of a “ripple effect” on global supply chains after a container ship crashed into a bridge in the US city of Baltimore.
• According to a report, numerous problems could arise for India’s supply chain.
• The supply chain of coal, LNG, and refined products could be affected but have minimal impact on US refined products markets.

The traffic through the Maryland port has been disrupted after the collapse of Baltimore’s Francis Scott Key Bridge, after being struck by the container ship on 26^th March 2024. This port is the major hub for warehousing and transhipment of commodities on the US East Coast. The port of Baltimore near the bridge is the largest in the United States for specialized cargo. Baltimore was the top loading location for US thermal coal exports. Our data shows Baltimore handled approximately USD 2,037 million worth of export shipments and USD 45,143 million worth of import shipments in 2022.

According to a report, more than 45 million tonnes of foreign cargo have been suspended until further notice. The suspension could have a significant ripple effect on global supply chains. Baltimore is the busiest US port for car shipments, and the largest by volume for handling farm and construction machinery. It is also the second-biggest port for the US coal exports. 

How much the United States export and import through the Port of Baltimore?

The total trade of the United States through the Port of Baltimore increased in 2023 as compare to the previous year. Below given chart shows import and export approx. values of the United States reported from the Port of Baltimore in 2022 and 2023.

According to our data, U.S. exports through the Port of Baltimore valued at USD 87 million January and USD 79 million in February 2024. US imports via this port valued at USD 243 million in Jan and USD 94 million in Feb 2024.

What is India’s dependency on imports from the Port of Baltimore?

India’s imports from the US Port of Baltimore totalled USD 472 million in 2022 and increased to USD 2,123 million in 2023. Here is a list of major commodities which India import from the United States.

US top export destinations – shipments depart from the Port of Baltimore

The highest number of shipments depart from the Port of Baltimore to the top countries – India, Chile, Argentina, Peru, Vietnam, and Brazil. Check stats to understand how much these countries received shipments from the Port of Baltimore.

In 2023, the highest number of shipments with commodities worth USD 2,123 million were departed from the Port of Baltimore to India, followed by Brazil, Peru, Chile, and Vietnam. Check their values in the given chart.

US Refined Products Supply by Pipeline

According to a report, the bridge collapse had little to no impact on US refined products prices. Cargo shipping into the area will undoubted be impacted by this event, fuel supplies are also unlikely to see any notable change as the nine fuel terminals in Baltimore are primarily supplied by Colonial Pipeline.

The Port of Baltimore handled around 3% of all U.S. East and Gulf Coast imports and about 10% of U.S. Northeast imports of containerized freight in the 12 months to 31^st Jan 2024.

According to a report, it will take few days to assess how much debris is there from the incident and how much draft is available, because if the draft is low, then it could be a problem. After Baltimore bridge collapse, the container traffic will likely to be shifted to other area ports, including ports in New York, New Jersey and Norfolk, Virginia.