The shipping route to the US port of Baltimore is closed until further notice Collapse of the Francis Scott Key Bridge. The bridge collapsed on Tuesday night after a large cargo ship plowed into its structure.
Officials say it will take weeks, even months, to restore traffic at the port. But it will take about five years to rebuild the bridge.
Auto giants are working on contingency plans for their inventories, which could delay deliveries of new cars and auto parts, driving up costs.
The Port of Baltimore handles the most trucks in the country. “It's the number one automotive port in the entire United States, so there will be some disruption.” John Bocella, CEO of the Alliance for Automotive Innovation, a group representing many automakers, told NPR. The impact of these disruptions on new vehicle prices is a “key question,” he added.
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Automotive industry experts estimate that around 750,000-850,000 ships call the port every year. New vehicles. Some parts used in vehicle assembly also pass through this port. Mazda had the largest imports by dollar value through Baltimore this month, according to data compiled by Bloomberg this month.
Auto giants are preparing contingency plans
The Port of Baltimore is popular among automakers because it is inland and connected to two direct rail lines. According to Stephen Gordon, managing director of Clarksons Research, the port accounts for 15 percent. Car imports to the US in 2023
Automakers using the Baltimore terminal have said they are diverting trade to other East Coast ports in South Carolina, New Jersey and New York, but expect disruptions due to increased traffic and a shortage of specialized port workers, the Financial Times writes.
According to a British newspaper, a car group that delivers cars to the US via Baltimore said the bridge's collapse could have a tangible impact on its sales in the coming months. Another major European car exporter has warned dealers to expect “delays” in vehicle deliveries.
Volkswagen and BMW are not affected by delivery delays
This problem does not affect many European car manufacturers Volkswagen, because Baltimore's Sparrows Point Terminal, on the site of an old steel mill, is below the bridge and remains open. Also a logistics center The BMW Located below the bridge – we read in “FT”.
The first ship to arrive Sparrows Point Terminal When it reopened on Wednesday, Volkswagens were exported in the Wolfsburg – the ship named after VW's German headquarters.
Initial estimates for rebuilding the bridge, mostly covered by the federal government, are $600 million, IMPLAN said. But federal officials say costs could rise to at least $2 billion, Reuters reported.