$8 billion of Lost Trade due to Baltimore Port Closure

The closure of the Port of Baltimore for six-weeks due to the collapse of the Baltimore Key Bridge could result in $8 billion of lost trade, Russell's analysis can reveal.

London, 28th March 2024The closure of the Port of Baltimore due to the collapse of the Baltimore Key Bridge could result in $8 billion (£6.25 billion) of lost trade says Russell Group, a data and analytics company.

$1.49 billion (£1.18 billion) of cars along with $377 million of coal will be disrupted for the next six weeks, according to calculations by Russell’s ALPS Marine.

Russell’s Analysis covers the time period from 26th March to 7th May, which is approximately six weeks, which is in-line with current estimates for how long the port may be out of commission for.

This works out as $16 million (£11.8 million) a day in lost trade as the port remains out of commission for a considerable amount of time.

Baltimore is the main port for the US car sector, with $24 billion (£19 billion) of cars exported and imported annually according to ALPS Marine. In addition, the port is one of the US’s main ports with an annual trade of $81 billion (£64 billion).

Automakers that use the port such as General Motors, Ford Motor, Toyota, Nissan and Mitsubishi have said they were monitoring the situation.

Many of these automakers have an estimated $552 million (£437 million) of lost trade during this period, according to ALPS Marine calculations.

Data was taken from ALPS Marine and modelled against the port’s previous trade figures for the same period last year.

Suki Basi, Russell Group Managing Director, commented on the figures:

“Firstly, I want to say that my thoughts are with those individuals are who missing and with their families from this tragic event.

The collapse of the Baltimore Key Bridge has now resulted in one of the US’ most key ports now being closed for a significant amount of time.

The port plays a vital role in moving many items in and out of the United States including cars and coal. Furthermore, by being one of the largest ports for car trade in and out of the US, many global carmakers will be monitoring the situation in the coming days and weeks.

Similarly, with numerous factories based in and near the bridge, risk managers will be examining any possible impact on their supply chain.

In addition, with the port now out of action, shipping operators will be diverting their ships to alternative ports on the East Coast, which could create some delays at these ports.”

Post Date: 28/03/2024

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