The unfortunate collapse of Maryland’s Francis Scott Key Bridge in Baltimore has led to the tragic loss of up to six human lives, a major blow to a city already struggling, significant traffic congestion, and potential shipping delays for nearby companies.
While analysts predict a minimal impact on the broader U.S. economy, the closure affects the port’s role as a key entry point for various goods, including vehicles, farm equipment (ro-ro cargo), sugar (there are significant stockpiles -so calm your sweet tooth), and coal exports.
Clean-up & Quick-Fixes
Efforts to clear the wreckage from last week’s bridge collapse in Baltimore are underway. Despite the complexity of the task and the obstacles in the way, the US Army Corp of Engineers estimates that it will take weeks, not months, to restore full access to the port.
Teams will first work to open a temporary channel, allowing easier access for recovery vessels and restoring some commercial traffic to the port. However, the dimensions and depth will not accommodate large vessels like container carriers.
What does this mean for containers?
The impact on containers depends on where they are located. Based on port operations, containers not yet discharged will likely experience delays. Discharged containers should be able to be picked up from the port.
Shippers who normally rely on the Port of Baltimore are offered contingency plans from carriers to reroute volumes through alternative ports like New York/New Jersey and Norfolk. To ensure smooth operations, expanded gate hours, additional trucking capacity from Maryland-area truckers, and an anticipated special New York – Baltimore rail service are being put into place at these ports to accommodate the diverted volumes. Chassis providers are likewise confident there is enough supply to service the rerouting, and warehouse and drayage providers are also rushing to adjust.
Port officials in NY/NJ and Norfolk, where some Baltimore volumes have already started to arrive, are confident that they can handle the additional containers without disruptions. So far, there have been no reports of congestion at these ports.
The operation to free the vessel from impingement and to open the channel to container traffic is expected to take at least several weeks and perhaps significantly longer. The M/V DALI will need to be stabilized and towed back to the Port of Baltimore for the offloading and transshipment of the containers aboard (approximately 4,700 cargo laden containers).
Several major ocean carriers have issued force majeure notices to their customers regarding containers that were inbound to the Port of Baltimore for import. Those notices essentially advise that these shipments will be rerouted to an alternate port where the carrier will consider the bill of lading terminated. The cost of rerouting and/or final delivery will be the responsibility of the shipper.
What does this mean for over-the-road freight?
The American Trucking Associations says that about 4,900 trucks cross the bridge daily. While there are two tunnels that cross the Patapsco River, the industry group says trucks carrying hazardous cargo are not allowed to use them. Those trucks will have to take a roughly 30-mile detour, which will take more time and burn more fuel. In general, expect some delays and added costs with a slight loss in productivity.
Anything to consider for Customs Clearance?
Vessel arrival notices and manifest updates are required for cargo intended for unloading in Baltimore.
Vessels already in the Port of Baltimore with cargo destined for subsequent U.S. ports will need to consider whether to hold the cargo onboard or discharge the cargo in Baltimore. For cargo not originally intended for Baltimore, manifests will need to be updated, and either entry or in-bonds will need to be filed to move the cargo from Baltimore via truck or rail to the subsequent destination.
For export cargo, vessel agents/operators must determine if unloading cargo from the vessel would be preferred and feasible. Export carriers are allowed to submit export manifests after departure. Carriers must submit their export documents, either 1302A or EEM, from the updated port. The port and date of export would need to be updated for affected EEI submissions.
To avoid delays with perishable and other agricultural cargo, importers and customs brokers importing agricultural cargo under a USDA import permit are encouraged to review their import permits as they may need to contact the USDA Permit Unit to update the approved arrival ports.
What to do?
In the short term, trucking, rail, and transloading rates may spike in the region. However, ocean freight rates to the East Coast are unlikely to be impacted. In the long term, freight typically destined for Baltimore will experience delays and increased costs due to transloading or longer drayage distances. Please contact your CargoTrans solution sales representative or customer service representative to discuss, plan, and keep shipping simple.
