Concerns have been raised over the global supply chain following a disaster that forced the closure of the Port of Baltimore after the collapse of the bridge in the city.
Baltimore is one of the top 20 ports in the United States by tonnage and it handled a record 1.1 million 20-foot equivalent units (TEU) of containers, accounting for 2.1 percent of the total for all US ports.
It is also an important hub for the auto industry and it hosts transatlantic traffic, including small vessels from northern Europe, the Mediterranean, and the Indian Ocean.
The port ranks first for farm and construction machinery, in addition to imported sugar and gypsum, and is second in coal exports.
The closure of the port is predicted to mainly impact US exports of coal and imports of cobalt, S&P Global ratings agency said.
German auto companies Volkswagon and BMW said their operations have not been affected, while Ford says it has alternatives
Coal exports from Baltimore hit 28 million tons in 2023, fueled by increasing demand from Asia, the US Energy Information Administration said.
Baltimore’s cobalt stocks were already under pressure because of the high demand for the product, a necessary component for electric car batteries and high-tech gadgets.
Attacks from Yemen’s Houthi rebels in the Red Sea have also brought on delays as shipping companies have to reroute to longer and more expensive routes.
The bridge incident is expected to have “little to no impact” on US refined oil products and shipping fuel supplies “could tighten” on the Atlantic Coast.
