AuthorCary Wong, RUSCA Blog Committee Over the past few months, the world has dealt with more than a handful of major supply chain crises. Many of these conflicts stem from issues affecting important logistics routes on land and in water. Since the beginning of this past fall season, the attacks on shipping containers by the Houthi rebels in the Red Sea have severely altered international supply chains. Meanwhile, the latest logistics crisis has taken place in Baltimore, Maryland. Early in the morning on March 26nd, 2024, the Francis Scott Key Bridge collapsed into the Patapsco River after being struck by a Singaporean container ship called MV Dali. The collapse tragically took the lives of six construction workers who were filling potholes on the bridge. The incident had the potential to be much worse than this, but the ship was fortunately able to send a signal to the authorities, who closed down the bridge just seconds before the crash. As a result, the Baltimore area has been left to deal with a world of logistics problems. The government and businesses must work to navigate these problems for the foreseeable future.
The first area of concern for supply chains resulting from the accident is that the Port of Baltimore has been forced to close. As the fallen debris from the structure is stuck in the river, no ships can enter or leave the port until the cranes clear the water. This clearly presents a conflict to businesses, as they must reroute both incoming and outgoing shipments to other ports. Some of these other port options include nearby East Coast cities such as New York, Charleston, and Savannah. Although Baltimore is not home to one of the largest overall ports compared to others in the nation, it is the number one port for roll-on and roll-off shipments, including cars, trucks, and farm equipment. According to the Alliance for Automotive Innovation, in 2022, more than 750,000 vehicles were imported and exported to and from Baltimore (Lerman). This means that car companies such as Mazda and Mercedes-Benz, as well as equipment manufacturers like John Deere and Caterpillar, will experience increased costs and delays with their shipments. Meanwhile, the other area of concern for supply chains centers around the city’s roads. The bridge was a part of Interstate Highway 695, and it was crossed by more than 11 million vehicles yearly (O’Marah). As the bridge will not be rebuilt for many years, if ever, trucks and their shipments must seek alternative routes in the future. This will add to the delays and will undoubtedly put pressure on local businesses. So far, this decade, and ever since the Covid-19 pandemic, the world has experienced many conflicts that have led to havoc for supply chains. Although the Baltimore Bridge collapse did not have major implications globally, there is no doubt that worldwide challenges will continue to occur into the future, and companies must coordinate with governments in order to minimize the effects. Sources https://www.washingtonpost.com/business/2024/03/27/baltimore-port-economy-disruption-bridge-collapse/ https://www.forbes.com/sites/kevinomarah/2024/03/27/overhyping-the-baltimore-bridge-collapse-impact-on-supply-chains/?sh=33128e5340ca https://www.pbs.org/newshour/nation/how-baltimores-key-bridge-collapse-will-affect-supply-chains-and-the-economy Comments are closed.
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