Baltimore Bridge Collapse: Catastrophic consequences threaten to impact cars to coal
economictimes.indiatimes.com
As much as 2.5 million tons of coal, hundreds of cars made by Ford Motor Co., and General Motors Co., and lumber and gypsum are threatened with disruption after the container ship Dali slammed into and brought down Baltimore’s Francis Scott Key Bridge in the early hours of Tuesday.
Six people were presumed dead after a search in the Patapsco River, officials said Tuesday evening. The toll could have been worse except for a mayday call from the Singaporean-flagged vessel as it lost power.
The aftermath of the bridge’s collapse throws another spotlight on the fragile nature of global supply chains that have already been strained by drought in Panama and missile attacks on Red Sea shipping by Yemen-based Houthi militants. Docks in New Jersey and Virginia face the threat of being overwhelmed by traffic that’s being forced away from Baltimore, one of the busiest ports on the US East Coast.
“It’s a large port with a lot of flow through it, so it’s going to have an impact,” John Lawler, Ford’s chief financial officer, told Bloomberg TV. “We’ll work on the workarounds. We’ll have to divert parts to other ports along the East Coast or elsewhere in the country.”
Baltimore only handled about 3% of all East Coast and Gulf Coast imports in the year through Jan. 31, said S&P Global Market Intelligence. But it’s crucial to cars and light trucks with European carmakers such as Mercedes-Benz Group AG, Volkswagen AG and BMW operating facilities in and around the port.
